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. Armac Locacao Logistica e Servicos's
Operating Income
for the
three
months ended in Mar. 2026 was R$71 Mil. Armac Locacao Logistica e Servicos's Interest Expense for the
three
months ended in Mar. 2026 was R$-128 Mil.
Armac Locacao Logistica e Servicos's interest coverage for the quarter that ended in Mar. 2026 was 0.55.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Armac Locacao Logistica e Servicos's Interest Coverage or its related term are showing as below:
BSP:ARML3'
s Interest Coverage Range Over the Past 10 Years
Min: 0.87 Med: 1.68 Max: 3.29
Current: 0.87
BSP:ARML3's Interest Coverage is ranked worse than 95.44% of 812
companies
in the Business Services industry
Industry Median: 12.98
vs BSP:ARML3: 0.87
Armac Locacao Logistica e Servicos (BSP:ARML3) 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 .
Armac Locacao Logistica e Servicos Interest Coverage Related Terms
Armac Locacao Logistica e Servicos 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.
Armac Locacao Logistica e Servicos Interest Coverage Chart
BSP:ARML3 vs URI, SUNB, AER: Interest Coverage Comparison
For the Rental & Leasing Services subindustry, Armac Locacao Logistica e Servicos'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.
Armac Locacao Logistica e Servicos Interest Coverage vs Business Services Industry
For the Business Services industry and Industrials sector, Armac Locacao Logistica e Servicos's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Armac Locacao Logistica e Servicos's Interest Coverage falls into.
Armac Locacao Logistica e Servicos 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.
Armac Locacao Logistica e Servicos (BSP:ARML3) has a Interest Coverage of 0.55 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Armac Locacao Logistica e Servicos and its competitors. This is 67% below median its historical median of 1.68. Over the past decade, Armac Locacao Logistica e Servicos' Interest Coverage has ranged from 0.87 to 3.29. According to the industry distribution chart, Armac Locacao Logistica e Servicos ranks #775 out of 812 companies in the Business Services industry, placing it in the top 95.4%.
Is Armac Locacao Logistica e Servicos' Interest Coverage too high?
Armac Locacao Logistica e Servicos' current Interest Coverage of 0.55 is 67% below median its 10-year median of 1.68. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 3.29. The Business Services industry median Interest Coverage is 12.98. Armac Locacao Logistica e Servicos' value of 0.55 is 95.8% below this industry median. Based on the distribution chart, Armac Locacao Logistica e Servicos ranks #775 out of 812 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Armac Locacao Logistica e Servicos has a GF Score™ of 81/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Armac Locacao Logistica e Servicos' Interest Coverage compare to URI and SUNB?
According to the Business Services industry distribution chart, Armac Locacao Logistica e Servicos ranks #775 out of 812 companies for Interest Coverage. This places Armac Locacao Logistica e Servicos in the lower half of its industry. The industry median Interest Coverage is 12.98. Armac Locacao Logistica e Servicos' value of 0.55 is 95.8% below this benchmark. Historically, Armac Locacao Logistica e Servicos' own Interest Coverage has ranged from 0.87 to 3.29 over the past decade. While the company's 10-year median is 1.68 vs. the industry median of 12.98, Armac Locacao Logistica e Servicos 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 Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 812 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. Armac Locacao Logistica e Servicos's current Interest Coverage of 0.55 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 Armac Locacao Logistica e Servicos and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Armac Locacao Logistica e Servicos's current Interest Coverage is 0.55, which is 67% below median its own 10-year median of 1.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Armac Locacao Logistica e Servicos stock overvalued right now?
Based on GuruFocus' analysis, Armac Locacao Logistica e Servicos (BSP:ARML3) is currently considered Possible Value Trap. The stock's GF Value™ is R$9.18, compared to a current price of R$3.13 — trading 65.9% below its estimated fair value. The current Interest Coverage is 0.55, which is 67% below median its 10-year median of 1.68 and 95.8% below the Business Services industry median of 12.98. Armac Locacao Logistica e Servicos' 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 Armac Locacao Logistica e Servicos (BSP:ARML3), the current Interest Coverage is 0.55 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 Armac Locacao Logistica e Servicos (BSP:ARML3) Overvalued in 2026?
Based on GuruFocus' analysis, Armac Locacao Logistica e Servicos stock appears to be undervalued.
The current stock price of R$3.13 is trading 65.9% below its estimated GF Value™ of R$9.18.
GuruFocus considers Armac Locacao Logistica e Servicos to be Possible Value Trap.
Key valuation signals for BSP:ARML3:
Interest Coverage: 0.55 (67% below median its 10-year median of 1.68)
GF Value™: R$9.18 vs. price of R$3.13 (65.9% below fair value)
Industry Position: 95.8% below the Business Services median (#775 of 812)
No single metric tells the full story. See the BSP:ARML3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Armac Locacao Logistica e Servicos Business Description
Armac Locacao Logistica e Servicos SA is engaged in offering machinery and equipment on a rental basis. Some of its equipment includes pavers, telescopic handlers, Compaction rollers, Motor graders, crawler tractors, excavators, and Loaders among others.
81GF Score
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