Wetown Electric Group Co (SHSE:688226) Interest Coverage: 2.26 (As of Mar. 2026) — 62% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

SHSE:688226 Wetown Electric Group Co Ltd SHSE:688226
86 GF Score
Price ¥29.24
GF Value ¥35.88
Valuation Modestly Undervalued
! 10 Warning Signs
View Full Analysis

What is Wetown Electric Group Co Interest Coverage?

Wetown Electric Group Co SHSE:688226 +0.97% 86 Interest Coverage is 2.26 as of Mar. 2026, which is 62% below its 10-year median of 6.02. GuruFocus rates SHSE:688226 with a GF Score™ of 86/100 and a GF Value™ of ¥35.88 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 2,334 Industrial Products companies, Wetown Electric Group Co ranks worse than 84.66% 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. Wetown Electric Group Co's Operating Income for the three months ended in Mar. 2026 was ¥40 Mil. Wetown Electric Group Co's Interest Expense for the three months ended in Mar. 2026 was ¥-18 Mil. Wetown Electric Group Co's interest coverage for the quarter that ended in Mar. 2026 was 2.26. 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. Wetown Electric Group Co Ltd interest coverage is 2.6, which is low.

The historical rank and industry rank for Wetown Electric Group Co's Interest Coverage or its related term are showing as below:

SHSE:688226' s Interest Coverage Range Over the Past 10 Years
Min: 2.6   Med: 6.02   Max: 66.46
Current: 2.6


SHSE:688226's Interest Coverage is ranked worse than
84.66% of 2334 companies
in the Industrial Products industry
Industry Median: 14.64 vs SHSE:688226: 2.60

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


Wetown Electric Group Co  (SHSE:688226) 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 .


Wetown Electric Group Co Interest Coverage Related Terms


Wetown Electric Group Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Wetown Electric Group 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.

Wetown Electric Group Co Interest Coverage Chart

Wetown Electric Group 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 5.95 6.09 6.92 4.71 2.62

Wetown Electric Group 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 2.25 1.71 3.02 3.96 2.26

SHSE:688226 vs VRT, BE: Interest Coverage Comparison

For the Electrical Equipment & Parts subindustry, Wetown Electric Group 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.


Wetown Electric Group Co Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Wetown Electric Group Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Wetown Electric Group Co's Interest Coverage falls into.


SHSE:688226
86GF Score
Wetown Electric Group Co Ltd SHSE:688226
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Wetown Electric Group 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.

Wetown Electric Group 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, Wetown Electric Group Co's Interest Expense was ¥-45 Mil. Its Operating Income was ¥118 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥806 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*117.544/-44.849
=2.62

Wetown Electric Group Co's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Wetown Electric Group Co's Interest Expense was ¥-18 Mil. Its Operating Income was ¥40 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥1,009 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*39.801/-17.588
=2.26

* 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 2.26 mean?
Wetown Electric Group Co (SHSE:688226) has a Interest Coverage of 2.26 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Wetown Electric Group Co and its competitors. This is 62% below median its historical median of 6.02. Over the past decade, Wetown Electric Group Co's Interest Coverage has ranged from 2.60 to 66.46. According to the industry distribution chart, Wetown Electric Group Co ranks #1976 out of 2334 companies in the Industrial Products industry, placing it in the top 84.7%.
Is Wetown Electric Group Co's Interest Coverage too high?
Wetown Electric Group Co's current Interest Coverage of 2.26 is 62% below median its 10-year median of 6.02. Over the past 10 years, this metric has ranged from a low of 2.60 to a high of 66.46. The Industrial Products industry median Interest Coverage is 14.64. Wetown Electric Group Co's value of 2.26 is 84.6% below this industry median. Based on the distribution chart, Wetown Electric Group Co ranks #1976 out of 2334 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Wetown Electric Group Co has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Wetown Electric Group Co's Interest Coverage compare to VRT and BE?
According to the Industrial Products industry distribution chart, Wetown Electric Group Co ranks #1976 out of 2334 companies for Interest Coverage. This places Wetown Electric Group Co in the lower half of its industry. The industry median Interest Coverage is 14.64. Wetown Electric Group Co's value of 2.26 is 84.6% below this benchmark. Historically, Wetown Electric Group Co's own Interest Coverage has ranged from 2.60 to 66.46 over the past decade. While the company's 10-year median is 6.02 vs. the industry median of 14.64, Wetown Electric Group 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 an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.64, based on 2,334 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. Wetown Electric Group Co's current Interest Coverage of 2.26 is 84.6% 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 Wetown Electric Group Co and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wetown Electric Group Co's current Interest Coverage is 2.26, which is 62% below median its own 10-year median of 6.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wetown Electric Group Co stock overvalued right now?
Based on GuruFocus' analysis, Wetown Electric Group Co (SHSE:688226) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥35.88, compared to a current price of ¥29.24 — trading 18.5% below its estimated fair value. The current Interest Coverage is 2.26, which is 62% below median its 10-year median of 6.02 and 84.6% below the Industrial Products industry median of 14.64. Wetown Electric Group Co's overall GF Score™ is 86/100 with 10 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 Wetown Electric Group Co (SHSE:688226), the current Interest Coverage is 2.26 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 Wetown Electric Group Co (SHSE:688226) Overvalued in 2026?

Based on GuruFocus' analysis, Wetown Electric Group Co stock appears to be undervalued. The current stock price of ¥29.24 is trading 18.5% below its estimated GF Value™ of ¥35.88. GuruFocus considers Wetown Electric Group Co to be Modestly Undervalued.

Key valuation signals for SHSE:688226:

  • Interest Coverage: 2.26 (62% below median its 10-year median of 6.02)
  • GF Value™: ¥35.88 vs. price of ¥29.24 (18.5% below fair value)
  • GF Score™: 86/100 with 10 warning signs
  • Industry Position: 84.6% below the Industrial Products median (#1976 of 2334)

No single metric tells the full story. See the SHSE:688226 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Wetown Electric Group Co Business Description

Address No. 1, Nanzi Road, Xinba Science and Technology Park, Jiangsu Province, Yangzhong, CHN, 212211
Wetown Electric Group Co Ltd is engaged in the development and manufacturing of electrical products. it offers product such as high and low voltage busbars; complete sets of electrical and intelligent components; copper and aluminum materials and tinned copper tape; bridges and hangers and others.
86GF Score

Get the complete analysis for SHSE:688226

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

¥29.24
Price
¥35.88
GF Value