Adore Beauty GroupASX:ABY -1.67%41 Interest Coverage is 2.16 as of Dec. 2025, which is 88% below its 10-year median of 18.40. GuruFocus rates ASX:ABY with a GF Score™ of 41/100 and a GF Value™ of A$1.08 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 828 Retail - Cyclical companies, Adore Beauty Group ranks worse than 72.83% 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. Adore Beauty Group's
Operating Income
for the
six
months ended in Dec. 2025 was A$1.3 Mil. Adore Beauty Group's Interest Expense for the
six
months ended in Dec. 2025 was A$-0.6 Mil.
Adore Beauty Group's interest coverage for the quarter that ended in Dec. 2025 was 2.16.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Adore Beauty Group's Interest Coverage or its related term are showing as below:
ASX:ABY'
s Interest Coverage Range Over the Past 10 Years
Min: 2.53 Med: 18.4 Max: 27.79
Current: 3.23
ASX:ABY's Interest Coverage is ranked worse than 72.83% of 828
companies
in the Retail - Cyclical industry
Industry Median: 7.915
vs ASX:ABY: 3.23
Adore Beauty Group (ASX:ABY) 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 .
Adore Beauty Group Interest Coverage Related Terms
Adore Beauty Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Adore Beauty Group'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.
ASX:ABY vs CASY, WSM, ULTA: Interest Coverage Comparison
For the Specialty Retail subindustry, Adore Beauty Group'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.
Adore Beauty Group Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Adore Beauty Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Adore Beauty Group'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.
Adore Beauty Group (ASX:ABY) has a Interest Coverage of 2.16 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Adore Beauty Group and its competitors. This is 88% below median its historical median of 18.40. Over the past decade, Adore Beauty Group's Interest Coverage has ranged from 2.53 to 27.79. According to the industry distribution chart, Adore Beauty Group ranks #603 out of 828 companies in the Retail - Cyclical industry, placing it in the top 72.8%.
Is Adore Beauty Group's Interest Coverage too high?
Adore Beauty Group's current Interest Coverage of 2.16 is 88% below median its 10-year median of 18.40. Over the past 10 years, this metric has ranged from a low of 2.53 to a high of 27.79. The Retail - Cyclical industry median Interest Coverage is 7.92. Adore Beauty Group's value of 2.16 is 72.7% below this industry median. Based on the distribution chart, Adore Beauty Group ranks #603 out of 828 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Adore Beauty Group has a GF Score™ of 41/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Adore Beauty Group's Interest Coverage compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Adore Beauty Group ranks #603 out of 828 companies for Interest Coverage. This places Adore Beauty Group in the lower half of its industry. The industry median Interest Coverage is 7.92. Adore Beauty Group's value of 2.16 is 72.7% below this benchmark. Historically, Adore Beauty Group's own Interest Coverage has ranged from 2.53 to 27.79 over the past decade. While the company's 10-year median is 18.40 vs. the industry median of 7.92, Adore Beauty Group 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 Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.92, based on 828 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. Adore Beauty Group's current Interest Coverage of 2.16 is 72.7% 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 Adore Beauty Group and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adore Beauty Group's current Interest Coverage is 2.16, which is 88% below median its own 10-year median of 18.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adore Beauty Group stock overvalued right now?
Based on GuruFocus' analysis, Adore Beauty Group (ASX:ABY) is currently considered Possible Value Trap. The stock's GF Value™ is A$1.08, compared to a current price of A$0.30 — trading 72.7% below its estimated fair value. The current Interest Coverage is 2.16, which is 88% below median its 10-year median of 18.40 and 72.7% below the Retail - Cyclical industry median of 7.92. Adore Beauty Group's overall GF Score™ is 41/100 with 5 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 Adore Beauty Group (ASX:ABY), the current Interest Coverage is 2.16 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 Adore Beauty Group (ASX:ABY) Overvalued in 2026?
Based on GuruFocus' analysis, Adore Beauty Group stock appears to be undervalued.
The current stock price of A$0.30 is trading 72.7% below its estimated GF Value™ of A$1.08.
GuruFocus considers Adore Beauty Group to be Possible Value Trap.
Key valuation signals for ASX:ABY:
Interest Coverage: 2.16 (88% below median its 10-year median of 18.40)
GF Value™: A$1.08 vs. price of A$0.30 (72.7% below fair value)
Industry Position: 72.7% below the Retail - Cyclical median (#603 of 828)
No single metric tells the full story. See the ASX:ABY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adore Beauty Group Ltd is engaged in the online sales of cosmetics. It offers various products including skin care, hair care, body care, cosmetics, fragrances, oral care, and dietary supplements among others. The firm generates revenue through the sale of beauty and personal care products online. The Group has identified two distinct operating segments based on quantitative thresholds on profit or loss, encompassing the Adore Beauty and iKOU brands.
41GF Score
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