SGHASX:SGH +2.24%81 Interest Coverage is 5.60 as of Dec. 2025, which is 38% above its 10-year median of 4.05. GuruFocus rates ASX:SGH with a GF Score™ of 81/100 and a GF Value™ of A$38.05 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 426 Conglomerates companies, SGH ranks worse than 53.99% 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. SGH's
Operating Income
for the
six
months ended in Dec. 2025 was A$716 Mil. SGH's Interest Expense for the
six
months ended in Dec. 2025 was A$-128 Mil.
SGH's interest coverage for the quarter that ended in Dec. 2025 was 5.60.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for SGH's Interest Coverage or its related term are showing as below:
ASX:SGH'
s Interest Coverage Range Over the Past 10 Years
Min: 1.34 Med: 4.05 Max: 5.45
Current: 4.87
ASX:SGH's Interest Coverage is ranked worse than 53.99% of 426
companies
in the Conglomerates industry
Industry Median: 5.31
vs ASX:SGH: 4.87
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 .
SGH Interest Coverage Related Terms
SGH Interest Coverage Historical Data
* Premium members only.
The historical data trend for SGH'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 Conglomerates subindustry, SGH'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.
SGH Interest Coverage vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, SGH's Interest Coverage distribution charts can be found below:
* The bar in red indicates where SGH'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.
SGH (ASX:SGH) has a Interest Coverage of 5.60 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on SGH and its competitors. This is 38% above median its historical median of 4.05. Over the past decade, SGH's Interest Coverage has ranged from 1.34 to 5.45. According to the industry distribution chart, SGH ranks #230 out of 426 companies in the Conglomerates industry, placing it in the top 54%.
Is SGH's Interest Coverage too high?
SGH's current Interest Coverage of 5.60 is 38% above median its 10-year median of 4.05. Over the past 10 years, this metric has ranged from a low of 1.34 to a high of 5.45. The Conglomerates industry median Interest Coverage is 5.31. SGH's value of 5.60 is 5.5% above this industry median. Based on the distribution chart, SGH ranks #230 out of 426 companies in the Conglomerates industry, which is below the industry midpoint. Overall, SGH has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SGH's Interest Coverage compare to HON and MMM?
According to the Conglomerates industry distribution chart, SGH ranks #230 out of 426 companies for Interest Coverage. This places SGH in the lower half of its industry. The industry median Interest Coverage is 5.31. SGH's value of 5.60 is 5.5% above this benchmark. Historically, SGH's own Interest Coverage has ranged from 1.34 to 5.45 over the past decade. While the company's 10-year median is 4.05 vs. the industry median of 5.31, SGH has consistently been above 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 Conglomerates company?
The median Interest Coverage among Conglomerates companies is 5.31, based on 426 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. SGH's current Interest Coverage of 5.60 is 5.5% above 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 SGH and its competitors. For the Conglomerates industry, the median Interest Coverage is 5.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SGH's current Interest Coverage is 5.60, which is 38% above median its own 10-year median of 4.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SGH stock overvalued right now?
Based on GuruFocus' analysis, SGH (ASX:SGH) is currently considered Modestly Overvalued. The stock's GF Value™ is A$38.05, compared to a current price of A$46.49 — trading 22.2% above its estimated fair value. The current Interest Coverage is 5.60, which is 38% above median its 10-year median of 4.05 and 5.5% above the Conglomerates industry median of 5.31. SGH's overall GF Score™ is 81/100 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 SGH (ASX:SGH), the current Interest Coverage is 5.60 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 SGH (ASX:SGH) Overvalued in 2026?
Based on GuruFocus' analysis, SGH stock appears to be overvalued.
The current stock price of A$46.49 is trading 22.2% above its estimated GF Value™ of A$38.05.
GuruFocus considers SGH to be Modestly Overvalued.
Key valuation signals for ASX:SGH:
Interest Coverage: 5.60 (38% above median its 10-year median of 4.05)
GF Value™: A$38.05 vs. price of A$46.49 (22.2% above fair value)
Industry Position: 5.5% above the Conglomerates median (#230 of 426)
No single metric tells the full story. See the ASX:SGH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SGH is a diversified industrial and investment group, with interests in heavy-equipment sales, service and equipment hire, media and broadcasting, oil and gas, and developable property. It changed its name from Seven Group in 2024, the rebrand to reflect an evolution toward diversified industrial-focused activities, away from media. SGH is domiciled in Australia where it predominantly operates.
81GF Score
Get the complete analysis for ASX:SGH
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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