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. Ambipar Participacoes e Empreendimentos's
Operating Income
for the
three
months ended in Jun. 2025 was R$333 Mil. Ambipar Participacoes e Empreendimentos's Interest Expense for the
three
months ended in Jun. 2025 was R$-428 Mil.
Ambipar Participacoes e Empreendimentos's interest coverage for the quarter that ended in Jun. 2025 was 0.78.
The higher the ratio, the stronger the company's financial strength is.
Ambipar Participacoes e Empreendimentos (BSP:AMBP3) 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 .
Ambipar Participacoes e Empreendimentos Interest Coverage Related Terms
Ambipar Participacoes e Empreendimentos Interest Coverage Historical Data
* 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.
Ambipar Participacoes e Empreendimentos Interest Coverage Chart
Ambipar Participacoes e Empreendimentos Annual Data
BSP:AMBP3 vs WM, RSG, WCN: Interest Coverage Comparison
For the Waste Management subindustry, Ambipar Participacoes e Empreendimentos'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.
Ambipar Participacoes e Empreendimentos Interest Coverage vs Waste Management Industry
For the Waste Management industry and Industrials sector, Ambipar Participacoes e Empreendimentos's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Ambipar Participacoes e Empreendimentos's Interest Coverage falls into.
Ambipar Participacoes e Empreendimentos 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:
* 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.
Ambipar Participacoes e Empreendimentos (BSP:AMBP3) has a Interest Coverage of 0.78 as of Jun. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ambipar Participacoes e Empreendimentos and its competitors. This is 26% below median its historical median of 1.06. Over the past decade, Ambipar Participacoes e Empreendimentos' Interest Coverage has ranged from 0.64 to 2.38. According to the industry distribution chart, Ambipar Participacoes e Empreendimentos ranks #152 out of 161 companies in the Waste Management industry, placing it in the top 94.4%.
Is Ambipar Participacoes e Empreendimentos' Interest Coverage too high?
Ambipar Participacoes e Empreendimentos' current Interest Coverage of 0.78 is 26% below median its 10-year median of 1.06. Over the past 10 years, this metric has ranged from a low of 0.64 to a high of 2.38. The Waste Management industry median Interest Coverage is 5.72. Ambipar Participacoes e Empreendimentos' value of 0.78 is 86.4% below this industry median. Based on the distribution chart, Ambipar Participacoes e Empreendimentos ranks #152 out of 161 companies in the Waste Management industry, which is in the bottom quartile relative to peers. Overall, Ambipar Participacoes e Empreendimentos has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ambipar Participacoes e Empreendimentos' Interest Coverage compare to WM and RSG?
According to the Waste Management industry distribution chart, Ambipar Participacoes e Empreendimentos ranks #152 out of 161 companies for Interest Coverage. This places Ambipar Participacoes e Empreendimentos in the lower half of its industry. The industry median Interest Coverage is 5.72. Ambipar Participacoes e Empreendimentos' value of 0.78 is 86.4% below this benchmark. Historically, Ambipar Participacoes e Empreendimentos' own Interest Coverage has ranged from 0.64 to 2.38 over the past decade. While the company's 10-year median is 1.06 vs. the industry median of 5.72, Ambipar Participacoes e Empreendimentos 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 Waste Management company?
The median Interest Coverage among Waste Management companies is 5.72, based on 161 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. Ambipar Participacoes e Empreendimentos's current Interest Coverage of 0.78 is 86.4% 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 Ambipar Participacoes e Empreendimentos and its competitors. For the Waste Management industry, the median Interest Coverage is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambipar Participacoes e Empreendimentos's current Interest Coverage is 0.78, which is 26% below median its own 10-year median of 1.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambipar Participacoes e Empreendimentos stock overvalued right now?
Based on GuruFocus' analysis, Ambipar Participacoes e Empreendimentos (BSP:AMBP3) is currently considered Possible Value Trap. The stock's GF Value™ is R$17.59, compared to a current price of R$0.18 — trading 99% below its estimated fair value. The current Interest Coverage is 0.78, which is 26% below median its 10-year median of 1.06 and 86.4% below the Waste Management industry median of 5.72. Ambipar Participacoes e Empreendimentos' overall GF Score™ is 74/100 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 Ambipar Participacoes e Empreendimentos (BSP:AMBP3), the current Interest Coverage is 0.78 as of Jun. 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 Ambipar Participacoes e Empreendimentos (BSP:AMBP3) Overvalued in 2026?
Based on GuruFocus' analysis, Ambipar Participacoes e Empreendimentos stock appears to be undervalued.
The current stock price of R$0.18 is trading 99% below its estimated GF Value™ of R$17.59.
GuruFocus considers Ambipar Participacoes e Empreendimentos to be Possible Value Trap.
Key valuation signals for BSP:AMBP3:
Interest Coverage: 0.78 (26% below median its 10-year median of 1.06)
GF Value™: R$17.59 vs. price of R$0.18 (99% below fair value)
Industry Position: 86.4% below the Waste Management median (#152 of 161)
No single metric tells the full story. See the BSP:AMBP3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ambipar Participacoes e Empreendimentos Business Description
Ambipar Participacoes e Empreendimentos SA is engaged in providing environmental services to several private clients in Latin America. Through its Environment segment, the company provides complete solutions in waste management and recovery, with the support of a center for research, development, and innovation. Its response segment provides prevention, training, and emergency assistance to accidents with chemicals and pollutants and firefighting.
74GF Score
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