Deterra RoyaltiesASX:DRR +1.78%65 Interest Coverage is 12.42 as of Dec. 2025, which is 86% below its 10-year median of 87.75. GuruFocus rates ASX:DRR with a GF Score™ of 65/100 and a GF Value™ of A$4.07 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,319 Metals & Mining companies, Deterra Royalties ranks worse than 78.7% 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. Deterra Royalties's
Operating Income
for the
six
months ended in Dec. 2025 was A$108.3 Mil. Deterra Royalties's Interest Expense for the
six
months ended in Dec. 2025 was A$-8.7 Mil.
Deterra Royalties's interest coverage for the quarter that ended in Dec. 2025 was 12.42.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Deterra Royalties's Interest Coverage or its related term are showing as below:
ASX:DRR'
s Interest Coverage Range Over the Past 10 Years
Min: 13.97 Med: 87.75 Max: 560.01
Current: 13.97
ASX:DRR's Interest Coverage is ranked worse than 78.7% of 1319
companies
in the Metals & Mining industry
Industry Median: No Debt
vs ASX:DRR: 13.97
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 .
Deterra Royalties Interest Coverage Related Terms
Deterra Royalties Interest Coverage Historical Data
* Premium members only.
The historical data trend for Deterra Royalties'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.
For the Other Industrial Metals & Mining subindustry, Deterra Royalties'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.
Deterra Royalties Interest Coverage vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Deterra Royalties's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Deterra Royalties'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.
Deterra Royalties (ASX:DRR) has a Interest Coverage of 12.42 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Deterra Royalties and its competitors. This is 86% below median its historical median of 87.75. Over the past decade, Deterra Royalties' Interest Coverage has ranged from 13.97 to 560.01. According to the industry distribution chart, Deterra Royalties ranks #1038 out of 1319 companies in the Metals & Mining industry, placing it in the top 78.7%.
Is Deterra Royalties' Interest Coverage too high?
Deterra Royalties' current Interest Coverage of 12.42 is 86% below median its 10-year median of 87.75. Over the past 10 years, this metric has ranged from a low of 13.97 to a high of 560.01. The Metals & Mining industry median Interest Coverage is 10,000.00. Deterra Royalties' value of 12.42 is 99.9% below this industry median. Based on the distribution chart, Deterra Royalties ranks #1038 out of 1319 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Deterra Royalties has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Deterra Royalties' Interest Coverage compare to competitors?
According to the Metals & Mining industry distribution chart, Deterra Royalties ranks #1038 out of 1319 companies for Interest Coverage. This places Deterra Royalties in the lower half of its industry. The industry median Interest Coverage is 10,000.00. Deterra Royalties' value of 12.42 is 99.9% below this benchmark. Historically, Deterra Royalties' own Interest Coverage has ranged from 13.97 to 560.01 over the past decade. While the company's 10-year median is 87.75 vs. the industry median of 10,000.00, Deterra Royalties 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 Metals & Mining company?
The median Interest Coverage among Metals & Mining companies is 10,000.00, based on 1,319 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. Deterra Royalties's current Interest Coverage of 12.42 is 99.9% 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 Deterra Royalties and its competitors. For the Metals & Mining industry, the median Interest Coverage is 10,000.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deterra Royalties's current Interest Coverage is 12.42, which is 86% below median its own 10-year median of 87.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deterra Royalties stock overvalued right now?
Based on GuruFocus' analysis, Deterra Royalties (ASX:DRR) is currently considered Modestly Overvalued. The stock's GF Value™ is A$4.07, compared to a current price of A$4.58 — trading 12.5% above its estimated fair value. The current Interest Coverage is 12.42, which is 86% below median its 10-year median of 87.75 and 99.9% below the Metals & Mining industry median of 10,000.00. Deterra Royalties' overall GF Score™ is 65/100 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 Deterra Royalties (ASX:DRR), the current Interest Coverage is 12.42 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 Deterra Royalties (ASX:DRR) Overvalued in 2026?
Based on GuruFocus' analysis, Deterra Royalties stock appears to be overvalued.
The current stock price of A$4.58 is trading 12.5% above its estimated GF Value™ of A$4.07.
GuruFocus considers Deterra Royalties to be Modestly Overvalued.
Key valuation signals for ASX:DRR:
Interest Coverage: 12.42 (86% below median its 10-year median of 87.75)
GF Value™: A$4.07 vs. price of A$4.58 (12.5% above fair value)
Industry Position: 99.9% below the Metals & Mining median (#1038 of 1319)
No single metric tells the full story. See the ASX:DRR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deterra Royalties was spun out from Iluka Resources in October 2020, with Iluka retaining a 20% interest. Its only material income generating asset is a royalty covering iron ore produced by BHP from the Mining Area C royalty area in Western Australia. This includes the North Flank mine, producing around 60 million metric tons of iron ore a year, and the South Flank mine, which produces around 80 million metric tons. It also covers most of the Tandanya and Mudlark deposits, which BHP intends to develop in the longer term as part of its plan to operate the MAC production hub for at least 50 years. Consistent with its strategy to grow into a diversified royalty firm, its Trident Royalties purchase is likely to provide modest diversification from iron ore.
65GF Score
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