ARBASX:ARB -1.98%91 Interest Coverage is 59.91 as of Dec. 2025, which is 61% below its 10-year median of 154.40. GuruFocus rates ASX:ARB with a GF Score™ of 91/100 and a GF Value™ of A$35.39 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,066 Vehicles & Parts companies, ARB ranks better than 80.96% 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. ARB's
Operating Income
for the
six
months ended in Dec. 2025 was A$64.8 Mil. ARB's Interest Expense for the
six
months ended in Dec. 2025 was A$-1.1 Mil.
ARB's interest coverage for the quarter that ended in Dec. 2025 was 59.91.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for ARB's Interest Coverage or its related term are showing as below:
ASX:ARB'
s Interest Coverage Range Over the Past 10 Years
Min: 39.89 Med: 154.4 Max: 5926.55
Current: 50.65
ASX:ARB's Interest Coverage is ranked better than 80.96% of 1066
companies
in the Vehicles & Parts industry
Industry Median: 8.295
vs ASX:ARB: 50.65
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 .
ARB Interest Coverage Related Terms
ARB Interest Coverage Historical Data
* Premium members only.
The historical data trend for ARB'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:ARB vs ORLY, AZO: Interest Coverage Comparison
For the Auto Parts subindustry, ARB'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.
ARB Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, ARB's Interest Coverage distribution charts can be found below:
* The bar in red indicates where ARB'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.
ARB (ASX:ARB) has a Interest Coverage of 59.91 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ARB and its competitors. This is 61% below median its historical median of 154.40. Over the past decade, ARB's Interest Coverage has ranged from 39.89 to 5,926.55. According to the industry distribution chart, ARB ranks #203 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 19%.
Is ARB's Interest Coverage too high?
ARB's current Interest Coverage of 59.91 is 61% below median its 10-year median of 154.40. Over the past 10 years, this metric has ranged from a low of 39.89 to a high of 5,926.55. The Vehicles & Parts industry median Interest Coverage is 8.30. ARB's value of 59.91 is 622.2% above this industry median. Based on the distribution chart, ARB ranks #203 out of 1066 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, ARB has a GF Score™ of 91/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ARB's Interest Coverage compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, ARB ranks #203 out of 1066 companies for Interest Coverage. This places ARB in the top 19% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.30. ARB's value of 59.91 is 622.2% above this benchmark. Historically, ARB's own Interest Coverage has ranged from 39.89 to 5,926.55 over the past decade. While the company's 10-year median is 154.40 vs. the industry median of 8.30, ARB 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.30, based on 1,066 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. ARB's current Interest Coverage of 59.91 is 622.2% 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 ARB and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARB's current Interest Coverage is 59.91, which is 61% below median its own 10-year median of 154.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARB stock overvalued right now?
Based on GuruFocus' analysis, ARB (ASX:ARB) is currently considered Significantly Undervalued. The stock's GF Value™ is A$35.39, compared to a current price of A$18.80 — trading 46.9% below its estimated fair value. The current Interest Coverage is 59.91, which is 61% below median its 10-year median of 154.40 and 622.2% above the Vehicles & Parts industry median of 8.30. ARB's overall GF Score™ is 91/100 with 3 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 ARB (ASX:ARB), the current Interest Coverage is 59.91 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 ARB (ASX:ARB) Overvalued in 2026?
Based on GuruFocus' analysis, ARB stock appears to be undervalued.
The current stock price of A$18.80 is trading 46.9% below its estimated GF Value™ of A$35.39.
GuruFocus considers ARB to be Significantly Undervalued.
Key valuation signals for ASX:ARB:
Interest Coverage: 59.91 (61% below median its 10-year median of 154.40)
GF Value™: A$35.39 vs. price of A$18.80 (46.9% below fair value)
Industry Position: 622.2% above the Vehicles & Parts median (#203 of 1066)
No single metric tells the full story. See the ASX:ARB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ARB designs, manufactures, and distributes four-wheel-drive and light commercial vehicle accessories. The firm has carved a niche with aftermarket accessories including bull bars, suspension systems, differentials, and lighting. ARB operates manufacturing plants in Australia and Thailand and sales and distribution centers across several countries. The Australian division, which generates the vast majority of group earnings, distributes through the ARB store network, ARB stockists, new-vehicle dealers, and fleet operators.
91GF Score
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