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. Sinopec Oilfield Service's
Operating Income
for the
three
months ended in Mar. 2026 was ¥664 Mil. Sinopec Oilfield Service's Interest Expense for the
three
months ended in Mar. 2026 was ¥-158 Mil.
Sinopec Oilfield Service's interest coverage for the quarter that ended in Mar. 2026 was 4.19.
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. Sinopec Oilfield Service Corp interest coverage is 2.66, which is low.
The historical rank and industry rank for Sinopec Oilfield Service's Interest Coverage or its related term are showing as below:
SHSE:600871'
s Interest Coverage Range Over the Past 10 Years
Min: 1.52 Med: 1.85 Max: 2.66
Current: 2.66
SHSE:600871's Interest Coverage is ranked worse than 71.43% of 728
companies
in the Oil & Gas industry
Industry Median: 5.84
vs SHSE:600871: 2.66
Sinopec Oilfield Service (SHSE:600871) 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 .
Sinopec Oilfield Service Interest Coverage Related Terms
Sinopec Oilfield Service 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:600871 vs NE, RIG, VAL: Interest Coverage Comparison
For the Oil & Gas Drilling subindustry, Sinopec Oilfield Service'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.
Sinopec Oilfield Service Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Sinopec Oilfield Service's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Sinopec Oilfield Service's Interest Coverage falls into.
Sinopec Oilfield Service 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.
Sinopec Oilfield Service (SHSE:600871) has a Interest Coverage of 4.19 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sinopec Oilfield Service and its competitors. This is 126% above median its historical median of 1.85. Over the past decade, Sinopec Oilfield Service's Interest Coverage has ranged from 1.52 to 2.66. According to the industry distribution chart, Sinopec Oilfield Service ranks #520 out of 728 companies in the Oil & Gas industry, placing it in the top 71.4%.
Is Sinopec Oilfield Service's Interest Coverage too high?
Sinopec Oilfield Service's current Interest Coverage of 4.19 is 126% above median its 10-year median of 1.85. Over the past 10 years, this metric has ranged from a low of 1.52 to a high of 2.66. The Oil & Gas industry median Interest Coverage is 5.84. Sinopec Oilfield Service's value of 4.19 is 28.3% below this industry median. Based on the distribution chart, Sinopec Oilfield Service ranks #520 out of 728 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Sinopec Oilfield Service has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sinopec Oilfield Service's Interest Coverage compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Sinopec Oilfield Service ranks #520 out of 728 companies for Interest Coverage. This places Sinopec Oilfield Service in the lower half of its industry. The industry median Interest Coverage is 5.84. Sinopec Oilfield Service's value of 4.19 is 28.3% below this benchmark. Historically, Sinopec Oilfield Service's own Interest Coverage has ranged from 1.52 to 2.66 over the past decade. While the company's 10-year median is 1.85 vs. the industry median of 5.84, Sinopec Oilfield Service 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 an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.84, based on 728 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. Sinopec Oilfield Service's current Interest Coverage of 4.19 is 28.3% 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 Sinopec Oilfield Service and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sinopec Oilfield Service's current Interest Coverage is 4.19, which is 126% above median its own 10-year median of 1.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sinopec Oilfield Service stock overvalued right now?
Based on GuruFocus' analysis, Sinopec Oilfield Service (SHSE:600871) is currently considered Fairly Valued. The stock's GF Value™ is ¥2.16, compared to a current price of ¥2.08 — trading 3.7% below its estimated fair value. The current Interest Coverage is 4.19, which is 126% above median its 10-year median of 1.85 and 28.3% below the Oil & Gas industry median of 5.84. Sinopec Oilfield Service's overall GF Score™ is 74/100 with 5 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 Sinopec Oilfield Service (SHSE:600871), the current Interest Coverage is 4.19 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 Sinopec Oilfield Service (SHSE:600871) Overvalued in 2026?
Based on GuruFocus' analysis, Sinopec Oilfield Service stock appears to be undervalued.
The current stock price of ¥2.08 is trading 3.7% below its estimated GF Value™ of ¥2.16.
GuruFocus considers Sinopec Oilfield Service to be Fairly Valued.
Key valuation signals for SHSE:600871:
Interest Coverage: 4.19 (126% above median its 10-year median of 1.85)
GF Value™: ¥2.16 vs. price of ¥2.08 (3.7% below fair value)
Industry Position: 28.3% below the Oil & Gas median (#520 of 728)
No single metric tells the full story. See the SHSE:600871 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sinopec Oilfield Service Corp engages in the provision of onshore and offshore oil and natural gas, exploration, provision of contracting, design, and construction services for the oil and gas projects. It operates through five segments: Geophysics, which provides technical and development, exploration geophysical services; Drilling engineering segment, which provides drilling design, and construction, technical services; Logging and mud logging segment; Special downhole segment, which provides oil engineering technical and construction services; and Engineering construction segment, which provides a package of services, including feasibility studies, procurement, and others. Its geographical segments are, The PRC, Middle East and Other countries.
74GF Score
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