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. Canadian Phosphate's
Operating Income
for the
six
months ended in Dec. 2025 was A$-0.58 Mil. Canadian Phosphate's Interest Expense for the
six
months ended in Dec. 2025 was A$-0.06 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Canadian Phosphate's Interest Coverage or its related term are showing as below:
ASX:CP8's Interest Coverage is not ranked *
in the Agriculture industry.
Industry Median: 7.18 * Ranked among companies with meaningful Interest Coverage only.
Canadian Phosphate (ASX:CP8) 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 .
Canadian Phosphate Interest Coverage Related Terms
Canadian Phosphate Interest Coverage Historical Data
* Premium members only.
The historical data trend for Canadian Phosphate'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:CP8 vs CTVA, CF, MOS: Interest Coverage Comparison
For the Agricultural Inputs subindustry, Canadian Phosphate'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.
Canadian Phosphate Interest Coverage vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Canadian Phosphate's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Canadian Phosphate'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:
Canadian Phosphate did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Canadian Phosphate (ASX:CP8) has a Interest Coverage of 0 (At Loss) as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Canadian Phosphate and its competitors. According to the industry distribution chart, Canadian Phosphate ranks #999999 out of 199 companies in the Agriculture industry.
Is Canadian Phosphate's Interest Coverage too high?
Canadian Phosphate's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Canadian Phosphate ranks #999999 out of 199 companies in the Agriculture industry, which is in the bottom quartile relative to peers. Overall, Canadian Phosphate has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Canadian Phosphate's Interest Coverage compare to CTVA and CF?
According to the Agriculture industry distribution chart, Canadian Phosphate ranks #999999 out of 199 companies for Interest Coverage. This places Canadian Phosphate in the lower half of its industry. The industry median Interest Coverage is 7.18. 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 an Agriculture company?
The median Interest Coverage among Agriculture companies is 7.18, based on 199 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. 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 Canadian Phosphate and its competitors. For the Agriculture industry, the median Interest Coverage is 7.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian Phosphate's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canadian Phosphate stock overvalued right now?
Based on GuruFocus' analysis, Canadian Phosphate (ASX:CP8) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.03, compared to a current price of A$0.12 — trading 300% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Canadian Phosphate's overall GF Score™ is 36/100 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 Canadian Phosphate (ASX:CP8), the current Interest Coverage is 0 (At Loss) 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 Canadian Phosphate (ASX:CP8) Overvalued in 2026?
Based on GuruFocus' analysis, Canadian Phosphate stock appears to be overvalued.
The current stock price of A$0.12 is trading 300% above its estimated GF Value™ of A$0.03.
GuruFocus considers Canadian Phosphate to be Significantly Overvalued.
Key valuation signals for ASX:CP8:
Interest Coverage: 0 (At Loss)
GF Value™: A$0.03 vs. price of A$0.12 (300% above fair value)
No single metric tells the full story. See the ASX:CP8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Canadian Phosphate Ltd is a miner, manufacturer, and distributor of rock phosphate fertilizer, focused on advancing its Wapiti and Fernie sedimentary rock phosphate projects in British Columbia, Canada. The company is organised into two operating segments based on geographical location, being Australian and North American operations. A majority of its revenue is generated from its North American operations, through the sale of phosphate fertilizers.
36GF Score
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