Zhejiang Shouxiangu Pharmaceutical Co (SHSE:603896) Interest Coverage: 5.05 (As of Mar. 2026) — 69% Below Median

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SHSE:603896 Zhejiang Shouxiangu Pharmaceutical Co Ltd SHSE:603896
61 GF Score
Price ¥14.63
GF Value ¥22.84
Valuation Possible Value Trap
! 5 Warning Signs
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What is Zhejiang Shouxiangu Pharmaceutical Co Interest Coverage?

Zhejiang Shouxiangu Pharmaceutical Co SHSE:603896 +1.11% 61 Interest Coverage is 5.05 as of Mar. 2026, which is 69% below its 10-year median of 16.50. GuruFocus rates SHSE:603896 with a GF Score™ of 61/100 and a GF Value™ of ¥22.84 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 376 Biotechnology companies, Zhejiang Shouxiangu Pharmaceutical Co ranks worse than 87.23% 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. Zhejiang Shouxiangu Pharmaceutical Co's Operating Income for the three months ended in Mar. 2026 was ¥36.4 Mil. Zhejiang Shouxiangu Pharmaceutical Co's Interest Expense for the three months ended in Mar. 2026 was ¥-7.2 Mil. Zhejiang Shouxiangu Pharmaceutical Co's interest coverage for the quarter that ended in Mar. 2026 was 5.05. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Zhejiang Shouxiangu Pharmaceutical Co's Interest Coverage or its related term are showing as below:

SHSE:603896' s Interest Coverage Range Over the Past 10 Years
Min: 3.71   Med: 16.5   Max: 116.43
Current: 3.71


SHSE:603896's Interest Coverage is ranked worse than
87.23% of 376 companies
in the Biotechnology industry
Industry Median: 106.135 vs SHSE:603896: 3.71

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


Zhejiang Shouxiangu Pharmaceutical Co  (SHSE:603896) 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 .


Zhejiang Shouxiangu Pharmaceutical Co Interest Coverage Related Terms


Zhejiang Shouxiangu Pharmaceutical Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Zhejiang Shouxiangu Pharmaceutical 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.

Zhejiang Shouxiangu Pharmaceutical Co Interest Coverage Chart

Zhejiang Shouxiangu Pharmaceutical 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 19.66 20.52 9.17 9.45 5.12

Zhejiang Shouxiangu Pharmaceutical 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 16.70 0.45 1.66 7.23 5.05

SHSE:603896 vs VRTX, REGN, RVMD: Interest Coverage Comparison

For the Biotechnology subindustry, Zhejiang Shouxiangu Pharmaceutical 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.


Zhejiang Shouxiangu Pharmaceutical Co Interest Coverage vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Zhejiang Shouxiangu Pharmaceutical Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Zhejiang Shouxiangu Pharmaceutical Co's Interest Coverage falls into.


SHSE:603896
61GF Score
Zhejiang Shouxiangu Pharmaceutical Co Ltd SHSE:603896
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zhejiang Shouxiangu Pharmaceutical 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.

Zhejiang Shouxiangu Pharmaceutical 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, Zhejiang Shouxiangu Pharmaceutical Co's Interest Expense was ¥-24.2 Mil. Its Operating Income was ¥123.9 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥403.5 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*123.896/-24.212
=5.12

Zhejiang Shouxiangu Pharmaceutical Co's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Zhejiang Shouxiangu Pharmaceutical Co's Interest Expense was ¥-7.2 Mil. Its Operating Income was ¥36.4 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥407.7 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*36.429/-7.218
=5.05

* 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 5.05 mean?
Zhejiang Shouxiangu Pharmaceutical Co (SHSE:603896) has a Interest Coverage of 5.05 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Zhejiang Shouxiangu Pharmaceutical Co and its competitors. This is 69% below median its historical median of 16.50. Over the past decade, Zhejiang Shouxiangu Pharmaceutical Co's Interest Coverage has ranged from 3.71 to 116.43. According to the industry distribution chart, Zhejiang Shouxiangu Pharmaceutical Co ranks #328 out of 376 companies in the Biotechnology industry, placing it in the top 87.2%.
Is Zhejiang Shouxiangu Pharmaceutical Co's Interest Coverage too high?
Zhejiang Shouxiangu Pharmaceutical Co's current Interest Coverage of 5.05 is 69% below median its 10-year median of 16.50. Over the past 10 years, this metric has ranged from a low of 3.71 to a high of 116.43. The Biotechnology industry median Interest Coverage is 106.14. Zhejiang Shouxiangu Pharmaceutical Co's value of 5.05 is 95.2% below this industry median. Based on the distribution chart, Zhejiang Shouxiangu Pharmaceutical Co ranks #328 out of 376 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Zhejiang Shouxiangu Pharmaceutical Co has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Shouxiangu Pharmaceutical Co's Interest Coverage compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Zhejiang Shouxiangu Pharmaceutical Co ranks #328 out of 376 companies for Interest Coverage. This places Zhejiang Shouxiangu Pharmaceutical Co in the lower half of its industry. The industry median Interest Coverage is 106.14. Zhejiang Shouxiangu Pharmaceutical Co's value of 5.05 is 95.2% below this benchmark. Historically, Zhejiang Shouxiangu Pharmaceutical Co's own Interest Coverage has ranged from 3.71 to 116.43 over the past decade. While the company's 10-year median is 16.50 vs. the industry median of 106.14, Zhejiang Shouxiangu Pharmaceutical Co 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 a Biotechnology company?
The median Interest Coverage among Biotechnology companies is 106.14, based on 376 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. Zhejiang Shouxiangu Pharmaceutical Co's current Interest Coverage of 5.05 is 95.2% 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 Zhejiang Shouxiangu Pharmaceutical Co and its competitors. For the Biotechnology industry, the median Interest Coverage is 106.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Shouxiangu Pharmaceutical Co's current Interest Coverage is 5.05, which is 69% below median its own 10-year median of 16.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Shouxiangu Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Shouxiangu Pharmaceutical Co (SHSE:603896) is currently considered Possible Value Trap. The stock's GF Value™ is ¥22.84, compared to a current price of ¥14.63 — trading 35.9% below its estimated fair value. The current Interest Coverage is 5.05, which is 69% below median its 10-year median of 16.50 and 95.2% below the Biotechnology industry median of 106.14. Zhejiang Shouxiangu Pharmaceutical Co's overall GF Score™ is 61/100 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 Zhejiang Shouxiangu Pharmaceutical Co (SHSE:603896), the current Interest Coverage is 5.05 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 Zhejiang Shouxiangu Pharmaceutical Co (SHSE:603896) Overvalued in 2026?

Based on GuruFocus' analysis, Zhejiang Shouxiangu Pharmaceutical Co stock appears to be undervalued. The current stock price of ¥14.63 is trading 35.9% below its estimated GF Value™ of ¥22.84. GuruFocus considers Zhejiang Shouxiangu Pharmaceutical Co to be Possible Value Trap.

Key valuation signals for SHSE:603896:

  • Interest Coverage: 5.05 (69% below median its 10-year median of 16.50)
  • GF Value™: ¥22.84 vs. price of ¥14.63 (35.9% below fair value)
  • GF Score™: 61/100 with 5 warning signs
  • Industry Position: 95.2% below the Biotechnology median (#328 of 376)

No single metric tells the full story. See the SHSE:603896 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zhejiang Shouxiangu Pharmaceutical Co Business Description

Address 12th Huang Long Road, Wuyi County, Zhejiang Province, Wuyi, CHN, 321200
Zhejiang Shouxiangu Pharmaceutical Co Ltd is a Chinese pharmaceutical company.
61GF Score

Get the complete analysis for SHSE:603896

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

¥14.63
Price
¥22.84
GF Value