Guangdong InvestmentSTU:GUG +1.63%44 Interest Coverage is 10.83 as of Dec. 2025, which is 42% below its 10-year median of 18.80. GuruFocus rates STU:GUG with a GF Score™ of 44/100 and a GF Value™ of €0.63 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 449 Utilities - Regulated companies, Guangdong Investment ranks better than 78.4% 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. Guangdong Investment's
Operating Income
for the
six
months ended in Dec. 2025 was €353 Mil. Guangdong Investment's Interest Expense for the
six
months ended in Dec. 2025 was €-33 Mil.
Guangdong Investment's interest coverage for the quarter that ended in Dec. 2025 was 10.83.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Guangdong Investment's Interest Coverage or its related term are showing as below:
STU:GUG'
s Interest Coverage Range Over the Past 10 Years
Min: 6.64 Med: 18.8 Max: 48.62
Current: 11.55
STU:GUG's Interest Coverage is ranked better than 78.4% of 449
companies
in the Utilities - Regulated industry
Industry Median: 3.78
vs STU:GUG: 11.55
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 .
Guangdong Investment Interest Coverage Related Terms
Guangdong Investment Interest Coverage Historical Data
* Premium members only.
The historical data trend for Guangdong Investment'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:GUG vs AWK, WTRG, AWR: Interest Coverage Comparison
For the Utilities - Regulated Water subindustry, Guangdong Investment'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.
Guangdong Investment Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Guangdong Investment's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Guangdong Investment'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.
Guangdong Investment (STU:GUG) has a Interest Coverage of 10.83 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Guangdong Investment and its competitors. This is 42% below median its historical median of 18.80. Over the past decade, Guangdong Investment's Interest Coverage has ranged from 6.64 to 48.62. According to the industry distribution chart, Guangdong Investment ranks #97 out of 449 companies in the Utilities - Regulated industry, placing it in the top 21.6%.
Is Guangdong Investment's Interest Coverage too high?
Guangdong Investment's current Interest Coverage of 10.83 is 42% below median its 10-year median of 18.80. Over the past 10 years, this metric has ranged from a low of 6.64 to a high of 48.62. The Utilities - Regulated industry median Interest Coverage is 3.78. Guangdong Investment's value of 10.83 is 186.5% above this industry median. Based on the distribution chart, Guangdong Investment ranks #97 out of 449 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Guangdong Investment has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guangdong Investment's Interest Coverage compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Guangdong Investment ranks #97 out of 449 companies for Interest Coverage. This places Guangdong Investment in the top 22% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 3.78. Guangdong Investment's value of 10.83 is 186.5% above this benchmark. Historically, Guangdong Investment's own Interest Coverage has ranged from 6.64 to 48.62 over the past decade. While the company's 10-year median is 18.80 vs. the industry median of 3.78, Guangdong Investment 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 an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 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. Guangdong Investment's current Interest Coverage of 10.83 is 186.5% 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 Guangdong Investment and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangdong Investment's current Interest Coverage is 10.83, which is 42% below median its own 10-year median of 18.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangdong Investment stock overvalued right now?
Based on GuruFocus' analysis, Guangdong Investment (STU:GUG) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.63, compared to a current price of €0.86 — trading 36.8% above its estimated fair value. The current Interest Coverage is 10.83, which is 42% below median its 10-year median of 18.80 and 186.5% above the Utilities - Regulated industry median of 3.78. Guangdong Investment's overall GF Score™ is 44/100 with 7 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 Guangdong Investment (STU:GUG), the current Interest Coverage is 10.83 as of Dec. 2025. 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 Guangdong Investment (STU:GUG) Overvalued in 2026?
Based on GuruFocus' analysis, Guangdong Investment stock appears to be overvalued.
The current stock price of €0.86 is trading 36.8% above its estimated GF Value™ of €0.63.
GuruFocus considers Guangdong Investment to be Significantly Overvalued.
Key valuation signals for STU:GUG:
Interest Coverage: 10.83 (42% below median its 10-year median of 18.80)
GF Value™: €0.63 vs. price of €0.86 (36.8% above fair value)
Industry Position: 186.5% above the Utilities - Regulated median (#97 of 449)
No single metric tells the full story. See the STU:GUG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guangdong Investment Ltd is engaged in investment holding. The segments of the company include Water resources, Property investment, Department store operation, Electric power generation, Hotel operation and management, Road and bridge segment, and Others segment. The company derives its revenue from the Water resources segment that engages in water distribution, sewage treatment, and construction of water supply and sewage treatment infrastructure for customers in Mainland China and Hong Kong. Geographically, the company generates almost all of its revenue from the Mainland China.
44GF Score
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