Riyue Heavy Industry Co (SHSE:603218) Interest Coverage: 34.03 (As of Mar. 2026) — 16% Below Median

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SHSE:603218 Riyue Heavy Industry Co Ltd SHSE:603218
83 GF Score
Price ¥10.21
GF Value ¥15.61
Valuation Significantly Undervalued
! 5 Warning Signs
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What is Riyue Heavy Industry Co Interest Coverage?

Riyue Heavy Industry Co SHSE:603218 +0.89% 83 Interest Coverage is 34.03 as of Mar. 2026, which is 16% below its 10-year median of 40.55. GuruFocus rates SHSE:603218 with a GF Score™ of 83/100 and a GF Value™ of ¥15.61 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,324 Industrial Products companies, Riyue Heavy Industry Co ranks better than 73.11% 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. Riyue Heavy Industry Co's Operating Income for the three months ended in Mar. 2026 was ¥89 Mil. Riyue Heavy Industry Co's Interest Expense for the three months ended in Mar. 2026 was ¥-3 Mil. Riyue Heavy Industry Co's interest coverage for the quarter that ended in Mar. 2026 was 34.03. 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. Riyue Heavy Industry Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

SHSE:603218' s Interest Coverage Range Over the Past 10 Years
Min: 22.2   Med: 40.55   Max: 689.44
Current: 51.4


SHSE:603218's Interest Coverage is ranked better than
73.11% of 2324 companies
in the Industrial Products industry
Industry Median: 14.735 vs SHSE:603218: 51.40

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


Riyue Heavy Industry Co  (SHSE:603218) 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 .


Riyue Heavy Industry Co Interest Coverage Related Terms


Riyue Heavy Industry Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Riyue Heavy Industry 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.

Riyue Heavy Industry Co Interest Coverage Chart

Riyue Heavy Industry 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 173.43 23.13 29.99 22.20 45.73

Riyue Heavy Industry 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 22.42 45.70 46.15 106.28 34.03

SHSE:603218 vs GEV, ETN, PH: Interest Coverage Comparison

For the Specialty Industrial Machinery subindustry, Riyue Heavy Industry 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.


Riyue Heavy Industry Co Interest Coverage vs Industrial Products Industry

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

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


SHSE:603218
83GF Score
Riyue Heavy Industry Co Ltd SHSE:603218
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Riyue Heavy Industry 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.

Riyue Heavy Industry 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, Riyue Heavy Industry Co's Interest Expense was ¥-13 Mil. Its Operating Income was ¥606 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥360 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*606.17/-13.255
=45.73

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

Here, for the three months ended in Mar. 2026, Riyue Heavy Industry Co's Interest Expense was ¥-3 Mil. Its Operating Income was ¥89 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥376 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*89.29/-2.624
=34.03

* 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 34.03 mean?
Riyue Heavy Industry Co (SHSE:603218) has a Interest Coverage of 34.03 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Riyue Heavy Industry Co and its competitors. This is 16% below median its historical median of 40.55. Over the past decade, Riyue Heavy Industry Co's Interest Coverage has ranged from 22.20 to 689.44. According to the industry distribution chart, Riyue Heavy Industry Co ranks #625 out of 2324 companies in the Industrial Products industry, placing it in the top 26.9%.
Is Riyue Heavy Industry Co's Interest Coverage too high?
Riyue Heavy Industry Co's current Interest Coverage of 34.03 is 16% below median its 10-year median of 40.55. Over the past 10 years, this metric has ranged from a low of 22.20 to a high of 689.44. The Industrial Products industry median Interest Coverage is 14.74. Riyue Heavy Industry Co's value of 34.03 is 130.9% above this industry median. Based on the distribution chart, Riyue Heavy Industry Co ranks #625 out of 2324 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Riyue Heavy Industry Co has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Riyue Heavy Industry Co's Interest Coverage compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Riyue Heavy Industry Co ranks #625 out of 2324 companies for Interest Coverage. This puts Riyue Heavy Industry Co in the upper half of its industry. The industry median Interest Coverage is 14.74. Riyue Heavy Industry Co's value of 34.03 is 130.9% above this benchmark. Historically, Riyue Heavy Industry Co's own Interest Coverage has ranged from 22.20 to 689.44 over the past decade. While the company's 10-year median is 40.55 vs. the industry median of 14.74, Riyue Heavy Industry 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 2,324 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. Riyue Heavy Industry Co's current Interest Coverage of 34.03 is 130.9% 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 Riyue Heavy Industry 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. Riyue Heavy Industry Co's current Interest Coverage is 34.03, which is 16% below median its own 10-year median of 40.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Riyue Heavy Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Riyue Heavy Industry Co (SHSE:603218) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥15.61, compared to a current price of ¥10.21 — trading 34.6% below its estimated fair value. The current Interest Coverage is 34.03, which is 16% below median its 10-year median of 40.55 and 130.9% above the Industrial Products industry median of 14.74. Riyue Heavy Industry Co's overall GF Score™ is 83/100 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 Riyue Heavy Industry Co (SHSE:603218), the current Interest Coverage is 34.03 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 Riyue Heavy Industry Co (SHSE:603218) Overvalued in 2026?

Based on GuruFocus' analysis, Riyue Heavy Industry Co stock appears to be undervalued. The current stock price of ¥10.21 is trading 34.6% below its estimated GF Value™ of ¥15.61. GuruFocus considers Riyue Heavy Industry Co to be Significantly Undervalued.

Key valuation signals for SHSE:603218:

  • Interest Coverage: 34.03 (16% below median its 10-year median of 40.55)
  • GF Value™: ¥15.61 vs. price of ¥10.21 (34.6% below fair value)
  • GF Score™: 83/100 with 5 warning signs
  • Industry Position: 130.9% above the Industrial Products median (#625 of 2324)

No single metric tells the full story. See the SHSE:603218 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Riyue Heavy Industry Co Business Description

Address Dongwu town Yinzhou district, Zhejiang, Ningbo City, CHN, 315113
Riyue Heavy Industry Co Ltd manufactures heavy duty equipment castings. Its products are windpower turbine generators, heavy diesel engines, large plastic injection molding machines, large machining centers, and giant mining machine series of castings. Geographically, it operates throughout the region of China.
83GF Score

Get the complete analysis for SHSE:603218

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

¥10.21
Price
¥15.61
GF Value