DGL Group (ASX:DGL) Interest Coverage: 0.88 (As of Dec. 2025) — 86% Below Median


ASX:DGL DGL Group Ltd ASX:DGL
36 GF Score
Price A$0.31
GF Value A$0.61
Valuation Possible Value Trap
! 6 Warning Signs
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What is DGL Group Interest Coverage?

DGL Group ASX:DGL -3.13% 36 Interest Coverage is 0.88 as of Dec. 2025, which is 86% below its 10-year median of 6.28. GuruFocus rates ASX:DGL with a GF Score™ of 36/100 and a GF Value™ of A$0.61 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,237 Chemicals companies, DGL Group ranks worse than 95.39% 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. DGL Group's Operating Income for the six months ended in Dec. 2025 was A$5.1 Mil. DGL Group's Interest Expense for the six months ended in Dec. 2025 was A$-5.7 Mil. DGL Group's interest coverage for the quarter that ended in Dec. 2025 was 0.88. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for DGL Group's Interest Coverage or its related term are showing as below:

ASX:DGL' s Interest Coverage Range Over the Past 10 Years
Min: 0.81   Med: 6.28   Max: 36.13
Current: 0.81


ASX:DGL's Interest Coverage is ranked worse than
95.39% of 1237 companies
in the Chemicals industry
Industry Median: 10.21 vs ASX:DGL: 0.81

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


DGL Group  (ASX:DGL) 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 .


DGL Group Interest Coverage Related Terms


DGL Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for DGL 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.

DGL Group Interest Coverage Chart

DGL Group Annual Data
Trend Jun21 Jun22 Jun23 Jun24 Jun25
Interest Coverage
7.03 36.13 6.28 3.35 1.06

DGL Group Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 2.78 4.02 1.37 0.74 0.88

ASX:DGL vs LIN, SHW, ECL: Interest Coverage Comparison

For the Specialty Chemicals subindustry, DGL 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.


DGL Group Interest Coverage vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, DGL Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where DGL Group's Interest Coverage falls into.


ASX:DGL
36GF Score
DGL Group Ltd ASX:DGL
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

DGL Group 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

DGL Group's Interest Coverage for the fiscal year that ended in Jun. 2025 is calculated as

Here, for the fiscal year that ended in Jun. 2025, DGL Group's Interest Expense was A$-12.0 Mil. Its Operating Income was A$12.7 Mil. And its Long-Term Debt & Capital Lease Obligation was A$153.5 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*12.677/-12.008
=1.06

DGL Group's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, DGL Group's Interest Expense was A$-5.7 Mil. Its Operating Income was A$5.1 Mil. And its Long-Term Debt & Capital Lease Obligation was A$77.9 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*5.052/-5.723
=0.88

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 0.88 mean?
DGL Group (ASX:DGL) has a Interest Coverage of 0.88 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on DGL Group and its competitors. This is 86% below median its historical median of 6.28. Over the past decade, DGL Group's Interest Coverage has ranged from 0.81 to 36.13. According to the industry distribution chart, DGL Group ranks #1180 out of 1237 companies in the Chemicals industry, placing it in the top 95.4%.
Is DGL Group's Interest Coverage too high?
DGL Group's current Interest Coverage of 0.88 is 86% below median its 10-year median of 6.28. Over the past 10 years, this metric has ranged from a low of 0.81 to a high of 36.13. The Chemicals industry median Interest Coverage is 10.21. DGL Group's value of 0.88 is 91.4% below this industry median. Based on the distribution chart, DGL Group ranks #1180 out of 1237 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, DGL Group has a GF Score™ of 36/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does DGL Group's Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, DGL Group ranks #1180 out of 1237 companies for Interest Coverage. This places DGL Group in the lower half of its industry. The industry median Interest Coverage is 10.21. DGL Group's value of 0.88 is 91.4% below this benchmark. Historically, DGL Group's own Interest Coverage has ranged from 0.81 to 36.13 over the past decade. While the company's 10-year median is 6.28 vs. the industry median of 10.21, DGL 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.21, based on 1,237 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. DGL Group's current Interest Coverage of 0.88 is 91.4% 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 DGL Group and its competitors. For the Chemicals industry, the median Interest Coverage is 10.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DGL Group's current Interest Coverage is 0.88, which is 86% below median its own 10-year median of 6.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DGL Group stock overvalued right now?
Based on GuruFocus' analysis, DGL Group (ASX:DGL) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.61, compared to a current price of A$0.31 — trading 49.2% below its estimated fair value. The current Interest Coverage is 0.88, which is 86% below median its 10-year median of 6.28 and 91.4% below the Chemicals industry median of 10.21. DGL Group's overall GF Score™ is 36/100 with 6 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 DGL Group (ASX:DGL), the current Interest Coverage is 0.88 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 DGL Group (ASX:DGL) Overvalued in 2026?

Based on GuruFocus' analysis, DGL Group stock appears to be undervalued. The current stock price of A$0.31 is trading 49.2% below its estimated GF Value™ of A$0.61. GuruFocus considers DGL Group to be Possible Value Trap.

Key valuation signals for ASX:DGL:

  • Interest Coverage: 0.88 (86% below median its 10-year median of 6.28)
  • GF Value™: A$0.61 vs. price of A$0.31 (49.2% below fair value)
  • GF Score™: 36/100 with 6 warning signs
  • Industry Position: 91.4% below the Chemicals median (#1180 of 1237)

No single metric tells the full story. See the ASX:DGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


DGL Group Business Description

Address 80 George Street, Level 1, Suite 2, Parramatta, NSW, AUS, 2150
DGL Group Ltd is an investment holding company. The company's segment includes Chemical Manufacturing, Logistics and Environmental Services. It generates maximum revenue from the Chemical Manufacturing segment. The Chemical Manufacturing segment produces its own range of speciality chemicals and undertakes formulation and contract manufacturing on behalf of third parties.
36GF Score

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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$0.31
Price
A$0.61
GF Value