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. Semiconductor Manufacturing International's
Operating Income
for the
three
months ended in Mar. 2026 was ¥1,705 Mil. Semiconductor Manufacturing International's Interest Expense for the
three
months ended in Mar. 2026 was ¥-632 Mil.
Semiconductor Manufacturing International's interest coverage for the quarter that ended in Mar. 2026 was 2.70.
The higher the ratio, the stronger the company's financial strength is.
SHSE:688981'
s Interest Coverage Range Over the Past 10 Years
Min: 0.23 Med: 3.11 Max: 14.25
Current: 2.52
SHSE:688981's Interest Coverage is ranked worse than 85.42% of 638
companies
in the Semiconductors industry
Industry Median: 20.225
vs SHSE:688981: 2.52
Semiconductor Manufacturing International (SHSE:688981) 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 .
Semiconductor Manufacturing International Interest Coverage Related Terms
Semiconductor Manufacturing International 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.
Semiconductor Manufacturing International Interest Coverage Chart
Semiconductor Manufacturing International Annual Data
SHSE:688981 vs NVDA, AVGO, MU: Interest Coverage Comparison
For the Semiconductors subindustry, Semiconductor Manufacturing International'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.
Semiconductor Manufacturing International Interest Coverage vs Semiconductors Industry
Semiconductor Manufacturing International 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.
Semiconductor Manufacturing International (SHSE:688981) has a Interest Coverage of 2.70 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Semiconductor Manufacturing International and its competitors. This is 13% below median its historical median of 3.11. Over the past decade, Semiconductor Manufacturing International's Interest Coverage has ranged from 0.23 to 14.25. According to the industry distribution chart, Semiconductor Manufacturing International ranks #545 out of 638 companies in the Semiconductors industry, placing it in the top 85.4%.
Is Semiconductor Manufacturing International's Interest Coverage too high?
Semiconductor Manufacturing International's current Interest Coverage of 2.70 is 13% below median its 10-year median of 3.11. Over the past 10 years, this metric has ranged from a low of 0.23 to a high of 14.25. The Semiconductors industry median Interest Coverage is 20.23. Semiconductor Manufacturing International's value of 2.70 is 86.7% below this industry median. Based on the distribution chart, Semiconductor Manufacturing International ranks #545 out of 638 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Semiconductor Manufacturing International has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Semiconductor Manufacturing International's Interest Coverage compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Semiconductor Manufacturing International ranks #545 out of 638 companies for Interest Coverage. This places Semiconductor Manufacturing International in the lower half of its industry. The industry median Interest Coverage is 20.23. Semiconductor Manufacturing International's value of 2.70 is 86.7% below this benchmark. Historically, Semiconductor Manufacturing International's own Interest Coverage has ranged from 0.23 to 14.25 over the past decade. While the company's 10-year median is 3.11 vs. the industry median of 20.23, Semiconductor Manufacturing International 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 20.23, based on 638 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. Semiconductor Manufacturing International's current Interest Coverage of 2.70 is 86.7% 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 Semiconductor Manufacturing International and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Semiconductor Manufacturing International's current Interest Coverage is 2.70, which is 13% below median its own 10-year median of 3.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Semiconductor Manufacturing International stock overvalued right now?
Based on GuruFocus' analysis, Semiconductor Manufacturing International (SHSE:688981) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥70.03, compared to a current price of ¥148.76 — trading 112.4% above its estimated fair value. The current Interest Coverage is 2.70, which is 13% below median its 10-year median of 3.11 and 86.7% below the Semiconductors industry median of 20.23. Semiconductor Manufacturing International's overall GF Score™ is 77/100 with 6 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 Semiconductor Manufacturing International (SHSE:688981), the current Interest Coverage is 2.70 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 Semiconductor Manufacturing International (SHSE:688981) Overvalued in 2026?
Based on GuruFocus' analysis, Semiconductor Manufacturing International stock appears to be overvalued.
The current stock price of ¥148.76 is trading 112.4% above its estimated GF Value™ of ¥70.03.
GuruFocus considers Semiconductor Manufacturing International to be Significantly Overvalued.
Key valuation signals for SHSE:688981:
Interest Coverage: 2.70 (13% below median its 10-year median of 3.11)
GF Value™: ¥70.03 vs. price of ¥148.76 (112.4% above fair value)
Industry Position: 86.7% below the Semiconductors median (#545 of 638)
No single metric tells the full story. See the SHSE:688981 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Semiconductor Manufacturing International Business Description
Founded in 2000, Semiconductor Manufacturing International Corporation is the largest foundry in China and the third-largest globally after TSMC and Samsung Electronics, overtaking GlobalFoundries and United Microelectronics in 2024. The company's headquarters and foundry are in Shanghai, with additional foundries in Beijing, Tianjin, and Shenzhen, and offices in the United States, Europe, Japan, Taiwan, and Hong Kong. Its products are used in artificial intelligence, data centers, automotive, consumer electronics, memory, and "Internet of Things" products. SMIC employs 19,952 people as of Dec. 31, 2025.
77GF Score
Get the complete analysis for SHSE:688981
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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