Motorcycle HoldingsASX:MTO -0.81%85 Interest Coverage is 2.34 as of Dec. 2025, which is 48% below its 10-year median of 4.52. GuruFocus rates ASX:MTO with a GF Score™ of 85/100 and a GF Value™ of A$2.64 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,066 Vehicles & Parts companies, Motorcycle Holdings ranks worse than 67.92% 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. Motorcycle Holdings's
Operating Income
for the
six
months ended in Dec. 2025 was A$10.2 Mil. Motorcycle Holdings's Interest Expense for the
six
months ended in Dec. 2025 was A$-4.4 Mil.
Motorcycle Holdings's interest coverage for the quarter that ended in Dec. 2025 was 2.34.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Motorcycle Holdings's Interest Coverage or its related term are showing as below:
ASX:MTO'
s Interest Coverage Range Over the Past 10 Years
Min: 1.6 Med: 4.52 Max: 86.21
Current: 3.72
ASX:MTO's Interest Coverage is ranked worse than 67.92% of 1066
companies
in the Vehicles & Parts industry
Industry Median: 8.295
vs ASX:MTO: 3.72
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 .
Motorcycle Holdings Interest Coverage Related Terms
Motorcycle Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for Motorcycle Holdings'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:MTO vs CVNA, PAG, ALTB: Interest Coverage Comparison
For the Auto & Truck Dealerships subindustry, Motorcycle Holdings'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.
Motorcycle Holdings Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Motorcycle Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Motorcycle Holdings'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.
Motorcycle Holdings (ASX:MTO) has a Interest Coverage of 2.34 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Motorcycle Holdings and its competitors. This is 48% below median its historical median of 4.52. Over the past decade, Motorcycle Holdings' Interest Coverage has ranged from 1.60 to 86.21. According to the industry distribution chart, Motorcycle Holdings ranks #724 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 67.9%.
Is Motorcycle Holdings' Interest Coverage too high?
Motorcycle Holdings' current Interest Coverage of 2.34 is 48% below median its 10-year median of 4.52. Over the past 10 years, this metric has ranged from a low of 1.60 to a high of 86.21. The Vehicles & Parts industry median Interest Coverage is 8.30. Motorcycle Holdings' value of 2.34 is 71.8% below this industry median. Based on the distribution chart, Motorcycle Holdings ranks #724 out of 1066 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Motorcycle Holdings has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Motorcycle Holdings' Interest Coverage compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Motorcycle Holdings ranks #724 out of 1066 companies for Interest Coverage. This places Motorcycle Holdings in the lower half of its industry. The industry median Interest Coverage is 8.30. Motorcycle Holdings' value of 2.34 is 71.8% below this benchmark. Historically, Motorcycle Holdings' own Interest Coverage has ranged from 1.60 to 86.21 over the past decade. While the company's 10-year median is 4.52 vs. the industry median of 8.30, Motorcycle Holdings 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.30, based on 1,066 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. Motorcycle Holdings's current Interest Coverage of 2.34 is 71.8% 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 Motorcycle Holdings and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motorcycle Holdings's current Interest Coverage is 2.34, which is 48% below median its own 10-year median of 4.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motorcycle Holdings stock overvalued right now?
Based on GuruFocus' analysis, Motorcycle Holdings (ASX:MTO) is currently considered Fairly Valued. The stock's GF Value™ is A$2.64, compared to a current price of A$2.45 — trading 7.2% below its estimated fair value. The current Interest Coverage is 2.34, which is 48% below median its 10-year median of 4.52 and 71.8% below the Vehicles & Parts industry median of 8.30. Motorcycle Holdings' overall GF Score™ is 85/100 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 Motorcycle Holdings (ASX:MTO), the current Interest Coverage is 2.34 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 Motorcycle Holdings (ASX:MTO) Overvalued in 2026?
Based on GuruFocus' analysis, Motorcycle Holdings stock appears to be undervalued.
The current stock price of A$2.45 is trading 7.2% below its estimated GF Value™ of A$2.64.
GuruFocus considers Motorcycle Holdings to be Fairly Valued.
Key valuation signals for ASX:MTO:
Interest Coverage: 2.34 (48% below median its 10-year median of 4.52)
GF Value™: A$2.64 vs. price of A$2.45 (7.2% below fair value)
Industry Position: 71.8% below the Vehicles & Parts median (#724 of 1066)
No single metric tells the full story. See the ASX:MTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Motorcycle Holdings Ltd is a motorcycle dealer in Australia. It has two reporting segments. First, Motorcycle Retailing, which offers a range of motorcycle products and services to the general public in Australia, including the sale of new and used motorcycles, parts, servicing, accessories, and MPPs. The segment also facilitates insurance and financing for motorcycle purchases through third-party sources. Second, the Motorcycle and Accessories Wholesaling segment, which imports and distributes a range of motorcycles, ATVs, scooters, and motorcycle parts and accessories to wholesale customers in Australia and New Zealand, including the Group's own retail outlets.
85GF Score
Get the complete analysis for ASX:MTO
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:MTO has been successfully added to your 
