Hengli Petrochemical CoSHSE:600346 +0.56%77 Interest Coverage is 5.20 as of Mar. 2026, which is 38% above its 10-year median of 3.78. GuruFocus rates SHSE:600346 with a GF Score™ of 77/100 and a GF Value™ of ¥13.87 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 1,234 Chemicals companies, Hengli Petrochemical Co ranks worse than 71.07% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Hengli Petrochemical Co's
Operating Income
for the
three
months ended in Mar. 2026 was ¥4,812 Mil. Hengli Petrochemical Co's Interest Expense for the
three
months ended in Mar. 2026 was ¥-926 Mil.
Hengli Petrochemical Co's interest coverage for the quarter that ended in Mar. 2026 was 5.20.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Hengli Petrochemical Co Ltd interest coverage is 4.09, which is low.
The historical rank and industry rank for Hengli Petrochemical Co's Interest Coverage or its related term are showing as below:
SHSE:600346'
s Interest Coverage Range Over the Past 10 Years
Min: 2.11 Med: 3.78 Max: 11.48
Current: 4.09
SHSE:600346's Interest Coverage is ranked worse than 71.07% of 1234
companies
in the Chemicals industry
Industry Median: 10.18
vs SHSE:600346: 4.09
Hengli Petrochemical Co (SHSE:600346) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Hengli Petrochemical Co Interest Coverage Related Terms
Hengli Petrochemical Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hengli Petrochemical Co's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Chemicals subindustry, Hengli Petrochemical Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hengli Petrochemical Co Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Hengli Petrochemical Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hengli Petrochemical Co's Interest Coverage falls into.
Hengli Petrochemical Co Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hengli Petrochemical Co (SHSE:600346) has a Interest Coverage of 5.20 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hengli Petrochemical Co and its competitors. This is 38% above median its historical median of 3.78. Over the past decade, Hengli Petrochemical Co's Interest Coverage has ranged from 2.11 to 11.48. According to the industry distribution chart, Hengli Petrochemical Co ranks #877 out of 1234 companies in the Chemicals industry, placing it in the top 71.1%.
Is Hengli Petrochemical Co's Interest Coverage too high?
Hengli Petrochemical Co's current Interest Coverage of 5.20 is 38% above median its 10-year median of 3.78. Over the past 10 years, this metric has ranged from a low of 2.11 to a high of 11.48. The Chemicals industry median Interest Coverage is 10.18. Hengli Petrochemical Co's value of 5.20 is 48.9% below this industry median. Based on the distribution chart, Hengli Petrochemical Co ranks #877 out of 1234 companies in the Chemicals industry, which is below the industry midpoint. Overall, Hengli Petrochemical Co has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hengli Petrochemical Co's Interest Coverage compare to DOW?
According to the Chemicals industry distribution chart, Hengli Petrochemical Co ranks #877 out of 1234 companies for Interest Coverage. This places Hengli Petrochemical Co in the lower half of its industry. The industry median Interest Coverage is 10.18. Hengli Petrochemical Co's value of 5.20 is 48.9% below this benchmark. Historically, Hengli Petrochemical Co's own Interest Coverage has ranged from 2.11 to 11.48 over the past decade. While the company's 10-year median is 3.78 vs. the industry median of 10.18, Hengli Petrochemical Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Chemicals company?
The median Interest Coverage among Chemicals companies is 10.18, based on 1,234 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hengli Petrochemical Co's current Interest Coverage of 5.20 is 48.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hengli Petrochemical Co and its competitors. For the Chemicals industry, the median Interest Coverage is 10.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hengli Petrochemical Co's current Interest Coverage is 5.20, which is 38% above median its own 10-year median of 3.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hengli Petrochemical Co stock overvalued right now?
Based on GuruFocus' analysis, Hengli Petrochemical Co (SHSE:600346) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥13.87, compared to a current price of ¥17.80 — trading 28.3% above its estimated fair value. The current Interest Coverage is 5.20, which is 38% above median its 10-year median of 3.78 and 48.9% below the Chemicals industry median of 10.18. Hengli Petrochemical Co's overall GF Score™ is 77/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Hengli Petrochemical Co (SHSE:600346), the current Interest Coverage is 5.20 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hengli Petrochemical Co (SHSE:600346) Overvalued in 2026?
Based on GuruFocus' analysis, Hengli Petrochemical Co stock appears to be overvalued.
The current stock price of ¥17.80 is trading 28.3% above its estimated GF Value™ of ¥13.87.
GuruFocus considers Hengli Petrochemical Co to be Modestly Overvalued.
Key valuation signals for SHSE:600346:
Interest Coverage: 5.20 (38% above median its 10-year median of 3.78)
GF Value™: ¥13.87 vs. price of ¥17.80 (28.3% above fair value)
Industry Position: 48.9% below the Chemicals median (#877 of 1234)
No single metric tells the full story. See the SHSE:600346 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hengli Petrochemical Co Ltd engages in the petrochemical industry. Its principal activities include: the production and sales of chemical fibers; sales of purified terephthalic acid; and import and export of goods. The company's main products include oil refining products, chemical products, PTA, polyester chips, polyester fibers, and films, among others. The company mainly operates in three business segments: the Petrochemical business segment, the Polyester business segment, and the Headquarters and other business segments. Maximum revenue is generated from the Petrochemical segment. Geographically, the company earns maximum revenue from overseas markets through exports.
77GF Score
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