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Huadong Medicine CoSZSE:000963 -0.33%89 Interest Coverage is 90.69 as of Jun. 2026, which is 183% above its 10-year median of 32.03. GuruFocus rates SZSE:000963 with a GF Score™ of 89/100 and a GF Value™ of ¥37.38 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 676 Drug Manufacturers companies, Huadong Medicine Co ranks better than 74.26% 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. Huadong Medicine Co's
Operating Income
for the
three
months ended in Jun. 2026 was ¥1,091 Mil. Huadong Medicine Co's Interest Expense for the
three
months ended in Jun. 2026 was ¥-12 Mil.
Huadong Medicine Co's interest coverage for the quarter that ended in Jun. 2026 was 90.69.
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. Huadong Medicine Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Huadong Medicine Co's Interest Coverage or its related term are showing as below:
SZSE:000963'
s Interest Coverage Range Over the Past 10 Years
Min: 20.29 Med: 32.03 Max: 67.84
Current: 67.84
SZSE:000963's Interest Coverage is ranked better than 74.26% of 676
companies
in the Drug Manufacturers industry
Industry Median: 13
vs SZSE:000963: 67.84
Huadong Medicine Co (SZSE:000963) 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 .
Huadong Medicine Co Interest Coverage Related Terms
Huadong Medicine Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Huadong Medicine 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Huadong Medicine 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.
Huadong Medicine Co Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Huadong Medicine Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Huadong Medicine Co'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.
Huadong Medicine Co (SZSE:000963) has a Interest Coverage of 90.69 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Huadong Medicine Co and its competitors. This is 183% above median its historical median of 32.03. Over the past decade, Huadong Medicine Co's Interest Coverage has ranged from 20.29 to 67.84. According to the industry distribution chart, Huadong Medicine Co ranks #174 out of 676 companies in the Drug Manufacturers industry, placing it in the top 25.7%.
Is Huadong Medicine Co's Interest Coverage too high?
Huadong Medicine Co's current Interest Coverage of 90.69 is 183% above median its 10-year median of 32.03. Over the past 10 years, this metric has ranged from a low of 20.29 to a high of 67.84. The Drug Manufacturers industry median Interest Coverage is 13.00. Huadong Medicine Co's value of 90.69 is 597.6% above this industry median. Based on the distribution chart, Huadong Medicine Co ranks #174 out of 676 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Huadong Medicine Co has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Huadong Medicine Co's Interest Coverage compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Huadong Medicine Co ranks #174 out of 676 companies for Interest Coverage. This puts Huadong Medicine Co in the upper half of its industry. The industry median Interest Coverage is 13.00. Huadong Medicine Co's value of 90.69 is 597.6% above this benchmark. Historically, Huadong Medicine Co's own Interest Coverage has ranged from 20.29 to 67.84 over the past decade. While the company's 10-year median is 32.03 vs. the industry median of 13.00, Huadong Medicine 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 13.00, based on 676 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. Huadong Medicine Co's current Interest Coverage of 90.69 is 597.6% 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 Huadong Medicine Co and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 13.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Huadong Medicine Co's current Interest Coverage is 90.69, which is 183% above median its own 10-year median of 32.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huadong Medicine Co stock overvalued right now?
Based on GuruFocus' analysis, Huadong Medicine Co (SZSE:000963) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥37.38, compared to a current price of ¥27.37 — trading 26.8% below its estimated fair value. The current Interest Coverage is 90.69, which is 183% above median its 10-year median of 32.03 and 597.6% above the Drug Manufacturers industry median of 13.00. Huadong Medicine Co's overall GF Score™ is 89/100 with 2 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 Huadong Medicine Co (SZSE:000963), the current Interest Coverage is 90.69 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 Huadong Medicine Co (SZSE:000963) Overvalued in 2026?
Based on GuruFocus' analysis, Huadong Medicine Co stock appears to be undervalued.
The current stock price of ¥27.37 is trading 26.8% below its estimated GF Value™ of ¥37.38.
GuruFocus considers Huadong Medicine Co to be Modestly Undervalued.
Key valuation signals for SZSE:000963:
Interest Coverage: 90.69 (183% above median its 10-year median of 32.03)
GF Value™: ¥37.38 vs. price of ¥27.37 (26.8% below fair value)
Industry Position: 597.6% above the Drug Manufacturers median (#174 of 676)
No single metric tells the full story. See the SZSE:000963 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Huadong Medicine Co Ltd is engaged in the production and sales of antibiotics, proprietary Chinese medicine, chemical synthetic medicine, and genetic engineering drug products. The company mainly operates its business through three segments. The Manufacturing Business segment is engaged in the research and development, production, and marketing of specialized medicines, medicines for chronic diseases, as well as special medicines. The Commercial Business segment is engaged in the sales of medicines, medical devices, ginseng, and antler pieces. The International Medical Beauty Business segment is engaged in the production and sales of regeneration products, hyaluronic acids, and botulinum toxin products.
89GF Score
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