HealthCo Healthcare and Wellness REIT (ASX:HCW) Interest Coverage: 1.05 (As of Jun. 2026) — 35% Below Median

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ASX:HCW HealthCo Healthcare and Wellness REIT ASX:HCW
33 GF Score
Price A$0.72
GF Value A$0.83
Valuation Modestly Undervalued
! 7 Warning Signs
View Full Analysis

What is HealthCo Healthcare and Wellness REIT Interest Coverage?

HealthCo Healthcare and Wellness REIT ASX:HCW -0.69% 33 Interest Coverage is 1.05 as of Jun. 2026, which is 35% below its 10-year median of 1.61. GuruFocus rates ASX:HCW with a GF Score™ of 33/100 and a GF Value™ of A$0.83 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 682 REITs companies, HealthCo Healthcare and Wellness REIT ranks worse than 80.5% 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. HealthCo Healthcare and Wellness REIT's Operating Income for the six months ended in Jun. 2026 was A$12.30 Mil. HealthCo Healthcare and Wellness REIT's Interest Expense for the six months ended in Jun. 2026 was A$-11.70 Mil. HealthCo Healthcare and Wellness REIT's interest coverage for the quarter that ended in Jun. 2026 was 1.05. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. HealthCo Healthcare and Wellness REIT interest coverage is 1.43, which is low.

The historical rank and industry rank for HealthCo Healthcare and Wellness REIT's Interest Coverage or its related term are showing as below:

ASX:HCW' s Interest Coverage Range Over the Past 10 Years
Min: 1.31   Med: 1.61   Max: 4.13
Current: 1.43


ASX:HCW's Interest Coverage is ranked worse than
80.5% of 682 companies
in the REITs industry
Industry Median: 3.07 vs ASX:HCW: 1.43

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


HealthCo Healthcare and Wellness REIT  (ASX:HCW) 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 .


HealthCo Healthcare and Wellness REIT Interest Coverage Related Terms


HealthCo Healthcare and Wellness REIT Interest Coverage Historical Data

* Premium members only.

The historical data trend for HealthCo Healthcare and Wellness REIT'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.

HealthCo Healthcare and Wellness REIT Interest Coverage Chart

HealthCo Healthcare and Wellness REIT Annual Data
Trend Jun22 Jun23 Jun24 Jun25 Jun26
Interest Coverage
4.13 1.75 1.61 1.31 1.43

HealthCo Healthcare and Wellness REIT Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.15 1.46 1.17 1.79 1.05

ASX:HCW vs WELL, VTR, OHI: Interest Coverage Comparison

For the REIT - Healthcare Facilities subindustry, HealthCo Healthcare and Wellness REIT'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.


HealthCo Healthcare and Wellness REIT Interest Coverage vs REITs Industry

For the REITs industry and Real Estate sector, HealthCo Healthcare and Wellness REIT's Interest Coverage distribution charts can be found below:

* The bar in red indicates where HealthCo Healthcare and Wellness REIT's Interest Coverage falls into.


ASX:HCW
33GF Score
HealthCo Healthcare and Wellness REIT ASX:HCW
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

HealthCo Healthcare and Wellness REIT 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.

HealthCo Healthcare and Wellness REIT's Interest Coverage for the fiscal year that ended in Jun. 2026 is calculated as

Here, for the fiscal year that ended in Jun. 2026, HealthCo Healthcare and Wellness REIT's Interest Expense was A$-24.10 Mil. Its Operating Income was A$34.50 Mil. And its Long-Term Debt & Capital Lease Obligation was A$2.90 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2026 )/Interest Expense (A: Jun. 2026 )
=-1*34.5/-24.1
=1.43

HealthCo Healthcare and Wellness REIT's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the six months ended in Jun. 2026, HealthCo Healthcare and Wellness REIT's Interest Expense was A$-11.70 Mil. Its Operating Income was A$12.30 Mil. And its Long-Term Debt & Capital Lease Obligation was A$2.90 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*12.3/-11.7
=1.05

* 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 1.05 mean?
HealthCo Healthcare and Wellness REIT (ASX:HCW) has a Interest Coverage of 1.05 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on HealthCo Healthcare and Wellness REIT and its competitors. This is 35% below median its historical median of 1.61. Over the past decade, HealthCo Healthcare and Wellness REIT's Interest Coverage has ranged from 1.31 to 4.13. According to the industry distribution chart, HealthCo Healthcare and Wellness REIT ranks #549 out of 682 companies in the REITs industry, placing it in the top 80.5%.
Is HealthCo Healthcare and Wellness REIT's Interest Coverage too high?
HealthCo Healthcare and Wellness REIT's current Interest Coverage of 1.05 is 35% below median its 10-year median of 1.61. Over the past 10 years, this metric has ranged from a low of 1.31 to a high of 4.13. The REITs industry median Interest Coverage is 3.07. HealthCo Healthcare and Wellness REIT's value of 1.05 is 65.8% below this industry median. Based on the distribution chart, HealthCo Healthcare and Wellness REIT ranks #549 out of 682 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, HealthCo Healthcare and Wellness REIT has a GF Score™ of 33/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HealthCo Healthcare and Wellness REIT's Interest Coverage compare to WELL and VTR?
According to the REITs industry distribution chart, HealthCo Healthcare and Wellness REIT ranks #549 out of 682 companies for Interest Coverage. This places HealthCo Healthcare and Wellness REIT in the lower half of its industry. The industry median Interest Coverage is 3.07. HealthCo Healthcare and Wellness REIT's value of 1.05 is 65.8% below this benchmark. Historically, HealthCo Healthcare and Wellness REIT's own Interest Coverage has ranged from 1.31 to 4.13 over the past decade. While the company's 10-year median is 1.61 vs. the industry median of 3.07, HealthCo Healthcare and Wellness REIT 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 REITs company?
The median Interest Coverage among REITs companies is 3.07, based on 682 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. HealthCo Healthcare and Wellness REIT's current Interest Coverage of 1.05 is 65.8% 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 HealthCo Healthcare and Wellness REIT and its competitors. For the REITs industry, the median Interest Coverage is 3.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HealthCo Healthcare and Wellness REIT's current Interest Coverage is 1.05, which is 35% below median its own 10-year median of 1.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HealthCo Healthcare and Wellness REIT stock overvalued right now?
Based on GuruFocus' analysis, HealthCo Healthcare and Wellness REIT (ASX:HCW) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.83, compared to a current price of A$0.72 — trading 13.9% below its estimated fair value. The current Interest Coverage is 1.05, which is 35% below median its 10-year median of 1.61 and 65.8% below the REITs industry median of 3.07. HealthCo Healthcare and Wellness REIT's overall GF Score™ is 33/100 with 7 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 HealthCo Healthcare and Wellness REIT (ASX:HCW), the current Interest Coverage is 1.05 as of Jun. 2026. 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 HealthCo Healthcare and Wellness REIT (ASX:HCW) Overvalued in 2026?

Based on GuruFocus' analysis, HealthCo Healthcare and Wellness REIT stock appears to be undervalued. The current stock price of A$0.72 is trading 13.9% below its estimated GF Value™ of A$0.83. GuruFocus considers HealthCo Healthcare and Wellness REIT to be Modestly Undervalued.

Key valuation signals for ASX:HCW:

  • Interest Coverage: 1.05 (35% below median its 10-year median of 1.61)
  • GF Value™: A$0.83 vs. price of A$0.72 (13.9% below fair value)
  • GF Score™: 33/100 with 7 warning signs
  • Industry Position: 65.8% below the REITs median (#549 of 682)

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


HealthCo Healthcare and Wellness REIT Business Description

Industry Real EstateREITs
Address 1 Macquarie Place, Level 7, Gateway, Sydney, NSW, AUS, 2000
HealthCo Healthcare and Wellness REIT are owning and managing a portfolio of commercial health and wellness real estate assets. It invests in high conviction and scalable real asset strategies on behalf of individuals, large institutions and super funds.
33GF Score

Get the complete analysis for ASX:HCW

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

A$0.72
Price
A$0.83
GF Value