The Hongkong and Shanghai Hotels (FRA:HSG) Financial Strength: 4 (As of Jun. 2026) — Near Median

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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.
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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.

FRA:HSG The Hongkong and Shanghai Hotels Ltd FRA:HSG
68 GF Score
Price €0.57
GF Value €0.60
! 3 Warning Signs
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What is The Hongkong and Shanghai Hotels Financial Strength?

The Hongkong and Shanghai Hotels FRA:HSG 68 Financial Strength is 4 as of Jun. 2026, which is at its 10-year median of 4.00. GuruFocus rates FRA:HSG with a GF Score™ of 68/100 and a GF Value™ of €0.60. The stock has 3 warning signs investors should review.

The Hongkong and Shanghai Hotels has the Financial Strength Rank of 4.

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.

The Hongkong and Shanghai Hotels's Interest Coverage for the quarter that ended in Jun. 2026 was 1.25. The Hongkong and Shanghai Hotels's debt to revenue ratio for the quarter that ended in Jun. 2026 was 2.01. As of today, The Hongkong and Shanghai Hotels's Altman Z-Score is 1.17.


The Hongkong and Shanghai Hotels  (FRA:HSG) 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.

The Hongkong and Shanghai Hotels has the Financial Strength Rank of 4.


The Hongkong and Shanghai Hotels Financial Strength Related Terms


FRA:HSG vs MAR, HLT, H: Financial Strength Comparison

For the Lodging subindustry, The Hongkong and Shanghai Hotels'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.


The Hongkong and Shanghai Hotels Financial Strength vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, The Hongkong and Shanghai Hotels's Financial Strength distribution charts can be found below:

* The bar in red indicates where The Hongkong and Shanghai Hotels's Financial Strength falls into.


FRA:HSG
68GF Score
The Hongkong and Shanghai Hotels Ltd FRA:HSG
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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The Hongkong and Shanghai Hotels Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

The Hongkong and Shanghai Hotels's Interest Expense for the months ended in Jun. 2026 was €0.0 Mil. Its Operating Income for the months ended in Jun. 2026 was €45.8 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €1,193.5 Mil.

The Hongkong and Shanghai Hotels's Interest Coverage for the quarter that ended in Jun. 2026 is

GuruFocus does not calculate The Hongkong and Shanghai Hotels's interest coverage with the available data.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

The Hongkong and Shanghai Hotels's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(539.60510976438 + 1193.5333360043) / 860.96135036738
=2.01

3. Altman Z-Score.

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.

The Hongkong and Shanghai Hotels has a Z-score of 1.17, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.17 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 4 mean?
The Hongkong and Shanghai Hotels (FRA:HSG) 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 The Hongkong and Shanghai Hotels and its competitors. This is near median its historical median of 4.00. Over the past decade, The Hongkong and Shanghai Hotels' Financial Strength has ranged from 3.00 to 8.00.
Is The Hongkong and Shanghai Hotels' Financial Strength too high?
The Hongkong and Shanghai Hotels' 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 8.00. Overall, The Hongkong and Shanghai Hotels has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does The Hongkong and Shanghai Hotels' Financial Strength compare to MAR and HLT?
The Hongkong and Shanghai Hotels' Financial Strength of 4 can be compared against companies in the Travel & Leisure industry. Historically, The Hongkong and Shanghai Hotels' own Financial Strength has ranged from 3.00 to 8.00 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 Travel & Leisure company?
A good Financial Strength depends on the Travel & Leisure 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 The Hongkong and Shanghai Hotels and its competitors. The Hongkong and Shanghai Hotels'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 The Hongkong and Shanghai Hotels stock overvalued right now?
The Hongkong and Shanghai Hotels (FRA:HSG) has a current Financial Strength of 4. The stock's GF Value™ is €0.60, compared to a current price of €0.57 — trading 5.8% below its estimated fair value. The current Financial Strength is 4, which is near median its 10-year median of 4.00. The Hongkong and Shanghai Hotels' overall GF Score™ is 68/100 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 The Hongkong and Shanghai Hotels (FRA:HSG), 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 The Hongkong and Shanghai Hotels (FRA:HSG) Overvalued in 2026?

Based on GuruFocus' analysis, The Hongkong and Shanghai Hotels stock appears to be undervalued. The current stock price of €0.57 is trading 5.8% below its estimated GF Value™ of €0.60.

Key valuation signals for FRA:HSG:

  • Financial Strength: 4 (near median its 10-year median of 4.00)
  • GF Value™: €0.60 vs. price of €0.57 (5.8% below fair value)
  • GF Score™: 68/100 with 3 warning signs

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


The Hongkong and Shanghai Hotels Business Description

Other Exchanges HKSHY:USA00045:Hong Kong
Address 2 Ice House Street, 8th Floor, St. George’s Building, Central, Hong Kong, HKG
The Hongkong and Shanghai Hotels Ltd is a luxury hospitality and real estate group. It owns and operates hotel properties under the Peninsula brand located in city centres across Asia, the U.S., and Europe. The company's assets comprise a small number of ultra-luxury hotels, real estate assets, and tourism assets, including The Peak Tram, one of Hong Kong's tourist attractions. The group's reportable segments are: Hotels, Commercial Properties, Peak Tram, Retail, and Others. Maximum revenue is generated from its Hotels segment, which includes revenue generated from operating hotels, leasing of commercial shopping arcades, and office premises located within the hotel buildings. Geographically, the group generates the majority of its revenue from Greater China.
68GF Score

Get the complete analysis for FRA:HSG

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

€0.57
Price
€0.60
GF Value