Associated British FoodsASBFY +1.78%83 Interest Coverage is 9.25 as of Feb. 2026, which is 41% above its 10-year median of 6.56. GuruFocus rates ASBFY with a GF Score™ of 83/100 and a GF Value™ of $30.35 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,511 Consumer Packaged Goods companies, Associated British Foods ranks worse than 59.5% 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. Associated British Foods's
Operating Income
for the
six
months ended in Feb. 2026 was $855 Mil. Associated British Foods's Interest Expense for the
six
months ended in Feb. 2026 was $-92 Mil.
Associated British Foods's interest coverage for the quarter that ended in Feb. 2026 was 9.25.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Associated British Foods's Interest Coverage or its related term are showing as below:
ASBFY'
s Interest Coverage Range Over the Past 10 Years
Min: 4.37 Med: 6.56 Max: 9.03
Current: 5.61
ASBFY's Interest Coverage is ranked worse than 59.5% of 1511
companies
in the Consumer Packaged Goods industry
Industry Median: 8.63
vs ASBFY: 5.61
Associated British Foods (OTCPK:ASBFY) Interest Coverage Explanation
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 .
Associated British Foods Interest Coverage Related Terms
Associated British Foods 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 Packaged Foods subindustry, Associated British Foods'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.
Associated British Foods Interest Coverage vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Associated British Foods's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Associated British Foods's Interest Coverage falls into.
Associated British Foods Interest Coverage Calculation
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.
Associated British Foods (ASBFY) has a Interest Coverage of 9.25 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Associated British Foods and its competitors. This is 41% above median its historical median of 6.56. Over the past decade, Associated British Foods' Interest Coverage has ranged from 4.37 to 9.03. According to the industry distribution chart, Associated British Foods ranks #899 out of 1511 companies in the Consumer Packaged Goods industry, placing it in the top 59.5%.
Is Associated British Foods' Interest Coverage too high?
Associated British Foods' current Interest Coverage of 9.25 is 41% above median its 10-year median of 6.56. Over the past 10 years, this metric has ranged from a low of 4.37 to a high of 9.03. The Consumer Packaged Goods industry median Interest Coverage is 8.63. Associated British Foods' value of 9.25 is 7.2% above this industry median. Based on the distribution chart, Associated British Foods ranks #899 out of 1511 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Associated British Foods has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Associated British Foods' Interest Coverage compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Associated British Foods ranks #899 out of 1511 companies for Interest Coverage. This places Associated British Foods in the lower half of its industry. The industry median Interest Coverage is 8.63. Associated British Foods' value of 9.25 is 7.2% above this benchmark. Historically, Associated British Foods' own Interest Coverage has ranged from 4.37 to 9.03 over the past decade. While the company's 10-year median is 6.56 vs. the industry median of 8.63, Associated British Foods has consistently been above 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 Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.63, based on 1,511 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. Associated British Foods's current Interest Coverage of 9.25 is 7.2% above 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 Associated British Foods and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Associated British Foods's current Interest Coverage is 9.25, which is 41% above median its own 10-year median of 6.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Associated British Foods stock overvalued right now?
Based on GuruFocus' analysis, Associated British Foods (ASBFY) is currently considered Modestly Undervalued. The stock's GF Value™ is $30.35, compared to a current price of $26.34 — trading 13.2% below its estimated fair value. The current Interest Coverage is 9.25, which is 41% above median its 10-year median of 6.56 and 7.2% above the Consumer Packaged Goods industry median of 8.63. Associated British Foods' overall GF Score™ is 83/100 with 2 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 Associated British Foods (ASBFY), the current Interest Coverage is 9.25 as of Feb. 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 Associated British Foods (ASBFY) Overvalued in 2026?
Based on GuruFocus' analysis, Associated British Foods stock appears to be undervalued.
The current stock price of $26.34 is trading 13.2% below its estimated GF Value™ of $30.35.
GuruFocus considers Associated British Foods to be Modestly Undervalued.
Key valuation signals for ASBFY:
Interest Coverage: 9.25 (41% above median its 10-year median of 6.56)
GF Value™: $30.35 vs. price of $26.34 (13.2% below fair value)
Industry Position: 7.2% above the Consumer Packaged Goods median (#899 of 1511)
No single metric tells the full story. See the ASBFY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Associated British Foods is a diversified international food, ingredients, and retail group with 138,000 employees and operations in 56 countries across Europe, Africa, the Americas, Asia, and Australia. The group sells branded groceries, grows and processes sugar, supplies farmers with crop input and animal feed, and runs the multinational Primark clothing retail chain. It also supplies ingredients like bakers' yeast, enzymes, lipids, and cereal specialties. In fiscal 2025, approximately 36% of sales came from the UK, and Primark accounted for around 60% of operating profit.On April 21, 2026, ABF announced it plans to separate Primark and the food businesses. Subject to approvals, the demerger is expected to become effective at the end of 2027.
83GF Score
Get the complete analysis for ASBFY
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