Avic Heavy Machinery Co (SHSE:600765) Interest Coverage: 21.63 (As of Mar. 2026) — 221% Above Median

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SHSE:600765 Avic Heavy Machinery Co Ltd SHSE:600765
67 GF Score
Price ¥12.86
GF Value ¥17.12
Valuation Modestly Undervalued
! 10 Warning Signs
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What is Avic Heavy Machinery Co Interest Coverage?

Avic Heavy Machinery Co SHSE:600765 +0.23% 67 Interest Coverage is 21.63 as of Mar. 2026, which is 221% above its 10-year median of 6.74. GuruFocus rates SHSE:600765 with a GF Score™ of 67/100 and a GF Value™ of ¥17.12 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 2,322 Industrial Products companies, Avic Heavy Machinery Co ranks worse than 55.34% 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. Avic Heavy Machinery Co's Operating Income for the three months ended in Mar. 2026 was ¥458 Mil. Avic Heavy Machinery Co's Interest Expense for the three months ended in Mar. 2026 was ¥-21 Mil. Avic Heavy Machinery Co's interest coverage for the quarter that ended in Mar. 2026 was 21.63. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Avic Heavy Machinery Co's Interest Coverage or its related term are showing as below:

SHSE:600765' s Interest Coverage Range Over the Past 10 Years
Min: 2.41   Med: 6.74   Max: 20.87
Current: 11.7


SHSE:600765's Interest Coverage is ranked worse than
55.34% of 2322 companies
in the Industrial Products industry
Industry Median: 14.735 vs SHSE:600765: 11.70

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Avic Heavy Machinery Co  (SHSE:600765) 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 .


Avic Heavy Machinery Co Interest Coverage Related Terms


Avic Heavy Machinery Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Avic Heavy Machinery 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.

Avic Heavy Machinery Co Interest Coverage Chart

Avic Heavy Machinery Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.91 19.94 20.87 7.33 11.30

Avic Heavy Machinery Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.42 19.19 2.42 4.56 21.63

SHSE:600765 vs GEV, ETN, PH: Interest Coverage Comparison

For the Specialty Industrial Machinery subindustry, Avic Heavy Machinery 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.


Avic Heavy Machinery Co Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Avic Heavy Machinery Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Avic Heavy Machinery Co's Interest Coverage falls into.


SHSE:600765
67GF Score
Avic Heavy Machinery Co Ltd SHSE:600765
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Avic Heavy Machinery 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Avic Heavy Machinery Co's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Avic Heavy Machinery Co's Interest Expense was ¥-97 Mil. Its Operating Income was ¥1,102 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥1,018 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*1101.672/-97.458
=11.30

Avic Heavy Machinery Co's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Avic Heavy Machinery Co's Interest Expense was ¥-21 Mil. Its Operating Income was ¥458 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥1,041 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*457.894/-21.171
=21.63

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 21.63 mean?
Avic Heavy Machinery Co (SHSE:600765) has a Interest Coverage of 21.63 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Avic Heavy Machinery Co and its competitors. This is 221% above median its historical median of 6.74. Over the past decade, Avic Heavy Machinery Co's Interest Coverage has ranged from 2.41 to 20.87. According to the industry distribution chart, Avic Heavy Machinery Co ranks #1285 out of 2322 companies in the Industrial Products industry, placing it in the top 55.3%.
Is Avic Heavy Machinery Co's Interest Coverage too high?
Avic Heavy Machinery Co's current Interest Coverage of 21.63 is 221% above median its 10-year median of 6.74. Over the past 10 years, this metric has ranged from a low of 2.41 to a high of 20.87. The Industrial Products industry median Interest Coverage is 14.74. Avic Heavy Machinery Co's value of 21.63 is 46.8% above this industry median. Based on the distribution chart, Avic Heavy Machinery Co ranks #1285 out of 2322 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Avic Heavy Machinery Co has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Avic Heavy Machinery Co's Interest Coverage compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Avic Heavy Machinery Co ranks #1285 out of 2322 companies for Interest Coverage. This places Avic Heavy Machinery Co in the lower half of its industry. The industry median Interest Coverage is 14.74. Avic Heavy Machinery Co's value of 21.63 is 46.8% above this benchmark. Historically, Avic Heavy Machinery Co's own Interest Coverage has ranged from 2.41 to 20.87 over the past decade. While the company's 10-year median is 6.74 vs. the industry median of 14.74, Avic Heavy Machinery 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 an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.74, based on 2,322 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. Avic Heavy Machinery Co's current Interest Coverage of 21.63 is 46.8% 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 Avic Heavy Machinery Co and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avic Heavy Machinery Co's current Interest Coverage is 21.63, which is 221% above median its own 10-year median of 6.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avic Heavy Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Avic Heavy Machinery Co (SHSE:600765) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥17.12, compared to a current price of ¥12.86 — trading 24.9% below its estimated fair value. The current Interest Coverage is 21.63, which is 221% above median its 10-year median of 6.74 and 46.8% above the Industrial Products industry median of 14.74. Avic Heavy Machinery Co's overall GF Score™ is 67/100 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 Avic Heavy Machinery Co (SHSE:600765), the current Interest Coverage is 21.63 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 Avic Heavy Machinery Co (SHSE:600765) Overvalued in 2026?

Based on GuruFocus' analysis, Avic Heavy Machinery Co stock appears to be undervalued. The current stock price of ¥12.86 is trading 24.9% below its estimated GF Value™ of ¥17.12. GuruFocus considers Avic Heavy Machinery Co to be Modestly Undervalued.

Key valuation signals for SHSE:600765:

  • Interest Coverage: 21.63 (221% above median its 10-year median of 6.74)
  • GF Value™: ¥17.12 vs. price of ¥12.86 (24.9% below fair value)
  • GF Score™: 67/100 with 10 warning signs
  • Industry Position: 46.8% above the Industrial Products median (#1285 of 2322)

No single metric tells the full story. See the SHSE:600765 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Avic Heavy Machinery Co Business Description

Address No. 501, Beitun Road, Xintian Village, Wudang District, Guizhou Province, Guiyang, CHN, 550018
Avic Heavy Machinery Co Ltd is a China-based company engaged in the development, production, and sale of both military and civilian-used high-end equipment. It manufactures hydraulic parts, hydraulic systems, forging products, heat exchangers and gas turbines in China. The company operates in the business areas of Forging business, Hydraulic business, and New energy business. In the Forging business, the company mainly produces die forgings, free forgings, isothermal forgings and rings of different materials. In Hydraulic business, the main products are various types of heat exchangers, high-speed rotating machinery (turbine, pumps, fans), oil tanks, cooling devices, high-temperature insulation components.
67GF Score

Get the complete analysis for SHSE:600765

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥12.86
Price
¥17.12
GF Value