HMC CapitalASX:HMC +0.68%62 Interest Coverage is 1.25 as of Dec. 2025, which is 51% below its 10-year median of 2.54. GuruFocus rates ASX:HMC with a GF Score™ of 62/100 and a GF Value™ of A$14.15 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 700 REITs companies, HMC Capital ranks better than 63.86% 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. HMC Capital's
Operating Income
for the
six
months ended in Dec. 2025 was A$15.3 Mil. HMC Capital's Interest Expense for the
six
months ended in Dec. 2025 was A$-12.2 Mil.
HMC Capital's interest coverage for the quarter that ended in Dec. 2025 was 1.25.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for HMC Capital's Interest Coverage or its related term are showing as below:
ASX:HMC'
s Interest Coverage Range Over the Past 10 Years
Min: 1.01 Med: 2.54 Max: 7.42
Current: 4.66
ASX:HMC's Interest Coverage is ranked better than 63.86% of 700
companies
in the REITs industry
Industry Median: 3.095
vs ASX:HMC: 4.66
HMC Capital (ASX:HMC) 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 .
HMC Capital Interest Coverage Related Terms
HMC Capital Interest Coverage Historical Data
* Premium members only.
The historical data trend for HMC Capital'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:HMC vs VICI, WPC, BNL: Interest Coverage Comparison
For the REIT - Diversified subindustry, HMC Capital'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.
HMC Capital Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, HMC Capital's Interest Coverage distribution charts can be found below:
* The bar in red indicates where HMC Capital'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.
HMC Capital (ASX:HMC) has a Interest Coverage of 1.25 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on HMC Capital and its competitors. This is 51% below median its historical median of 2.54. Over the past decade, HMC Capital's Interest Coverage has ranged from 1.01 to 7.42. According to the industry distribution chart, HMC Capital ranks #253 out of 700 companies in the REITs industry, placing it in the top 36.1%.
Is HMC Capital's Interest Coverage too high?
HMC Capital's current Interest Coverage of 1.25 is 51% below median its 10-year median of 2.54. Over the past 10 years, this metric has ranged from a low of 1.01 to a high of 7.42. The REITs industry median Interest Coverage is 3.10. HMC Capital's value of 1.25 is 59.6% below this industry median. Based on the distribution chart, HMC Capital ranks #253 out of 700 companies in the REITs industry, which is above the industry midpoint. Overall, HMC Capital has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does HMC Capital's Interest Coverage compare to VICI and WPC?
According to the REITs industry distribution chart, HMC Capital ranks #253 out of 700 companies for Interest Coverage. This puts HMC Capital in the upper half of its industry. The industry median Interest Coverage is 3.10. HMC Capital's value of 1.25 is 59.6% below this benchmark. Historically, HMC Capital's own Interest Coverage has ranged from 1.01 to 7.42 over the past decade. While the company's 10-year median is 2.54 vs. the industry median of 3.10, HMC Capital 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 3.10, based on 700 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. HMC Capital's current Interest Coverage of 1.25 is 59.6% 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 HMC Capital and its competitors. For the REITs industry, the median Interest Coverage is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HMC Capital's current Interest Coverage is 1.25, which is 51% below median its own 10-year median of 2.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HMC Capital stock overvalued right now?
Based on GuruFocus' analysis, HMC Capital (ASX:HMC) is currently considered Possible Value Trap. The stock's GF Value™ is A$14.15, compared to a current price of A$2.94 — trading 79.2% below its estimated fair value. The current Interest Coverage is 1.25, which is 51% below median its 10-year median of 2.54 and 59.6% below the REITs industry median of 3.10. HMC Capital's overall GF Score™ is 62/100 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 HMC Capital (ASX:HMC), the current Interest Coverage is 1.25 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 HMC Capital (ASX:HMC) Overvalued in 2026?
Based on GuruFocus' analysis, HMC Capital stock appears to be undervalued.
The current stock price of A$2.94 is trading 79.2% below its estimated GF Value™ of A$14.15.
GuruFocus considers HMC Capital to be Possible Value Trap.
Key valuation signals for ASX:HMC:
Interest Coverage: 1.25 (51% below median its 10-year median of 2.54)
GF Value™: A$14.15 vs. price of A$2.94 (79.2% below fair value)
Industry Position: 59.6% below the REITs median (#253 of 700)
No single metric tells the full story. See the ASX:HMC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HMC Capital Ltd is a property group focused on ownership, development, and management. The company's operating segment includes Real Estate which comprises of HMC Capital managed HomeCo Daily Needs REIT, HealthCo Healthcare and Wellness REIT, HMC Wholesale Healthcare Fund and the Last Mile Logistics Fund; Private Equity which includes the HMC Capital Partners Fund I, a high conviction strategic stakes fund; and Corporate properties which includes unallocated costs and Capital Solutions activities which includes short term investments undertaken relating to non-HMC managed funds. It generates maximum revenue from the Real Estate segment. The company portfolio comprises mainly retail and services centers.
62GF Score
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