Shepherd NeameAQSE:SHEP 73 Interest Coverage is 1.93 as of Jun. 2025, which is 20% below its 10-year median of 2.41. GuruFocus rates AQSE:SHEP with a GF Score™ of 73/100 and a GF Value™ of £6.75 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 261 Restaurants companies, Shepherd Neame ranks worse than 80.84% 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. Shepherd Neame's
Operating Income
for the
six
months ended in Jun. 2025 was £6.0 Mil. Shepherd Neame's Interest Expense for the
six
months ended in Jun. 2025 was £-3.1 Mil.
Shepherd Neame's interest coverage for the quarter that ended in Jun. 2025 was 1.93.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Shepherd Neame's Interest Coverage or its related term are showing as below:
AQSE:SHEP'
s Interest Coverage Range Over the Past 10 Years
Min: 0.19 Med: 2.41 Max: 4.02
Current: 2.16
AQSE:SHEP's Interest Coverage is ranked worse than 80.84% of 261
companies
in the Restaurants industry
Industry Median: 6.46
vs AQSE:SHEP: 2.16
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 .
Shepherd Neame Interest Coverage Related Terms
Shepherd Neame Interest Coverage Historical Data
* Premium members only.
The historical data trend for Shepherd Neame's Interest Coverage can be seen below:
* 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.
AQSE:SHEP vs MCD, SBUX, YUM: Interest Coverage Comparison
For the Restaurants subindustry, Shepherd Neame'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.
Shepherd Neame Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Shepherd Neame's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Shepherd Neame'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.
Shepherd Neame (AQSE:SHEP) has a Interest Coverage of 1.93 as of Jun. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Shepherd Neame and its competitors. This is 20% below median its historical median of 2.41. Over the past decade, Shepherd Neame's Interest Coverage has ranged from 0.19 to 4.02. According to the industry distribution chart, Shepherd Neame ranks #211 out of 261 companies in the Restaurants industry, placing it in the top 80.8%.
Is Shepherd Neame's Interest Coverage too high?
Shepherd Neame's current Interest Coverage of 1.93 is 20% below median its 10-year median of 2.41. Over the past 10 years, this metric has ranged from a low of 0.19 to a high of 4.02. The Restaurants industry median Interest Coverage is 6.46. Shepherd Neame's value of 1.93 is 70.1% below this industry median. Based on the distribution chart, Shepherd Neame ranks #211 out of 261 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Shepherd Neame has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shepherd Neame's Interest Coverage compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Shepherd Neame ranks #211 out of 261 companies for Interest Coverage. This places Shepherd Neame in the lower half of its industry. The industry median Interest Coverage is 6.46. Shepherd Neame's value of 1.93 is 70.1% below this benchmark. Historically, Shepherd Neame's own Interest Coverage has ranged from 0.19 to 4.02 over the past decade. While the company's 10-year median is 2.41 vs. the industry median of 6.46, Shepherd Neame 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 Restaurants company?
The median Interest Coverage among Restaurants companies is 6.46, based on 261 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. Shepherd Neame's current Interest Coverage of 1.93 is 70.1% 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 Shepherd Neame and its competitors. For the Restaurants industry, the median Interest Coverage is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shepherd Neame's current Interest Coverage is 1.93, which is 20% below median its own 10-year median of 2.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shepherd Neame stock overvalued right now?
Based on GuruFocus' analysis, Shepherd Neame (AQSE:SHEP) is currently considered Modestly Undervalued. The stock's GF Value™ is £6.75, compared to a current price of £5.05 — trading 25.2% below its estimated fair value. The current Interest Coverage is 1.93, which is 20% below median its 10-year median of 2.41 and 70.1% below the Restaurants industry median of 6.46. Shepherd Neame's overall GF Score™ is 73/100 with 4 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 Shepherd Neame (AQSE:SHEP), the current Interest Coverage is 1.93 as of Jun. 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 Shepherd Neame (AQSE:SHEP) Overvalued in 2026?
Based on GuruFocus' analysis, Shepherd Neame stock appears to be undervalued.
The current stock price of £5.05 is trading 25.2% below its estimated GF Value™ of £6.75.
GuruFocus considers Shepherd Neame to be Modestly Undervalued.
Key valuation signals for AQSE:SHEP:
Interest Coverage: 1.93 (20% below median its 10-year median of 2.41)
GF Value™: £6.75 vs. price of £5.05 (25.2% below fair value)
Industry Position: 70.1% below the Restaurants median (#211 of 261)
No single metric tells the full story. See the AQSE:SHEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shepherd Neame Ltd brews and packages beer, wholesales and retails beer, cider, wines, spirits, and minerals, owns property and public houses, and provides hotel management services. Its segments are Brewing and Brands, Retail Pubs and Hotels, and Tenanted Pubs, with the majority of revenue coming from Retail Pubs and Hotels. The company brews and distributes its own beers, including Spitfire, Bishops Finger, Whitstable Bay, Bear Island, Creekside IPA, First Drop Session IPA, and Iron Wharf Stout. It also brews licensed international lagers like Singha. The company operates in the UK and internationally, with the majority of revenue coming from the UK.
73GF Score
Get the complete analysis for AQSE:SHEP
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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