Zhejiang Fulai New Material Co (SHSE:605488) Interest Coverage: 6.33 (As of Mar. 2026) — 70% Below Median

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SHSE:605488 Zhejiang Fulai New Material Co Ltd SHSE:605488
78 GF Score
Price ¥27.67
GF Value ¥18.08
Valuation Significantly Overvalued
! 6 Warning Signs
View Full Analysis

What is Zhejiang Fulai New Material Co Interest Coverage?

Zhejiang Fulai New Material Co SHSE:605488 +0.62% 78 Interest Coverage is 6.33 as of Mar. 2026, which is 70% below its 10-year median of 21.18. GuruFocus rates SHSE:605488 with a GF Score™ of 78/100 and a GF Value™ of ¥18.08 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,233 Chemicals companies, Zhejiang Fulai New Material Co ranks worse than 67.32% 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 Fulai New Material Co's Operating Income for the three months ended in Mar. 2026 was ¥35 Mil. Zhejiang Fulai New Material Co's Interest Expense for the three months ended in Mar. 2026 was ¥-5 Mil. Zhejiang Fulai New Material Co's interest coverage for the quarter that ended in Mar. 2026 was 6.33. The higher the ratio, the stronger the company's financial strength is.

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

SHSE:605488' s Interest Coverage Range Over the Past 10 Years
Min: 3.83   Med: 21.18   Max: 117.58
Current: 4.72


SHSE:605488's Interest Coverage is ranked worse than
67.32% of 1233 companies
in the Chemicals industry
Industry Median: 10.13 vs SHSE:605488: 4.72

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 Fulai New Material Co  (SHSE:605488) 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 Fulai New Material Co Interest Coverage Related Terms


Zhejiang Fulai New Material Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Zhejiang Fulai New Material 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 Fulai New Material Co Interest Coverage Chart

Zhejiang Fulai New Material Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 117.58 43.17 5.02 3.83 4.76

Zhejiang Fulai New Material 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 6.52 5.81 4.74 2.29 6.33

SHSE:605488 vs LIN, SHW, ECL: Interest Coverage Comparison

For the Specialty Chemicals subindustry, Zhejiang Fulai New Material 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 Fulai New Material Co Interest Coverage vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Zhejiang Fulai New Material Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Zhejiang Fulai New Material Co's Interest Coverage falls into.


SHSE:605488
78GF Score
Zhejiang Fulai New Material Co Ltd SHSE:605488
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zhejiang Fulai New Material 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 Fulai New Material 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 Fulai New Material Co's Interest Expense was ¥-21 Mil. Its Operating Income was ¥101 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥422 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*101.084/-21.214
=4.76

Zhejiang Fulai New Material 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 Fulai New Material Co's Interest Expense was ¥-5 Mil. Its Operating Income was ¥35 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥435 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*34.584/-5.461
=6.33

* 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 6.33 mean?
Zhejiang Fulai New Material Co (SHSE:605488) has a Interest Coverage of 6.33 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Zhejiang Fulai New Material Co and its competitors. This is 70% below median its historical median of 21.18. Over the past decade, Zhejiang Fulai New Material Co's Interest Coverage has ranged from 3.83 to 117.58. According to the industry distribution chart, Zhejiang Fulai New Material Co ranks #830 out of 1233 companies in the Chemicals industry, placing it in the top 67.3%.
Is Zhejiang Fulai New Material Co's Interest Coverage too high?
Zhejiang Fulai New Material Co's current Interest Coverage of 6.33 is 70% below median its 10-year median of 21.18. Over the past 10 years, this metric has ranged from a low of 3.83 to a high of 117.58. The Chemicals industry median Interest Coverage is 10.13. Zhejiang Fulai New Material Co's value of 6.33 is 37.5% below this industry median. Based on the distribution chart, Zhejiang Fulai New Material Co ranks #830 out of 1233 companies in the Chemicals industry, which is below the industry midpoint. Overall, Zhejiang Fulai New Material Co has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Fulai New Material Co's Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, Zhejiang Fulai New Material Co ranks #830 out of 1233 companies for Interest Coverage. This places Zhejiang Fulai New Material Co in the lower half of its industry. The industry median Interest Coverage is 10.13. Zhejiang Fulai New Material Co's value of 6.33 is 37.5% below this benchmark. Historically, Zhejiang Fulai New Material Co's own Interest Coverage has ranged from 3.83 to 117.58 over the past decade. While the company's 10-year median is 21.18 vs. the industry median of 10.13, Zhejiang Fulai New Material 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.13, based on 1,233 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 Fulai New Material Co's current Interest Coverage of 6.33 is 37.5% 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 Fulai New Material Co and its competitors. For the Chemicals industry, the median Interest Coverage is 10.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Fulai New Material Co's current Interest Coverage is 6.33, which is 70% below median its own 10-year median of 21.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Fulai New Material Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Fulai New Material Co (SHSE:605488) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥18.08, compared to a current price of ¥27.67 — trading 53% above its estimated fair value. The current Interest Coverage is 6.33, which is 70% below median its 10-year median of 21.18 and 37.5% below the Chemicals industry median of 10.13. Zhejiang Fulai New Material Co's overall GF Score™ is 78/100 with 6 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 Fulai New Material Co (SHSE:605488), the current Interest Coverage is 6.33 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 Fulai New Material Co (SHSE:605488) Overvalued in 2026?

Based on GuruFocus' analysis, Zhejiang Fulai New Material Co stock appears to be overvalued. The current stock price of ¥27.67 is trading 53% above its estimated GF Value™ of ¥18.08. GuruFocus considers Zhejiang Fulai New Material Co to be Significantly Overvalued.

Key valuation signals for SHSE:605488:

  • Interest Coverage: 6.33 (70% below median its 10-year median of 21.18)
  • GF Value™: ¥18.08 vs. price of ¥27.67 (53% above fair value)
  • GF Score™: 78/100 with 6 warning signs
  • Industry Position: 37.5% below the Chemicals median (#830 of 1233)

No single metric tells the full story. See the SHSE:605488 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zhejiang Fulai New Material Co Business Description

Address No. 17, Yinhe Road, Yaozhuang Town, Jiashan County, Zhejiang Province, Jiaxing, CHN, 314100
Zhejiang Fulai New Material Co Ltd is engaged in the development, production and sales of functional coating composite materials. It mainly produces advertising inkjet printing materials, label and logo printing materials, electronic-grade functional materials and other products. It owns brands such as Fleisant, Meshen, and Ori Digital.
78GF Score

Get the complete analysis for SHSE:605488

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

¥27.67
Price
¥18.08
GF Value