Energy ActionASX:EAX 42 Interest Coverage is 6.01 as of Dec. 2025, which is 65% above its 10-year median of 3.65. GuruFocus rates ASX:EAX with a GF Score™ of 42/100 and a GF Value™ of A$0.24 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 812 Business Services companies, Energy Action ranks worse than 64.9% 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. Energy Action's
Operating Income
for the
six
months ended in Dec. 2025 was A$0.85 Mil. Energy Action's Interest Expense for the
six
months ended in Dec. 2025 was A$-0.14 Mil.
Energy Action's interest coverage for the quarter that ended in Dec. 2025 was 6.01.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Energy Action's Interest Coverage or its related term are showing as below:
ASX:EAX'
s Interest Coverage Range Over the Past 10 Years
Min: 0.81 Med: 3.65 Max: 9.61
Current: 5.91
ASX:EAX's Interest Coverage is ranked worse than 64.9% of 812
companies
in the Business Services industry
Industry Median: 12.98
vs ASX:EAX: 5.91
Energy Action (ASX:EAX) 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 .
Energy Action Interest Coverage Related Terms
Energy Action Interest Coverage Historical Data
* Premium members only.
The historical data trend for Energy Action'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:EAX vs CTAS, CPRT, ULS: Interest Coverage Comparison
For the Specialty Business Services subindustry, Energy Action'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.
Energy Action Interest Coverage vs Business Services Industry
For the Business Services industry and Industrials sector, Energy Action's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Energy Action'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.
Energy Action (ASX:EAX) has a Interest Coverage of 6.01 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Energy Action and its competitors. This is 65% above median its historical median of 3.65. Over the past decade, Energy Action's Interest Coverage has ranged from 0.81 to 9.61. According to the industry distribution chart, Energy Action ranks #527 out of 812 companies in the Business Services industry, placing it in the top 64.9%.
Is Energy Action's Interest Coverage too high?
Energy Action's current Interest Coverage of 6.01 is 65% above median its 10-year median of 3.65. Over the past 10 years, this metric has ranged from a low of 0.81 to a high of 9.61. The Business Services industry median Interest Coverage is 12.98. Energy Action's value of 6.01 is 53.7% below this industry median. Based on the distribution chart, Energy Action ranks #527 out of 812 companies in the Business Services industry, which is below the industry midpoint. Overall, Energy Action has a GF Score™ of 42/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Energy Action's Interest Coverage compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Energy Action ranks #527 out of 812 companies for Interest Coverage. This places Energy Action in the lower half of its industry. The industry median Interest Coverage is 12.98. Energy Action's value of 6.01 is 53.7% below this benchmark. Historically, Energy Action's own Interest Coverage has ranged from 0.81 to 9.61 over the past decade. While the company's 10-year median is 3.65 vs. the industry median of 12.98, Energy Action 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 Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 812 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. Energy Action's current Interest Coverage of 6.01 is 53.7% 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 Energy Action and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Action's current Interest Coverage is 6.01, which is 65% above median its own 10-year median of 3.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Energy Action stock overvalued right now?
Based on GuruFocus' analysis, Energy Action (ASX:EAX) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.24, compared to a current price of A$0.42 — trading 72.9% above its estimated fair value. The current Interest Coverage is 6.01, which is 65% above median its 10-year median of 3.65 and 53.7% below the Business Services industry median of 12.98. Energy Action's overall GF Score™ is 42/100 with 2 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 Energy Action (ASX:EAX), the current Interest Coverage is 6.01 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 Energy Action (ASX:EAX) Overvalued in 2026?
Based on GuruFocus' analysis, Energy Action stock appears to be overvalued.
The current stock price of A$0.42 is trading 72.9% above its estimated GF Value™ of A$0.24.
GuruFocus considers Energy Action to be Significantly Overvalued.
Key valuation signals for ASX:EAX:
Interest Coverage: 6.01 (65% above median its 10-year median of 3.65)
GF Value™: A$0.24 vs. price of A$0.42 (72.9% above fair value)
Industry Position: 53.7% below the Business Services median (#527 of 812)
No single metric tells the full story. See the ASX:EAX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Energy Action Ltd is engaged in providing integrated energy management services to a diverse base of commercial, industrial, and small and medium-sized business customers. It offers electricity and gas procurement services in Australia. The company's core services include Procurement, Energy Managed Services, Retail Services, and Other. The company has one operating segment, which provides electricity and gas procurement services, energy management, and retail billing services in Australia. The company provides various services such as Energy Buying, Energy Management, and Embedded Networks. It derives a majority of its revenues from Energy procurement.
42GF Score
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