Zhejiang Dahua Technology Co (SZSE:002236) Interest Coverage: 124.94 (As of Jun. 2026) — 203% 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.

SZSE:002236 Zhejiang Dahua Technology Co Ltd SZSE:002236
86 GF Score
Price ¥16.07
GF Value ¥18.39
Valuation Modestly Undervalued
! 3 Warning Signs
View Full Analysis

What is Zhejiang Dahua Technology Co Interest Coverage?

Zhejiang Dahua Technology Co SZSE:002236 -1.29% 86 Interest Coverage is 124.94 as of Jun. 2026, which is 203% above its 10-year median of 41.23. GuruFocus rates SZSE:002236 with a GF Score™ of 86/100 and a GF Value™ of ¥18.39 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 805 Business Services companies, Zhejiang Dahua Technology Co ranks better than 87.45% 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. Zhejiang Dahua Technology Co's Operating Income for the three months ended in Jun. 2026 was ¥1,795 Mil. Zhejiang Dahua Technology Co's Interest Expense for the three months ended in Jun. 2026 was ¥-14 Mil. Zhejiang Dahua Technology Co's interest coverage for the quarter that ended in Jun. 2026 was 124.94. 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. Zhejiang Dahua Technology Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Zhejiang Dahua Technology Co's Interest Coverage or its related term are showing as below:

SZSE:002236' s Interest Coverage Range Over the Past 10 Years
Min: 17.21   Med: 41.23   Max: 289.42
Current: 289.42


SZSE:002236's Interest Coverage is ranked better than
87.45% of 805 companies
in the Business Services industry
Industry Median: 13.8 vs SZSE:002236: 289.42

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


Zhejiang Dahua Technology Co  (SZSE:002236) 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 .


Zhejiang Dahua Technology Co Interest Coverage Related Terms


Zhejiang Dahua Technology Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Zhejiang Dahua Technology 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.

Zhejiang Dahua Technology Co Interest Coverage Chart

Zhejiang Dahua Technology Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 46.98 17.21 38.48 60.64 0.00

Zhejiang Dahua Technology Co Quarterly Data
Sep21 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 0.00 259.35 0.00 150.24 124.94

SZSE:002236 vs ALLE, MSA, ADT: Interest Coverage Comparison

For the Security & Protection Services subindustry, Zhejiang Dahua Technology 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.


Zhejiang Dahua Technology Co Interest Coverage vs Business Services Industry

For the Business Services industry and Industrials sector, Zhejiang Dahua Technology Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Zhejiang Dahua Technology Co's Interest Coverage falls into.


SZSE:002236
86GF Score
Zhejiang Dahua Technology Co Ltd SZSE:002236
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zhejiang Dahua Technology 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.

Zhejiang Dahua Technology 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, Zhejiang Dahua Technology Co's Interest Expense was ¥22 Mil. Its Operating Income was ¥3,424 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥165 Mil.

Zhejiang Dahua Technology Co's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, Zhejiang Dahua Technology Co's Interest Expense was ¥-14 Mil. Its Operating Income was ¥1,795 Mil. And its Long-Term Debt & Capital Lease Obligation was ¥170 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*1794.947/-14.366
=124.94

* 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 124.94 mean?
Zhejiang Dahua Technology Co (SZSE:002236) has a Interest Coverage of 124.94 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Zhejiang Dahua Technology Co and its competitors. This is 203% above median its historical median of 41.23. Over the past decade, Zhejiang Dahua Technology Co's Interest Coverage has ranged from 17.21 to 289.42. According to the industry distribution chart, Zhejiang Dahua Technology Co ranks #101 out of 805 companies in the Business Services industry, placing it in the top 12.5%.
Is Zhejiang Dahua Technology Co's Interest Coverage too high?
Zhejiang Dahua Technology Co's current Interest Coverage of 124.94 is 203% above median its 10-year median of 41.23. Over the past 10 years, this metric has ranged from a low of 17.21 to a high of 289.42. The Business Services industry median Interest Coverage is 13.80. Zhejiang Dahua Technology Co's value of 124.94 is 805.4% above this industry median. Based on the distribution chart, Zhejiang Dahua Technology Co ranks #101 out of 805 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Zhejiang Dahua Technology Co has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Dahua Technology Co's Interest Coverage compare to ALLE and MSA?
According to the Business Services industry distribution chart, Zhejiang Dahua Technology Co ranks #101 out of 805 companies for Interest Coverage. This places Zhejiang Dahua Technology Co in the top 13% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 13.80. Zhejiang Dahua Technology Co's value of 124.94 is 805.4% above this benchmark. Historically, Zhejiang Dahua Technology Co's own Interest Coverage has ranged from 17.21 to 289.42 over the past decade. While the company's 10-year median is 41.23 vs. the industry median of 13.80, Zhejiang Dahua Technology 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 Business Services company?
The median Interest Coverage among Business Services companies is 13.80, based on 805 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. Zhejiang Dahua Technology Co's current Interest Coverage of 124.94 is 805.4% 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 Zhejiang Dahua Technology Co and its competitors. For the Business Services industry, the median Interest Coverage is 13.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Dahua Technology Co's current Interest Coverage is 124.94, which is 203% above median its own 10-year median of 41.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Dahua Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Dahua Technology Co (SZSE:002236) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥18.39, compared to a current price of ¥16.07 — trading 12.6% below its estimated fair value. The current Interest Coverage is 124.94, which is 203% above median its 10-year median of 41.23 and 805.4% above the Business Services industry median of 13.80. Zhejiang Dahua Technology Co's overall GF Score™ is 86/100 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 Zhejiang Dahua Technology Co (SZSE:002236), the current Interest Coverage is 124.94 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 Zhejiang Dahua Technology Co (SZSE:002236) Overvalued in 2026?

Based on GuruFocus' analysis, Zhejiang Dahua Technology Co stock appears to be undervalued. The current stock price of ¥16.07 is trading 12.6% below its estimated GF Value™ of ¥18.39. GuruFocus considers Zhejiang Dahua Technology Co to be Modestly Undervalued.

Key valuation signals for SZSE:002236:

  • Interest Coverage: 124.94 (203% above median its 10-year median of 41.23)
  • GF Value™: ¥18.39 vs. price of ¥16.07 (12.6% below fair value)
  • GF Score™: 86/100 with 3 warning signs
  • Industry Position: 805.4% above the Business Services median (#101 of 805)

No single metric tells the full story. See the SZSE:002236 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zhejiang Dahua Technology Co Business Description

Address No. 1399, Bixing Road, Binjiang District, Zhejiang Province, Hangzhou, CHN, 310053
Zhejiang Dahua Technology Co Ltd is engaged in the production of security and surveillance products. The product offered by the company includes transmission products, cloud products, camcorders, display products, video conference products, drones, Smart fire protection, and others. These products are used for city operations, business management, personal consumer life, and others.
86GF Score

Get the complete analysis for SZSE:002236

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

¥16.07
Price
¥18.39
GF Value