China National MedicinesSHSE:600511 +1.62%86 Interest Coverage is 88.02 as of Mar. 2026, which is 55% above its 10-year median of 56.88. GuruFocus rates SHSE:600511 with a GF Score™ of 86/100 and a GF Value™ of ¥32.74 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 89 Medical Distribution companies, China National Medicines ranks better than 82.02% 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. China National Medicines's
Operating Income
for the
three
months ended in Mar. 2026 was ¥538 Mil. China National Medicines's Interest Expense for the
three
months ended in Mar. 2026 was ¥-6 Mil.
China National Medicines's interest coverage for the quarter that ended in Mar. 2026 was 88.02.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. China National Medicines Corp Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for China National Medicines's Interest Coverage or its related term are showing as below:
SHSE:600511'
s Interest Coverage Range Over the Past 10 Years
Min: 10.76 Med: 56.88 Max: 127.72
Current: 89.68
SHSE:600511's Interest Coverage is ranked better than 82.02% of 89
companies
in the Medical Distribution industry
Industry Median: 6.23
vs SHSE:600511: 89.68
China National Medicines (SHSE:600511) 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 .
China National Medicines Interest Coverage Related Terms
China National Medicines 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.
SHSE:600511 vs MCK, CAH, COR: Interest Coverage Comparison
For the Medical Distribution subindustry, China National Medicines'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.
China National Medicines Interest Coverage vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, China National Medicines's Interest Coverage distribution charts can be found below:
* The bar in red indicates where China National Medicines's Interest Coverage falls into.
China National Medicines 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.
China National Medicines (SHSE:600511) has a Interest Coverage of 88.02 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China National Medicines and its competitors. This is 55% above median its historical median of 56.88. Over the past decade, China National Medicines' Interest Coverage has ranged from 10.76 to 127.72. According to the industry distribution chart, China National Medicines ranks #16 out of 89 companies in the Medical Distribution industry, placing it in the top 18%.
Is China National Medicines' Interest Coverage too high?
China National Medicines' current Interest Coverage of 88.02 is 55% above median its 10-year median of 56.88. Over the past 10 years, this metric has ranged from a low of 10.76 to a high of 127.72. The Medical Distribution industry median Interest Coverage is 6.23. China National Medicines' value of 88.02 is 1312.8% above this industry median. Based on the distribution chart, China National Medicines ranks #16 out of 89 companies in the Medical Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, China National Medicines has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China National Medicines' Interest Coverage compare to MCK and CAH?
According to the Medical Distribution industry distribution chart, China National Medicines ranks #16 out of 89 companies for Interest Coverage. This places China National Medicines in the top 18% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 6.23. China National Medicines' value of 88.02 is 1312.8% above this benchmark. Historically, China National Medicines' own Interest Coverage has ranged from 10.76 to 127.72 over the past decade. While the company's 10-year median is 56.88 vs. the industry median of 6.23, China National Medicines 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 Medical Distribution company?
The median Interest Coverage among Medical Distribution companies is 6.23, based on 89 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. China National Medicines's current Interest Coverage of 88.02 is 1312.8% 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 China National Medicines and its competitors. For the Medical Distribution industry, the median Interest Coverage is 6.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China National Medicines's current Interest Coverage is 88.02, which is 55% above median its own 10-year median of 56.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China National Medicines stock overvalued right now?
Based on GuruFocus' analysis, China National Medicines (SHSE:600511) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥32.74, compared to a current price of ¥26.94 — trading 17.7% below its estimated fair value. The current Interest Coverage is 88.02, which is 55% above median its 10-year median of 56.88 and 1312.8% above the Medical Distribution industry median of 6.23. China National Medicines' overall GF Score™ is 86/100 with 4 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 China National Medicines (SHSE:600511), the current Interest Coverage is 88.02 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 China National Medicines (SHSE:600511) Overvalued in 2026?
Based on GuruFocus' analysis, China National Medicines stock appears to be undervalued.
The current stock price of ¥26.94 is trading 17.7% below its estimated GF Value™ of ¥32.74.
GuruFocus considers China National Medicines to be Modestly Undervalued.
Key valuation signals for SHSE:600511:
Interest Coverage: 88.02 (55% above median its 10-year median of 56.88)
GF Value™: ¥32.74 vs. price of ¥26.94 (17.7% below fair value)
Industry Position: 1312.8% above the Medical Distribution median (#16 of 89)
No single metric tells the full story. See the SHSE:600511 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China National Medicines Corp Ltd focuses on producing special drugs and high-end prescription drugs. Its main goal is to provide customers with professional medical services. The company conducts its operations through two primary segments. The Commercial segment is mainly engaged in the sale of pharmaceuticals. The Others segment focuses on pharmaceutical manufacturing and logistics operations.
86GF Score
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