African Rainbow MineralsAFBOF 82 Interest Coverage is 13.11 as of Dec. 2025, which is 336% above its 10-year median of 3.01. GuruFocus rates AFBOF with a GF Score™ of 82/100 and a GF Value™ of $12.88 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,318 Metals & Mining companies, African Rainbow Minerals ranks worse than 88.92% 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. African Rainbow Minerals's
Operating Income
for the
six
months ended in Dec. 2025 was $110.6 Mil. African Rainbow Minerals's Interest Expense for the
six
months ended in Dec. 2025 was $-8.4 Mil.
African Rainbow Minerals's interest coverage for the quarter that ended in Dec. 2025 was 13.11.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for African Rainbow Minerals's Interest Coverage or its related term are showing as below:
AFBOF'
s Interest Coverage Range Over the Past 10 Years
Min: 0.16 Med: 3.01 Max: 34.21
Current: 5.14
AFBOF's Interest Coverage is ranked worse than 88.92% of 1318
companies
in the Metals & Mining industry
Industry Median: No Debt
vs AFBOF: 5.14
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 .
African Rainbow Minerals Interest Coverage Related Terms
African Rainbow Minerals Interest Coverage Historical Data
* 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.
For the Other Industrial Metals & Mining subindustry, African Rainbow Minerals'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.
African Rainbow Minerals Interest Coverage vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, African Rainbow Minerals's Interest Coverage distribution charts can be found below:
* The bar in red indicates where African Rainbow Minerals's Interest Coverage 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:
* 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.
African Rainbow Minerals (AFBOF) has a Interest Coverage of 13.11 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on African Rainbow Minerals and its competitors. This is 336% above median its historical median of 3.01. Over the past decade, African Rainbow Minerals' Interest Coverage has ranged from 0.16 to 34.21. According to the industry distribution chart, African Rainbow Minerals ranks #1172 out of 1318 companies in the Metals & Mining industry, placing it in the top 88.9%.
Is African Rainbow Minerals' Interest Coverage too high?
African Rainbow Minerals' current Interest Coverage of 13.11 is 336% above median its 10-year median of 3.01. Over the past 10 years, this metric has ranged from a low of 0.16 to a high of 34.21. The Metals & Mining industry median Interest Coverage is 10,000.00. African Rainbow Minerals' value of 13.11 is 99.9% below this industry median. Based on the distribution chart, African Rainbow Minerals ranks #1172 out of 1318 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, African Rainbow Minerals has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does African Rainbow Minerals' Interest Coverage compare to competitors?
According to the Metals & Mining industry distribution chart, African Rainbow Minerals ranks #1172 out of 1318 companies for Interest Coverage. This places African Rainbow Minerals in the lower half of its industry. The industry median Interest Coverage is 10,000.00. African Rainbow Minerals' value of 13.11 is 99.9% below this benchmark. Historically, African Rainbow Minerals' own Interest Coverage has ranged from 0.16 to 34.21 over the past decade. While the company's 10-year median is 3.01 vs. the industry median of 10,000.00, African Rainbow Minerals has consistently been below 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 Metals & Mining company?
The median Interest Coverage among Metals & Mining companies is 10,000.00, based on 1,318 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. African Rainbow Minerals's current Interest Coverage of 13.11 is 99.9% below 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 African Rainbow Minerals and its competitors. For the Metals & Mining industry, the median Interest Coverage is 10,000.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. African Rainbow Minerals's current Interest Coverage is 13.11, which is 336% above median its own 10-year median of 3.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Rainbow Minerals stock overvalued right now?
Based on GuruFocus' analysis, African Rainbow Minerals (AFBOF) is currently considered Modestly Undervalued. The stock's GF Value™ is $12.88, compared to a current price of $11.07 — trading 14.1% below its estimated fair value. The current Interest Coverage is 13.11, which is 336% above median its 10-year median of 3.01 and 99.9% below the Metals & Mining industry median of 10,000.00. African Rainbow Minerals' overall GF Score™ is 82/100 with 6 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 African Rainbow Minerals (AFBOF), the current Interest Coverage is 13.11 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 African Rainbow Minerals (AFBOF) Overvalued in 2026?
Based on GuruFocus' analysis, African Rainbow Minerals stock appears to be undervalued.
The current stock price of $11.07 is trading 14.1% below its estimated GF Value™ of $12.88.
GuruFocus considers African Rainbow Minerals to be Modestly Undervalued.
Key valuation signals for AFBOF:
Interest Coverage: 13.11 (336% above median its 10-year median of 3.01)
GF Value™: $12.88 vs. price of $11.07 (14.1% below fair value)
Industry Position: 99.9% below the Metals & Mining median (#1172 of 1318)
No single metric tells the full story. See the AFBOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
African Rainbow Minerals Ltd is a South African diversified mining and minerals company with operations in South Africa and Malaysia. The group operates through four main segments: ARM Platinum, which includes platinum group metals and nickel; ARM Ferrous, focused on iron ore, manganese ore, and chrome ore; ARM Coal, operating mainly in the Goedgevonden Mine; and ARM Corporate, which includes Machadodorp Works, gold investments, and other activities. The company produces manganese alloys and holds a strategic investment in gold. The company generates the majority of its revenue from South Africa and maintains a presence in Europe, the Americas, and the Far and Middle East.
82GF Score
Get the complete analysis for AFBOF
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