Ben Graham prefers companies' interest coverage to be at least 5. Southchip Semiconductor Technology (Shanghai) Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
SHSE:688484'
s Interest Coverage Range Over the Past 10 Years
Min: 72.64 Med: 163.36 Max: 691.71
Current: 72.64
SHSE:688484's Interest Coverage is ranked better than 69.07% of 637
companies
in the Semiconductors industry
Industry Median: 20.5
vs SHSE:688484: 72.64
Southchip Semiconductor Technology (Shanghai) Co (SHSE:688484) 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 .
Southchip Semiconductor Technology (Shanghai) Co Interest Coverage Related Terms
Southchip Semiconductor Technology (Shanghai) 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.
Southchip Semiconductor Technology (Shanghai) Co Interest Coverage Chart
Southchip Semiconductor Technology (Shanghai) Co Annual Data
SHSE:688484 vs NVDA, AVGO, MU: Interest Coverage Comparison
For the Semiconductors subindustry, Southchip Semiconductor Technology (Shanghai) 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.
Southchip Semiconductor Technology (Shanghai) Co Interest Coverage vs Semiconductors Industry
Southchip Semiconductor Technology (Shanghai) 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.
Southchip Semiconductor Technology (Shanghai) Co (SHSE:688484) has a Interest Coverage of 7.49 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Southchip Semiconductor Technology (Shanghai) Co and its competitors. This is 95% below median its historical median of 163.36. Over the past decade, Southchip Semiconductor Technology (Shanghai) Co's Interest Coverage has ranged from 72.64 to 691.71. According to the industry distribution chart, Southchip Semiconductor Technology (Shanghai) Co ranks #197 out of 637 companies in the Semiconductors industry, placing it in the top 30.9%.
Is Southchip Semiconductor Technology (Shanghai) Co's Interest Coverage too high?
Southchip Semiconductor Technology (Shanghai) Co's current Interest Coverage of 7.49 is 95% below median its 10-year median of 163.36. Over the past 10 years, this metric has ranged from a low of 72.64 to a high of 691.71. The Semiconductors industry median Interest Coverage is 20.50. Southchip Semiconductor Technology (Shanghai) Co's value of 7.49 is 63.5% below this industry median. Based on the distribution chart, Southchip Semiconductor Technology (Shanghai) Co ranks #197 out of 637 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Southchip Semiconductor Technology (Shanghai) Co has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Southchip Semiconductor Technology (Shanghai) Co's Interest Coverage compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Southchip Semiconductor Technology (Shanghai) Co ranks #197 out of 637 companies for Interest Coverage. This puts Southchip Semiconductor Technology (Shanghai) Co in the upper half of its industry. The industry median Interest Coverage is 20.50. Southchip Semiconductor Technology (Shanghai) Co's value of 7.49 is 63.5% below this benchmark. Historically, Southchip Semiconductor Technology (Shanghai) Co's own Interest Coverage has ranged from 72.64 to 691.71 over the past decade. While the company's 10-year median is 163.36 vs. the industry median of 20.50, Southchip Semiconductor Technology (Shanghai) 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 Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.50, based on 637 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. Southchip Semiconductor Technology (Shanghai) Co's current Interest Coverage of 7.49 is 63.5% 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 Southchip Semiconductor Technology (Shanghai) Co and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southchip Semiconductor Technology (Shanghai) Co's current Interest Coverage is 7.49, which is 95% below median its own 10-year median of 163.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southchip Semiconductor Technology (Shanghai) Co stock overvalued right now?
Based on GuruFocus' analysis, Southchip Semiconductor Technology (Shanghai) Co (SHSE:688484) is currently considered Possible Value Trap. The stock's GF Value™ is ¥66.02, compared to a current price of ¥42.80 — trading 35.2% below its estimated fair value. The current Interest Coverage is 7.49, which is 95% below median its 10-year median of 163.36 and 63.5% below the Semiconductors industry median of 20.50. Southchip Semiconductor Technology (Shanghai) Co's overall GF Score™ is 60/100 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 Southchip Semiconductor Technology (Shanghai) Co (SHSE:688484), the current Interest Coverage is 7.49 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 Southchip Semiconductor Technology (Shanghai) Co (SHSE:688484) Overvalued in 2026?
Based on GuruFocus' analysis, Southchip Semiconductor Technology (Shanghai) Co stock appears to be undervalued.
The current stock price of ¥42.80 is trading 35.2% below its estimated GF Value™ of ¥66.02.
GuruFocus considers Southchip Semiconductor Technology (Shanghai) Co to be Possible Value Trap.
Key valuation signals for SHSE:688484:
Interest Coverage: 7.49 (95% below median its 10-year median of 163.36)
GF Value™: ¥66.02 vs. price of ¥42.80 (35.2% below fair value)
Industry Position: 63.5% below the Semiconductors median (#197 of 637)
No single metric tells the full story. See the SHSE:688484 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southchip Semiconductor Technology (Shanghai) Co Business Description
Southchip Semiconductor Technology (Shanghai) Co Ltd is engaged in the R&D, design and sales of analog and embedded chips, power and battery management. The company's products include Automotive Products, DC-DC Converters, AC-DC Converters, USB Type-C & Power Delivery, PMIC, Charging Management, and Battery Management Solution. It provides solutions to automotive industry, industrial control and consumer electronics.
60GF Score
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