AXFOF (Axfood AB) Interest Coverage: 5.39 (As of Mar. 2026) — 74% Below Median


AXFOF Axfood AB AXFOF
90 GF Score
Price $28.00
GF Value $22.40
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Axfood AB Interest Coverage?

Axfood AB AXFOF 90 Interest Coverage is 5.39 as of Mar. 2026, which is 74% below its 10-year median of 20.97. GuruFocus rates AXFOF with a GF Score™ of 90/100 and a GF Value™ of $22.40 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 254 Retail - Defensive companies, Axfood AB ranks worse than 59.84% 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. Axfood AB's Operating Income for the three months ended in Mar. 2026 was $87 Mil. Axfood AB's Interest Expense for the three months ended in Mar. 2026 was $-16 Mil. Axfood AB's interest coverage for the quarter that ended in Mar. 2026 was 5.39. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Axfood AB's Interest Coverage or its related term are showing as below:

AXFOF' s Interest Coverage Range Over the Past 10 Years
Min: 6.36   Med: 20.97   Max: 171.73
Current: 6.36


AXFOF's Interest Coverage is ranked worse than
59.84% of 254 companies
in the Retail - Defensive industry
Industry Median: 9.065 vs AXFOF: 6.36

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


Axfood AB  (OTCPK:AXFOF) 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 .


Axfood AB Interest Coverage Related Terms


Axfood AB Interest Coverage Historical Data

* Premium members only.

The historical data trend for Axfood AB'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.

Axfood AB Interest Coverage Chart

Axfood AB Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.36 18.09 9.50 8.01 6.80

Axfood AB Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.95 6.20 7.46 6.46 5.39

AXFOF vs KR, SFM, ACI: Interest Coverage Comparison

For the Grocery Stores subindustry, Axfood AB'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.


Axfood AB Interest Coverage vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Axfood AB's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Axfood AB's Interest Coverage falls into.


AXFOF
90GF Score
Axfood AB AXFOF
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Axfood AB 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.

Axfood AB's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Axfood AB's Interest Expense was $-57 Mil. Its Operating Income was $390 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,418 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*389.52/-57.244
=6.80

Axfood AB's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Axfood AB's Interest Expense was $-16 Mil. Its Operating Income was $87 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,335 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*86.829/-16.099
=5.39

* 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 5.39 mean?
Axfood AB (AXFOF) has a Interest Coverage of 5.39 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Axfood AB and its competitors. This is 74% below median its historical median of 20.97. Over the past decade, Axfood AB's Interest Coverage has ranged from 6.36 to 171.73. According to the industry distribution chart, Axfood AB ranks #152 out of 254 companies in the Retail - Defensive industry, placing it in the top 59.8%.
Is Axfood AB's Interest Coverage too high?
Axfood AB's current Interest Coverage of 5.39 is 74% below median its 10-year median of 20.97. Over the past 10 years, this metric has ranged from a low of 6.36 to a high of 171.73. The Retail - Defensive industry median Interest Coverage is 9.07. Axfood AB's value of 5.39 is 40.5% below this industry median. Based on the distribution chart, Axfood AB ranks #152 out of 254 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Axfood AB has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Axfood AB's Interest Coverage compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Axfood AB ranks #152 out of 254 companies for Interest Coverage. This places Axfood AB in the lower half of its industry. The industry median Interest Coverage is 9.07. Axfood AB's value of 5.39 is 40.5% below this benchmark. Historically, Axfood AB's own Interest Coverage has ranged from 6.36 to 171.73 over the past decade. While the company's 10-year median is 20.97 vs. the industry median of 9.07, Axfood AB 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 Retail - Defensive company?
The median Interest Coverage among Retail - Defensive companies is 9.07, based on 254 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. Axfood AB's current Interest Coverage of 5.39 is 40.5% 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 Axfood AB and its competitors. For the Retail - Defensive industry, the median Interest Coverage is 9.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axfood AB's current Interest Coverage is 5.39, which is 74% below median its own 10-year median of 20.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axfood AB stock overvalued right now?
Based on GuruFocus' analysis, Axfood AB (AXFOF) is currently considered Modestly Overvalued. The stock's GF Value™ is $22.40, compared to a current price of $28.00 — trading 25% above its estimated fair value. The current Interest Coverage is 5.39, which is 74% below median its 10-year median of 20.97 and 40.5% below the Retail - Defensive industry median of 9.07. Axfood AB's overall GF Score™ is 90/100 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 Axfood AB (AXFOF), the current Interest Coverage is 5.39 as of Mar. 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 Axfood AB (AXFOF) Overvalued in 2026?

Based on GuruFocus' analysis, Axfood AB stock appears to be overvalued. The current stock price of $28.00 is trading 25% above its estimated GF Value™ of $22.40. GuruFocus considers Axfood AB to be Modestly Overvalued.

Key valuation signals for AXFOF:

  • Interest Coverage: 5.39 (74% below median its 10-year median of 20.97)
  • GF Value™: $22.40 vs. price of $28.00 (25% above fair value)
  • GF Score™: 90/100 with 5 warning signs
  • Industry Position: 40.5% below the Retail - Defensive median (#152 of 254)

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


Axfood AB Business Description

Other Exchanges AXFO:SwedenAXFOs:UK0R6R:UK
Address Solnavagen 4, Stockholm, SWE, 113 65
Axfood AB operates food retail and wholesale businesses in Sweden. The company operates various food retail grocery chains, discount stores, hypermarkets, restaurants, cafes, and pharmacies through different brands. The company's operating segments include Willys, Hemkop, Dagab, City Gross, and Snabbgross. A majority of its revenue is generated from the Willys segment, which is a discount grocery chain, offering various products in both group-owned stores and online. This segment also includes the partly owned cross-border grocery chain Eurocash.
90GF Score

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

$28.00
Price
$22.40
GF Value