Xiamen Leading Optics CoSHSE:605118 -5.37%87 Interest Coverage is 473.94 as of Mar. 2026, which is 11% below its 10-year median of 533.71. GuruFocus rates SHSE:605118 with a GF Score™ of 87/100 and a GF Value™ of ¥27.97 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,672 Hardware companies, Xiamen Leading Optics Co ranks better than 92.52% 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. Xiamen Leading Optics Co's
Operating Income
for the
three
months ended in Mar. 2026 was ¥89.6 Mil. Xiamen Leading Optics Co's Interest Expense for the
three
months ended in Mar. 2026 was ¥-0.2 Mil.
Xiamen Leading Optics Co's interest coverage for the quarter that ended in Mar. 2026 was 473.94.
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. Xiamen Leading Optics Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Xiamen Leading Optics Co's Interest Coverage or its related term are showing as below:
SHSE:605118'
s Interest Coverage Range Over the Past 10 Years
Min: 153.27 Med: 533.71 Max: No Debt
Current: 550.36
SHSE:605118's Interest Coverage is ranked better than 92.52% of 1672
companies
in the Hardware industry
Industry Median: 13.675
vs SHSE:605118: 550.36
Xiamen Leading Optics Co (SHSE:605118) 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 .
Xiamen Leading Optics Co Interest Coverage Related Terms
Xiamen Leading Optics Co 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:605118 vs APH, GLW: Interest Coverage Comparison
For the Electronic Components subindustry, Xiamen Leading Optics 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.
Xiamen Leading Optics Co Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Xiamen Leading Optics Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Xiamen Leading Optics Co's Interest Coverage falls into.
Xiamen Leading Optics 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:
* 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.
Xiamen Leading Optics Co (SHSE:605118) has a Interest Coverage of 473.94 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Xiamen Leading Optics Co and its competitors. This is 11% below median its historical median of 533.71. Over the past decade, Xiamen Leading Optics Co's Interest Coverage has ranged from 153.27 to 10,000.00. According to the industry distribution chart, Xiamen Leading Optics Co ranks #125 out of 1672 companies in the Hardware industry, placing it in the top 7.5%.
Is Xiamen Leading Optics Co's Interest Coverage too high?
Xiamen Leading Optics Co's current Interest Coverage of 473.94 is 11% below median its 10-year median of 533.71. Over the past 10 years, this metric has ranged from a low of 153.27 to a high of 10,000.00. The Hardware industry median Interest Coverage is 13.68. Xiamen Leading Optics Co's value of 473.94 is 3365.7% above this industry median. Based on the distribution chart, Xiamen Leading Optics Co ranks #125 out of 1672 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Xiamen Leading Optics Co has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Xiamen Leading Optics Co's Interest Coverage compare to APH and GLW?
According to the Hardware industry distribution chart, Xiamen Leading Optics Co ranks #125 out of 1672 companies for Interest Coverage. This places Xiamen Leading Optics Co in the top 8% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 13.68. Xiamen Leading Optics Co's value of 473.94 is 3365.7% above this benchmark. Historically, Xiamen Leading Optics Co's own Interest Coverage has ranged from 153.27 to 10,000.00 over the past decade. While the company's 10-year median is 533.71 vs. the industry median of 13.68, Xiamen Leading Optics 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 a Hardware company?
The median Interest Coverage among Hardware companies is 13.68, based on 1,672 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. Xiamen Leading Optics Co's current Interest Coverage of 473.94 is 3365.7% 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 Xiamen Leading Optics Co and its competitors. For the Hardware industry, the median Interest Coverage is 13.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiamen Leading Optics Co's current Interest Coverage is 473.94, which is 11% below median its own 10-year median of 533.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiamen Leading Optics Co stock overvalued right now?
Based on GuruFocus' analysis, Xiamen Leading Optics Co (SHSE:605118) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥27.97, compared to a current price of ¥34.74 — trading 24.2% above its estimated fair value. The current Interest Coverage is 473.94, which is 11% below median its 10-year median of 533.71 and 3365.7% above the Hardware industry median of 13.68. Xiamen Leading Optics Co's overall GF Score™ is 87/100 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 Xiamen Leading Optics Co (SHSE:605118), the current Interest Coverage is 473.94 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 Xiamen Leading Optics Co (SHSE:605118) Overvalued in 2026?
Based on GuruFocus' analysis, Xiamen Leading Optics Co stock appears to be overvalued.
The current stock price of ¥34.74 is trading 24.2% above its estimated GF Value™ of ¥27.97.
GuruFocus considers Xiamen Leading Optics Co to be Modestly Overvalued.
Key valuation signals for SHSE:605118:
Interest Coverage: 473.94 (11% below median its 10-year median of 533.71)
GF Value™: ¥27.97 vs. price of ¥34.74 (24.2% above fair value)
Industry Position: 3365.7% above the Hardware median (#125 of 1672)
No single metric tells the full story. See the SHSE:605118 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xiamen Leading Optics Co Ltd is engaged in design, production and sales of optical lenses. The company's products include Surveillance Lens; Automotives Lens; Machine Vision Lens; ITS Lens; Low Distortion Lens; Consumer Imaging; and Panoramic Lens. Its products are used in multiple fields of application including security surveillance, medical and biological studies and researches, intelligent traffic systems, video conference, intelligent home security, sports camera and many more.
87GF Score
Get the complete analysis for SHSE:605118
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