China Railway GroupSTU:CNO +1.36%59 Interest Coverage is 2.83 as of Mar. 2026, which is 52% below its 10-year median of 5.86. GuruFocus rates STU:CNO with a GF Score™ of 59/100 and a GF Value™ of €0.48 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,351 Construction companies, China Railway Group ranks worse than 69.21% 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. China Railway Group's
Operating Income
for the
three
months ended in Mar. 2026 was €1,124 Mil. China Railway Group's Interest Expense for the
three
months ended in Mar. 2026 was €-398 Mil.
China Railway Group's interest coverage for the quarter that ended in Mar. 2026 was 2.83.
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. China Railway Group Ltd interest coverage is 3.63, which is low.
The historical rank and industry rank for China Railway Group's Interest Coverage or its related term are showing as below:
STU:CNO'
s Interest Coverage Range Over the Past 10 Years
Min: 3.63 Med: 5.86 Max: 7.1
Current: 3.63
STU:CNO's Interest Coverage is ranked worse than 69.21% of 1351
companies
in the Construction industry
Industry Median: 7.81
vs STU:CNO: 3.63
China Railway Group (STU:CNO) 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 .
China Railway Group Interest Coverage Related Terms
China Railway Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for China Railway Group'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.
STU:CNO vs PWR, FIX, EME: Interest Coverage Comparison
For the Engineering & Construction subindustry, China Railway Group'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.
China Railway Group Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, China Railway Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where China Railway Group's Interest Coverage falls into.
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.
China Railway Group (STU:CNO) has a Interest Coverage of 2.83 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Railway Group and its competitors. This is 52% below median its historical median of 5.86. Over the past decade, China Railway Group's Interest Coverage has ranged from 3.63 to 7.10. According to the industry distribution chart, China Railway Group ranks #935 out of 1351 companies in the Construction industry, placing it in the top 69.2%.
Is China Railway Group's Interest Coverage too high?
China Railway Group's current Interest Coverage of 2.83 is 52% below median its 10-year median of 5.86. Over the past 10 years, this metric has ranged from a low of 3.63 to a high of 7.10. The Construction industry median Interest Coverage is 7.81. China Railway Group's value of 2.83 is 63.8% below this industry median. Based on the distribution chart, China Railway Group ranks #935 out of 1351 companies in the Construction industry, which is below the industry midpoint. Overall, China Railway Group has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Railway Group's Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, China Railway Group ranks #935 out of 1351 companies for Interest Coverage. This places China Railway Group in the lower half of its industry. The industry median Interest Coverage is 7.81. China Railway Group's value of 2.83 is 63.8% below this benchmark. Historically, China Railway Group's own Interest Coverage has ranged from 3.63 to 7.10 over the past decade. While the company's 10-year median is 5.86 vs. the industry median of 7.81, China Railway Group 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 Construction company?
The median Interest Coverage among Construction companies is 7.81, based on 1,351 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. China Railway Group's current Interest Coverage of 2.83 is 63.8% 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 China Railway Group and its competitors. For the Construction industry, the median Interest Coverage is 7.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Railway Group's current Interest Coverage is 2.83, which is 52% below median its own 10-year median of 5.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Railway Group stock overvalued right now?
Based on GuruFocus' analysis, China Railway Group (STU:CNO) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.48, compared to a current price of €0.38 — trading 20.8% below its estimated fair value. The current Interest Coverage is 2.83, which is 52% below median its 10-year median of 5.86 and 63.8% below the Construction industry median of 7.81. China Railway Group's overall GF Score™ is 59/100 with 8 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 China Railway Group (STU:CNO), the current Interest Coverage is 2.83 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 China Railway Group (STU:CNO) Overvalued in 2026?
Based on GuruFocus' analysis, China Railway Group stock appears to be undervalued.
The current stock price of €0.38 is trading 20.8% below its estimated GF Value™ of €0.48.
GuruFocus considers China Railway Group to be Modestly Undervalued.
Key valuation signals for STU:CNO:
Interest Coverage: 2.83 (52% below median its 10-year median of 5.86)
GF Value™: €0.48 vs. price of €0.38 (20.8% below fair value)
Industry Position: 63.8% below the Construction median (#935 of 1351)
No single metric tells the full story. See the STU:CNO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Railway Group Ltd is a construction conglomerate company. The company's operating segment includes Infrastructure construction; Survey, design and consulting services; Engineering equipment and component manufacturing; Property development, and Other businesses. It generates maximum revenue from the Infrastructure construction segment. The Infrastructure construction segment includes the construction of railways, highways, bridges, tunnels, metropolitan railways (including subways and light railways), buildings, irrigation works, hydroelectricity projects, ports, docks, airports, and other municipal works.
59GF Score
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