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Cathay BiotechSHSE:688065 -0.02%92 Interest Coverage is 139.90 as of Mar. 2026, which is 155% above its 10-year median of 54.97. GuruFocus rates SHSE:688065 with a GF Score™ of 92/100 and a GF Value™ of ¥50.12 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,233 Chemicals companies, Cathay Biotech ranks better than 89.7% 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. Cathay Biotech's
Operating Income
for the
three
months ended in Mar. 2026 was ¥216 Mil. Cathay Biotech's Interest Expense for the
three
months ended in Mar. 2026 was ¥-2 Mil.
Cathay Biotech's interest coverage for the quarter that ended in Mar. 2026 was 139.90.
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. Cathay Biotech Inc has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Cathay Biotech's Interest Coverage or its related term are showing as below:
SHSE:688065'
s Interest Coverage Range Over the Past 10 Years
Min: 8.5 Med: 54.97 Max: No Debt
Current: 222.77
SHSE:688065's Interest Coverage is ranked better than 89.7% of 1233
companies
in the Chemicals industry
Industry Median: 10.26
vs SHSE:688065: 222.77
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 .
Cathay Biotech Interest Coverage Related Terms
Cathay Biotech Interest Coverage Historical Data
* Premium members only.
The historical data trend for Cathay Biotech'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.
For the Chemicals subindustry, Cathay Biotech'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.
Cathay Biotech Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Cathay Biotech's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Cathay Biotech's Interest Coverage falls into.
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.
Cathay Biotech (SHSE:688065) has a Interest Coverage of 139.90 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cathay Biotech and its competitors. This is 155% above median its historical median of 54.97. Over the past decade, Cathay Biotech's Interest Coverage has ranged from 8.50 to 10,000.00. According to the industry distribution chart, Cathay Biotech ranks #127 out of 1233 companies in the Chemicals industry, placing it in the top 10.3%.
Is Cathay Biotech's Interest Coverage too high?
Cathay Biotech's current Interest Coverage of 139.90 is 155% above median its 10-year median of 54.97. Over the past 10 years, this metric has ranged from a low of 8.50 to a high of 10,000.00. The Chemicals industry median Interest Coverage is 10.26. Cathay Biotech's value of 139.90 is 1263.5% above this industry median. Based on the distribution chart, Cathay Biotech ranks #127 out of 1233 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Cathay Biotech has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cathay Biotech's Interest Coverage compare to DOW?
According to the Chemicals industry distribution chart, Cathay Biotech ranks #127 out of 1233 companies for Interest Coverage. This places Cathay Biotech in the top 10% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 10.26. Cathay Biotech's value of 139.90 is 1263.5% above this benchmark. Historically, Cathay Biotech's own Interest Coverage has ranged from 8.50 to 10,000.00 over the past decade. While the company's 10-year median is 54.97 vs. the industry median of 10.26, Cathay Biotech 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.26, 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. Cathay Biotech's current Interest Coverage of 139.90 is 1263.5% 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 Cathay Biotech and its competitors. For the Chemicals industry, the median Interest Coverage is 10.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Biotech's current Interest Coverage is 139.90, which is 155% above median its own 10-year median of 54.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Biotech stock overvalued right now?
Based on GuruFocus' analysis, Cathay Biotech (SHSE:688065) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥50.12, compared to a current price of ¥42.75 — trading 14.7% below its estimated fair value. The current Interest Coverage is 139.90, which is 155% above median its 10-year median of 54.97 and 1263.5% above the Chemicals industry median of 10.26. Cathay Biotech's overall GF Score™ is 92/100 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 Cathay Biotech (SHSE:688065), the current Interest Coverage is 139.90 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 Cathay Biotech (SHSE:688065) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Biotech stock appears to be undervalued.
The current stock price of ¥42.75 is trading 14.7% below its estimated GF Value™ of ¥50.12.
GuruFocus considers Cathay Biotech to be Modestly Undervalued.
Key valuation signals for SHSE:688065:
Interest Coverage: 139.90 (155% above median its 10-year median of 54.97)
GF Value™: ¥50.12 vs. price of ¥42.75 (14.7% below fair value)
Industry Position: 1263.5% above the Chemicals median (#127 of 1233)
No single metric tells the full story. See the SHSE:688065 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Biotech Inc is engaged in research, development, production, and sales of new bio-based materials. The company owns the TERRYL brand, which focuses on bio-based polyamide fibers for textiles, and ECOPENT, which serves the engineering materials market.
92GF Score
Get the complete analysis for SHSE:688065
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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