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China Railway Construction has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
China Railway Construction Corp 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 Railway Construction's Interest Coverage for the quarter that ended in Jun. 2026 was 3.48.
China Railway Construction's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.93.
As of today, China Railway Construction's Altman Z-Score is 0.69.
China Railway Construction (FRA:4FF) 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 Railway Construction has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
China Railway Construction Financial Strength Related Terms
FRA:4FF vs PWR, FIX, EME: Financial Strength Comparison
For the Engineering & Construction subindustry, China Railway Construction's Financial Strength, along with its competitors' market caps and Financial Strength 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 Construction Financial Strength vs Construction Industry
For the Construction industry and Industrials sector, China Railway Construction's Financial Strength distribution charts can be found below:
* The bar in red indicates where China Railway Construction's Financial Strength 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:
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.
China Railway Construction has a Z-score of 0.69, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.69 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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 Construction (FRA:4FF) has a Financial Strength of 3 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 Railway Construction and its competitors. This is 25% below median its historical median of 4.00. Over the past decade, China Railway Construction's Financial Strength has ranged from 3.00 to 6.00.
Is China Railway Construction's Financial Strength too high?
China Railway Construction's current Financial Strength of 3 is 25% below 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 Railway Construction has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does China Railway Construction's Financial Strength compare to PWR and FIX?
China Railway Construction's Financial Strength of 3 can be compared against companies in the Construction industry. Historically, China Railway Construction'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 Construction company?
A good Financial Strength depends on the Construction 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 Railway Construction and its competitors. China Railway Construction's current Financial Strength is 3, which is 25% below 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 Railway Construction stock overvalued right now?
China Railway Construction (FRA:4FF) has a current Financial Strength of 3. The stock's GF Value™ is €0.79, compared to a current price of €0.64 — trading 19% below its estimated fair value. The current Financial Strength is 3, which is 25% below median its 10-year median of 4.00. China Railway Construction's overall GF Score™ is 56/100 with 7 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 Railway Construction (FRA:4FF), the current Financial Strength is 3 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 Railway Construction (FRA:4FF) Overvalued in 2026?
Based on GuruFocus' analysis, China Railway Construction stock appears to be undervalued.
The current stock price of €0.64 is trading 19% below its estimated GF Value™ of €0.79.
Key valuation signals for FRA:4FF:
Financial Strength: 3 (25% below median its 10-year median of 4.00)
GF Value™: €0.79 vs. price of €0.64 (19% below fair value)
No single metric tells the full story. See the FRA:4FF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Railway Construction Corp Ltd operates as an infrastructure construction firm. It largely derives contracting revenue. It builds railways, highways and municipal works, such as subways and light rail systems. The company also engages in survey and design, manufacturing, logistics, and property development. It operates the following business segments: Engineering contracting business, Planning, design and consultancy, Manufacturing operation, Real estate development operation, Materials and logistics and other businesses. The firm's revenue gets dominated by the Engineering contracting business segment that engages in the construction of infrastructure such as railways, highways, metropolitan railways, and real estate projects.
56GF Score
Get the complete analysis for FRA:4FF
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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