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New World Development Co 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:
New World Development 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.
New World Development Co's Interest Coverage for the quarter that ended in Dec. 2025 was 1.25.
New World Development Co's debt to revenue ratio for the quarter that ended in Dec. 2025 was 9.11.
As of today, New World Development Co's Altman Z-Score is 0.19.
New World Development Co (OTCPK:NWWDF) 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.
New World Development Co 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.
New World Development Co Financial Strength Related Terms
New World Development Co Financial Strength Competitor Comparison
For the Real Estate - Diversified subindustry, New World Development Co'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.
New World Development Co Financial Strength vs Real Estate Industry
For the Real Estate industry and Real Estate sector, New World Development Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where New World Development Co'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:
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. New World Development Co Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
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.
New World Development Co has a Z-score of 0.19, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.19 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.
New World Development Co (NWWDF) has a Financial Strength of 3 as of Dec. 2025. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on New World Development Co and its competitors. This is 40% below median its historical median of 5.00. Over the past decade, New World Development Co's Financial Strength has ranged from 3.00 to 5.00.
Is New World Development Co's Financial Strength too high?
New World Development Co's current Financial Strength of 3 is 40% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 5.00. Overall, New World Development Co has a GF Score™ of 58/100, reflecting its overall financial health beyond just this single metric.
How does New World Development Co's Financial Strength compare to competitors?
New World Development Co's Financial Strength of 3 can be compared against companies in the Real Estate industry. Historically, New World Development Co's own Financial Strength has ranged from 3.00 to 5.00 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 Real Estate company?
A good Financial Strength depends on the Real Estate 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 New World Development Co and its competitors. New World Development Co's current Financial Strength is 3, which is 40% below median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New World Development Co stock overvalued right now?
New World Development Co (NWWDF) has a current Financial Strength of 3. The stock's GF Value™ is $0.99, compared to a current price of $1.23 — trading 24.2% above its estimated fair value. The current Financial Strength is 3, which is 40% below median its 10-year median of 5.00. New World Development Co's overall GF Score™ is 58/100 with 6 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 New World Development Co (NWWDF), the current Financial Strength is 3 as of Dec. 2025. 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 New World Development Co (NWWDF) Overvalued in 2026?
Based on GuruFocus' analysis, New World Development Co stock appears to be overvalued.
The current stock price of $1.23 is trading 24.2% above its estimated GF Value™ of $0.99.
Key valuation signals for NWWDF:
Financial Strength: 3 (40% below median its 10-year median of 5.00)
GF Value™: $0.99 vs. price of $1.23 (24.2% above fair value)
No single metric tells the full story. See the NWWDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New World Development is the listed property arm of Chow Tai Fook, owned by the Cheng family. Chow Tai Fook owns about a 45% stake in NWD, which mainly engages in residential property development and investment properties of retail malls and offices in Hong Kong and mainland China. NWD also develops high-end hotels across Hong Kong, mainland China, and in Southeast Asia. Additionally, NWD holds a 75% interest in New World Department Store China, which operates 24 department stores in mainland China.
58GF Score
Get the complete analysis for NWWDF
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