SolvarASX:SVR -0.33%80 Interest Coverage is 2.03 as of Dec. 2025, which is 46% below its 10-year median of 3.73. GuruFocus rates ASX:SVR with a GF Score™ of 80/100 and a GF Value™ of A$1.39 (Fairly Valued). The stock has 8 warning signs investors should review. Among 163 Credit Services companies, Solvar ranks worse than 88.34% 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. Solvar's
Operating Income
for the
six
months ended in Dec. 2025 was A$48.7 Mil. Solvar's Interest Expense for the
six
months ended in Dec. 2025 was A$-24.0 Mil.
Solvar's interest coverage for the quarter that ended in Dec. 2025 was 2.03.
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. Solvar Ltd interest coverage is 1.87, which is low.
The historical rank and industry rank for Solvar's Interest Coverage or its related term are showing as below:
ASX:SVR'
s Interest Coverage Range Over the Past 10 Years
Min: 1.67 Med: 3.73 Max: 7.37
Current: 1.87
ASX:SVR's Interest Coverage is ranked worse than 88.34% of 163
companies
in the Credit Services industry
Industry Median: 47.86
vs ASX:SVR: 1.87
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 .
Solvar Interest Coverage Related Terms
Solvar Interest Coverage Historical Data
* Premium members only.
The historical data trend for Solvar'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:SVR vs V, MA, AXP: Interest Coverage Comparison
For the Credit Services subindustry, Solvar'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.
Solvar Interest Coverage vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Solvar's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Solvar'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.
Solvar (ASX:SVR) has a Interest Coverage of 2.03 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Solvar and its competitors. This is 46% below median its historical median of 3.73. Over the past decade, Solvar's Interest Coverage has ranged from 1.67 to 7.37. According to the industry distribution chart, Solvar ranks #144 out of 163 companies in the Credit Services industry, placing it in the top 88.3%.
Is Solvar's Interest Coverage too high?
Solvar's current Interest Coverage of 2.03 is 46% below median its 10-year median of 3.73. Over the past 10 years, this metric has ranged from a low of 1.67 to a high of 7.37. The Credit Services industry median Interest Coverage is 47.86. Solvar's value of 2.03 is 95.8% below this industry median. Based on the distribution chart, Solvar ranks #144 out of 163 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Solvar has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Solvar's Interest Coverage compare to V and MA?
According to the Credit Services industry distribution chart, Solvar ranks #144 out of 163 companies for Interest Coverage. This places Solvar in the lower half of its industry. The industry median Interest Coverage is 47.86. Solvar's value of 2.03 is 95.8% below this benchmark. Historically, Solvar's own Interest Coverage has ranged from 1.67 to 7.37 over the past decade. While the company's 10-year median is 3.73 vs. the industry median of 47.86, Solvar 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 Credit Services company?
The median Interest Coverage among Credit Services companies is 47.86, based on 163 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. Solvar's current Interest Coverage of 2.03 is 95.8% 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 Solvar and its competitors. For the Credit Services industry, the median Interest Coverage is 47.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solvar's current Interest Coverage is 2.03, which is 46% below median its own 10-year median of 3.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solvar stock overvalued right now?
Based on GuruFocus' analysis, Solvar (ASX:SVR) is currently considered Fairly Valued. The stock's GF Value™ is A$1.39, compared to a current price of A$1.50 — trading 7.9% above its estimated fair value. The current Interest Coverage is 2.03, which is 46% below median its 10-year median of 3.73 and 95.8% below the Credit Services industry median of 47.86. Solvar's overall GF Score™ is 80/100 with 8 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 Solvar (ASX:SVR), the current Interest Coverage is 2.03 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 Solvar (ASX:SVR) Overvalued in 2026?
Based on GuruFocus' analysis, Solvar stock appears to be overvalued.
The current stock price of A$1.50 is trading 7.9% above its estimated GF Value™ of A$1.39.
GuruFocus considers Solvar to be Fairly Valued.
Key valuation signals for ASX:SVR:
Interest Coverage: 2.03 (46% below median its 10-year median of 3.73)
GF Value™: A$1.39 vs. price of A$1.50 (7.9% above fair value)
Industry Position: 95.8% below the Credit Services median (#144 of 163)
No single metric tells the full story. See the ASX:SVR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solvar Ltd is a financial services company specializing in providing finance and other related services to assist consumers with the purchase of a new or used vehicle, as well as offering personal loans to consumers. The group also provides strategic corporate customers with fleet funding facilities. Solvar's products and services can be accessed through brokers, dealers, and directly through its websites and referral partners. It operates through three core brands: Money3 and Automotive Financial Services in Australia and Go Car Finance in New Zealand. The group's operating segments are Australia and New Zealand. It generates maximum revenue from the Australia segment, which provides lending facilities in Australia, generally based on the provision of an underlying asset as security.
80GF Score
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