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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. Zhangjiagang Guangda Special Material Co's
Operating Income
for the
three
months ended in Mar. 2026 was ¥55 Mil. Zhangjiagang Guangda Special Material Co's Interest Expense for the
three
months ended in Mar. 2026 was ¥-35 Mil.
Zhangjiagang Guangda Special Material Co's interest coverage for the quarter that ended in Mar. 2026 was 1.56.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Zhangjiagang Guangda Special Material Co Ltd interest coverage is 2.68, which is low.
Zhangjiagang Guangda Special Material Co (SHSE:688186) 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 .
Zhangjiagang Guangda Special Material Co Interest Coverage Related Terms
Zhangjiagang Guangda Special Material 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.
Zhangjiagang Guangda Special Material Co Interest Coverage Chart
Zhangjiagang Guangda Special Material Co Annual Data
SHSE:688186 vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Zhangjiagang Guangda Special 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.
Zhangjiagang Guangda Special Material Co Interest Coverage vs Steel Industry
Zhangjiagang Guangda Special 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:
* 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.
Zhangjiagang Guangda Special Material Co (SHSE:688186) has a Interest Coverage of 1.56 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Zhangjiagang Guangda Special Material Co and its competitors. This is 53% below median its historical median of 3.31. Over the past decade, Zhangjiagang Guangda Special Material Co's Interest Coverage has ranged from 2.01 to 5.68. According to the industry distribution chart, Zhangjiagang Guangda Special Material Co ranks #309 out of 457 companies in the Steel industry, placing it in the top 67.6%.
Is Zhangjiagang Guangda Special Material Co's Interest Coverage too high?
Zhangjiagang Guangda Special Material Co's current Interest Coverage of 1.56 is 53% below median its 10-year median of 3.31. Over the past 10 years, this metric has ranged from a low of 2.01 to a high of 5.68. The Steel industry median Interest Coverage is 4.39. Zhangjiagang Guangda Special Material Co's value of 1.56 is 64.5% below this industry median. Based on the distribution chart, Zhangjiagang Guangda Special Material Co ranks #309 out of 457 companies in the Steel industry, which is below the industry midpoint. Overall, Zhangjiagang Guangda Special Material Co has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zhangjiagang Guangda Special Material Co's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Zhangjiagang Guangda Special Material Co ranks #309 out of 457 companies for Interest Coverage. This places Zhangjiagang Guangda Special Material Co in the lower half of its industry. The industry median Interest Coverage is 4.39. Zhangjiagang Guangda Special Material Co's value of 1.56 is 64.5% below this benchmark. Historically, Zhangjiagang Guangda Special Material Co's own Interest Coverage has ranged from 2.01 to 5.68 over the past decade. While the company's 10-year median is 3.31 vs. the industry median of 4.39, Zhangjiagang Guangda Special 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 Steel company?
The median Interest Coverage among Steel companies is 4.39, based on 457 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. Zhangjiagang Guangda Special Material Co's current Interest Coverage of 1.56 is 64.5% 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 Zhangjiagang Guangda Special Material Co and its competitors. For the Steel industry, the median Interest Coverage is 4.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhangjiagang Guangda Special Material Co's current Interest Coverage is 1.56, which is 53% below median its own 10-year median of 3.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhangjiagang Guangda Special Material Co stock overvalued right now?
Based on GuruFocus' analysis, Zhangjiagang Guangda Special Material Co (SHSE:688186) is currently considered Possible Value Trap. The stock's GF Value™ is ¥22.61, compared to a current price of ¥13.57 — trading 40% below its estimated fair value. The current Interest Coverage is 1.56, which is 53% below median its 10-year median of 3.31 and 64.5% below the Steel industry median of 4.39. Zhangjiagang Guangda Special Material Co's overall GF Score™ is 69/100 with 9 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 Zhangjiagang Guangda Special Material Co (SHSE:688186), the current Interest Coverage is 1.56 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 Zhangjiagang Guangda Special Material Co (SHSE:688186) Overvalued in 2026?
Based on GuruFocus' analysis, Zhangjiagang Guangda Special Material Co stock appears to be undervalued.
The current stock price of ¥13.57 is trading 40% below its estimated GF Value™ of ¥22.61.
GuruFocus considers Zhangjiagang Guangda Special Material Co to be Possible Value Trap.
Key valuation signals for SHSE:688186:
Interest Coverage: 1.56 (53% below median its 10-year median of 3.31)
GF Value™: ¥22.61 vs. price of ¥13.57 (40% below fair value)
Industry Position: 64.5% below the Steel median (#309 of 457)
No single metric tells the full story. See the SHSE:688186 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhangjiagang Guangda Special Material Co Business Description
Zhangjiagang Guangda Special Material Co Ltd is engaged in production and sale of special steel materials. The company's products include various types of castings and forgings and machine accessories: such as forged round bar, die and tool steel, wind power spindle, heavy load gear motor shaft, high pressure boiler pipe, roller, oil mechanical driller, tube-shaped forging, die block, ring forging, disk-shaped forging and all kinds of abnormal forgings. Its products are used in various industries such as wind power, chemical engineering, machinery, automobile, vessel, power station, metallurgy, mining and petrochemical.
69GF Score
Get the complete analysis for SHSE:688186
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