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China Merchants Bank Co has the Financial Strength Rank of 4.
Warning Sign:
China Merchants Bank Co Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
China Merchants Bank Co did not have earnings to cover the interest expense.
China Merchants Bank Co's debt to revenue ratio for the quarter that ended in Jun. 2026 was 5.31.
Altman Z-Score does not apply to banks and insurance companies.
China Merchants Bank Co (OTCPK:CIHHF) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
China Merchants Bank Co has the Financial Strength Rank of 4.
China Merchants Bank Co Financial Strength Related Terms
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:
GuruFocus does not calculate China Merchants Bank Co's interest coverage with the available data.
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. China Merchants Bank Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* 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 Merchants Bank Co (CIHHF) has a Financial Strength of 4 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on China Merchants Bank Co and its competitors. This is near median its historical median of 4.00. Over the past decade, China Merchants Bank Co's Financial Strength has ranged from 3.00 to 6.00.
Is China Merchants Bank Co's Financial Strength too high?
China Merchants Bank Co's current Financial Strength of 4 is near median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 6.00. Overall, China Merchants Bank Co has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Merchants Bank Co's Financial Strength compare to competitors?
China Merchants Bank Co's Financial Strength of 4 can be compared against companies in the Banks industry. Historically, China Merchants Bank Co's own Financial Strength has ranged from 3.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Banks company?
A good Financial Strength depends on the Banks industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on China Merchants Bank Co and its competitors. China Merchants Bank Co's current Financial Strength is 4, which is near median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Merchants Bank Co stock overvalued right now?
Based on GuruFocus' analysis, China Merchants Bank Co (CIHHF) is currently considered Fairly Valued. The stock's GF Value™ is $6.49, compared to a current price of $7.01 — trading 8% above its estimated fair value. The current Financial Strength is 4, which is near median its 10-year median of 4.00. China Merchants Bank Co's overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For China Merchants Bank Co (CIHHF), the current Financial Strength is 4 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 China Merchants Bank Co (CIHHF) Overvalued in 2026?
Based on GuruFocus' analysis, China Merchants Bank Co stock appears to be overvalued.
The current stock price of $7.01 is trading 8% above its estimated GF Value™ of $6.49.
GuruFocus considers China Merchants Bank Co to be Fairly Valued.
Key valuation signals for CIHHF:
Financial Strength: 4 (near median its 10-year median of 4.00)
GF Value™: $6.49 vs. price of $7.01 (8% above fair value)
No single metric tells the full story. See the CIHHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Merchants Bank was founded in 1987 and is headquartered in Shenzhen. The bank is China's seventh-largest listed bank by assets, with the largest distribution network among China's joint-stock banks. CMB's network has been expanding rapidly. Its outlets are located mainly in China's more developed areas, including the Pearl River and Yangtze River deltas. The firm has 18% and 82% of its shares listed on the Hong Kong and Shanghai exchanges, respectively. It has no foreign strategic investors. China Merchants Group is its largest shareholder, with a 30% stake. Retail banking, corporate banking, and wholesale banking accounted for 49%, 51%, and 0% of total profit before tax, respectively, and 40%, 58%, and 2% of total revenue in 2024.
72GF Score
Get the complete analysis for CIHHF
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