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. Shandong Hualu-hengsheng Chemical Co's
Operating Income
for the
three
months ended in Mar. 2026 was ¥1,480 Mil. Shandong Hualu-hengsheng Chemical Co's Interest Expense for the
three
months ended in Mar. 2026 was ¥-76 Mil.
Shandong Hualu-hengsheng Chemical Co's interest coverage for the quarter that ended in Mar. 2026 was 19.61.
The higher the ratio, the stronger the company's financial strength is.
Shandong Hualu-hengsheng Chemical Co (SHSE:600426) 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 .
Shandong Hualu-hengsheng Chemical Co Interest Coverage Related Terms
Shandong Hualu-hengsheng Chemical Co Interest Coverage Historical Data
* 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.
Shandong Hualu-hengsheng Chemical Co Interest Coverage Chart
For the Chemicals subindustry, Shandong Hualu-hengsheng Chemical 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.
Shandong Hualu-hengsheng Chemical Co Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Shandong Hualu-hengsheng Chemical Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Shandong Hualu-hengsheng Chemical Co's Interest Coverage falls into.
Shandong Hualu-hengsheng Chemical 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.
Shandong Hualu-hengsheng Chemical Co (SHSE:600426) has a Interest Coverage of 19.61 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Shandong Hualu-hengsheng Chemical Co and its competitors. This is near median its historical median of 20.28. Over the past decade, Shandong Hualu-hengsheng Chemical Co's Interest Coverage has ranged from 7.57 to 83.96. According to the industry distribution chart, Shandong Hualu-hengsheng Chemical Co ranks #491 out of 1231 companies in the Chemicals industry, placing it in the top 39.9%.
Is Shandong Hualu-hengsheng Chemical Co's Interest Coverage too high?
Shandong Hualu-hengsheng Chemical Co's current Interest Coverage of 19.61 is near median its 10-year median of 20.28. Over the past 10 years, this metric has ranged from a low of 7.57 to a high of 83.96. The Chemicals industry median Interest Coverage is 10.21. Shandong Hualu-hengsheng Chemical Co's value of 19.61 is 92.1% above this industry median. Based on the distribution chart, Shandong Hualu-hengsheng Chemical Co ranks #491 out of 1231 companies in the Chemicals industry, which is above the industry midpoint. Overall, Shandong Hualu-hengsheng Chemical Co has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Hualu-hengsheng Chemical Co's Interest Coverage compare to DOW?
According to the Chemicals industry distribution chart, Shandong Hualu-hengsheng Chemical Co ranks #491 out of 1231 companies for Interest Coverage. This puts Shandong Hualu-hengsheng Chemical Co in the upper half of its industry. The industry median Interest Coverage is 10.21. Shandong Hualu-hengsheng Chemical Co's value of 19.61 is 92.1% above this benchmark. Historically, Shandong Hualu-hengsheng Chemical Co's own Interest Coverage has ranged from 7.57 to 83.96 over the past decade. While the company's 10-year median is 20.28 vs. the industry median of 10.21, Shandong Hualu-hengsheng Chemical Co has consistently been above 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 10.21, based on 1,231 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. Shandong Hualu-hengsheng Chemical Co's current Interest Coverage of 19.61 is 92.1% above 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 Shandong Hualu-hengsheng Chemical Co and its competitors. For the Chemicals industry, the median Interest Coverage is 10.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Hualu-hengsheng Chemical Co's current Interest Coverage is 19.61, which is near median its own 10-year median of 20.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Hualu-hengsheng Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Hualu-hengsheng Chemical Co (SHSE:600426) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥30.44, compared to a current price of ¥24.88 — trading 18.3% below its estimated fair value. The current Interest Coverage is 19.61, which is near median its 10-year median of 20.28 and 92.1% above the Chemicals industry median of 10.21. Shandong Hualu-hengsheng Chemical Co's overall GF Score™ is 95/100 with 6 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 Shandong Hualu-hengsheng Chemical Co (SHSE:600426), the current Interest Coverage is 19.61 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 Shandong Hualu-hengsheng Chemical Co (SHSE:600426) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Hualu-hengsheng Chemical Co stock appears to be undervalued.
The current stock price of ¥24.88 is trading 18.3% below its estimated GF Value™ of ¥30.44.
GuruFocus considers Shandong Hualu-hengsheng Chemical Co to be Modestly Undervalued.
Key valuation signals for SHSE:600426:
Interest Coverage: 19.61 (near median its 10-year median of 20.28)
GF Value™: ¥30.44 vs. price of ¥24.88 (18.3% below fair value)
Industry Position: 92.1% above the Chemicals median (#491 of 1231)
No single metric tells the full story. See the SHSE:600426 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Hualu-hengsheng Chemical Co Business Description
Shandong Hualu-Hengsheng Chemical Co Ltd is engaged in the production and sale of chemical products and chemical fertilizers, as well as power generation and heating businesses. The company's main products include new energy and new materials related products such as caprolactam, adipic acid, and others, chemical fertilizers such as urea and others, organic amines such as dimethylformamide (DMF), monomethylamine, and others, and acetic acid and derivatives products such as acetic acid, acetic anhydride, and others.
95GF Score
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