Hefei I-TEK OptoElectronics Co (SHSE:688610) Interest Coverage: 176.78 (As of Jun. 2026) — 418% Above 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:688610 Hefei I-TEK OptoElectronics Co Ltd SHSE:688610
76 GF Score
Price ¥149.46
GF Value ¥102.41
Valuation Significantly Overvalued
! 3 Warning Signs
View Full Analysis

What is Hefei I-TEK OptoElectronics Co Interest Coverage?

Hefei I-TEK OptoElectronics Co SHSE:688610 -5.10% 76 Interest Coverage is 176.78 as of Jun. 2026, which is 418% above its 10-year median of 34.10. GuruFocus rates SHSE:688610 with a GF Score™ of 76/100 and a GF Value™ of ¥102.41 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,671 Hardware companies, Hefei I-TEK OptoElectronics Co ranks better than 77.56% 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. Hefei I-TEK OptoElectronics Co's Operating Income for the three months ended in Jun. 2026 was ¥55.2 Mil. Hefei I-TEK OptoElectronics Co's Interest Expense for the three months ended in Jun. 2026 was ¥-0.3 Mil. Hefei I-TEK OptoElectronics Co's interest coverage for the quarter that ended in Jun. 2026 was 176.78. 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. Hefei I-TEK OptoElectronics Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Hefei I-TEK OptoElectronics Co's Interest Coverage or its related term are showing as below:

SHSE:688610' s Interest Coverage Range Over the Past 10 Years
Min: 6.04   Med: 34.1   Max: 255.79
Current: 75.62


SHSE:688610's Interest Coverage is ranked better than
77.56% of 1671 companies
in the Hardware industry
Industry Median: 15.23 vs SHSE:688610: 75.62

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


Hefei I-TEK OptoElectronics Co  (SHSE:688610) 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 .


Hefei I-TEK OptoElectronics Co Interest Coverage Related Terms


Hefei I-TEK OptoElectronics Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Hefei I-TEK OptoElectronics 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.

Hefei I-TEK OptoElectronics Co Interest Coverage Chart

Hefei I-TEK OptoElectronics Co Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial 42.31 255.79 6.04 9.46 60.81

Hefei I-TEK OptoElectronics Co Quarterly Data
Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 146.52 92.45 10.87 50.07 176.78

SHSE:688610 vs APH, GLW, TEL: Interest Coverage Comparison

For the Electronic Components subindustry, Hefei I-TEK OptoElectronics 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.


Hefei I-TEK OptoElectronics Co Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, Hefei I-TEK OptoElectronics Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hefei I-TEK OptoElectronics Co's Interest Coverage falls into.


SHSE:688610
76GF Score
Hefei I-TEK OptoElectronics Co Ltd SHSE:688610
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hefei I-TEK OptoElectronics 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.

Hefei I-TEK OptoElectronics 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, Hefei I-TEK OptoElectronics Co's Interest Expense was ¥-1.0 Mil. Its Operating Income was ¥58.3 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥1.3 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*58.258/-0.958
=60.81

Hefei I-TEK OptoElectronics Co's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, Hefei I-TEK OptoElectronics Co's Interest Expense was ¥-0.3 Mil. Its Operating Income was ¥55.2 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥1.4 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*55.155/-0.312
=176.78

* 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 176.78 mean?
Hefei I-TEK OptoElectronics Co (SHSE:688610) has a Interest Coverage of 176.78 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hefei I-TEK OptoElectronics Co and its competitors. This is 418% above median its historical median of 34.10. Over the past decade, Hefei I-TEK OptoElectronics Co's Interest Coverage has ranged from 6.04 to 255.79. According to the industry distribution chart, Hefei I-TEK OptoElectronics Co ranks #375 out of 1671 companies in the Hardware industry, placing it in the top 22.4%.
Is Hefei I-TEK OptoElectronics Co's Interest Coverage too high?
Hefei I-TEK OptoElectronics Co's current Interest Coverage of 176.78 is 418% above median its 10-year median of 34.10. Over the past 10 years, this metric has ranged from a low of 6.04 to a high of 255.79. The Hardware industry median Interest Coverage is 15.23. Hefei I-TEK OptoElectronics Co's value of 176.78 is 1060.7% above this industry median. Based on the distribution chart, Hefei I-TEK OptoElectronics Co ranks #375 out of 1671 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Hefei I-TEK OptoElectronics Co has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hefei I-TEK OptoElectronics Co's Interest Coverage compare to APH and GLW?
According to the Hardware industry distribution chart, Hefei I-TEK OptoElectronics Co ranks #375 out of 1671 companies for Interest Coverage. This places Hefei I-TEK OptoElectronics Co in the top 22% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 15.23. Hefei I-TEK OptoElectronics Co's value of 176.78 is 1060.7% above this benchmark. Historically, Hefei I-TEK OptoElectronics Co's own Interest Coverage has ranged from 6.04 to 255.79 over the past decade. While the company's 10-year median is 34.10 vs. the industry median of 15.23, Hefei I-TEK OptoElectronics Co 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 Hardware company?
The median Interest Coverage among Hardware companies is 15.23, based on 1,671 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. Hefei I-TEK OptoElectronics Co's current Interest Coverage of 176.78 is 1060.7% 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 Hefei I-TEK OptoElectronics Co and its competitors. For the Hardware industry, the median Interest Coverage is 15.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hefei I-TEK OptoElectronics Co's current Interest Coverage is 176.78, which is 418% above median its own 10-year median of 34.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hefei I-TEK OptoElectronics Co stock overvalued right now?
Based on GuruFocus' analysis, Hefei I-TEK OptoElectronics Co (SHSE:688610) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥102.41, compared to a current price of ¥149.46 — trading 45.9% above its estimated fair value. The current Interest Coverage is 176.78, which is 418% above median its 10-year median of 34.10 and 1060.7% above the Hardware industry median of 15.23. Hefei I-TEK OptoElectronics Co's overall GF Score™ is 76/100 with 3 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 Hefei I-TEK OptoElectronics Co (SHSE:688610), the current Interest Coverage is 176.78 as of Jun. 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 Hefei I-TEK OptoElectronics Co (SHSE:688610) Overvalued in 2026?

Based on GuruFocus' analysis, Hefei I-TEK OptoElectronics Co stock appears to be overvalued. The current stock price of ¥149.46 is trading 45.9% above its estimated GF Value™ of ¥102.41. GuruFocus considers Hefei I-TEK OptoElectronics Co to be Significantly Overvalued.

Key valuation signals for SHSE:688610:

  • Interest Coverage: 176.78 (418% above median its 10-year median of 34.10)
  • GF Value™: ¥102.41 vs. price of ¥149.46 (45.9% above fair value)
  • GF Score™: 76/100 with 3 warning signs
  • Industry Position: 1060.7% above the Hardware median (#375 of 1671)

No single metric tells the full story. See the SHSE:688610 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hefei I-TEK OptoElectronics Co Business Description

Address Wangjiang West Road, 3rd Floor, Building J2, Phase II, Zhongan Chuanggu Science and Technology Park, High-tech Zone, Anhui, Hefei, CHN, 230088
Hefei I-TEK OptoElectronics Co Ltd is a national high-tech enterprise specializing in research & development, production and sales of high-end industrial imaging components. Echo Optoelectronics has always focused on technological innovation and adhered to the positioning of high-end products. It is a high-end domestic brand pioneer enterprise with independent innovation in the field of machine vision.
76GF Score

Get the complete analysis for SHSE:688610

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

¥149.46
Price
¥102.41
GF Value