RaizenBSP:RAIZ4 -5.00%65 Interest Coverage is 0.14 as of Dec. 2025, which is 96% below its 10-year median of 3.19. GuruFocus rates BSP:RAIZ4 with a GF Score™ of 65/100 and a GF Value™ of R$2.85 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 321 Utilities - Independent Power Producers companies, Raizen ranks worse than 94.08% 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. Raizen's
Operating Income
for the
three
months ended in Dec. 2025 was R$188 Mil. Raizen's Interest Expense for the
three
months ended in Dec. 2025 was R$-1,308 Mil.
Raizen's interest coverage for the quarter that ended in Dec. 2025 was 0.14.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Raizen's Interest Coverage or its related term are showing as below:
BSP:RAIZ4'
s Interest Coverage Range Over the Past 10 Years
Min: 0.29 Med: 3.19 Max: 5.35
Current: 0.29
BSP:RAIZ4's Interest Coverage is ranked worse than 94.08% of 321
companies
in the Utilities - Independent Power Producers industry
Industry Median: 2.77
vs BSP:RAIZ4: 0.29
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 .
Raizen Interest Coverage Related Terms
Raizen Interest Coverage Historical Data
* Premium members only.
The historical data trend for Raizen'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 Utilities - Renewable subindustry, Raizen'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.
Raizen Interest Coverage vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Raizen's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Raizen'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.
Raizen (BSP:RAIZ4) has a Interest Coverage of 0.14 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Raizen and its competitors. This is 96% below median its historical median of 3.19. Over the past decade, Raizen's Interest Coverage has ranged from 0.29 to 5.35. According to the industry distribution chart, Raizen ranks #302 out of 321 companies in the Utilities - Independent Power Producers industry, placing it in the top 94.1%.
Is Raizen's Interest Coverage too high?
Raizen's current Interest Coverage of 0.14 is 96% below median its 10-year median of 3.19. Over the past 10 years, this metric has ranged from a low of 0.29 to a high of 5.35. The Utilities - Independent Power Producers industry median Interest Coverage is 2.77. Raizen's value of 0.14 is 94.9% below this industry median. Based on the distribution chart, Raizen ranks #302 out of 321 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, Raizen has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Raizen's Interest Coverage compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Raizen ranks #302 out of 321 companies for Interest Coverage. This places Raizen in the lower half of its industry. The industry median Interest Coverage is 2.77. Raizen's value of 0.14 is 94.9% below this benchmark. Historically, Raizen's own Interest Coverage has ranged from 0.29 to 5.35 over the past decade. While the company's 10-year median is 3.19 vs. the industry median of 2.77, Raizen 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 an Utilities - Independent Power Producers company?
The median Interest Coverage among Utilities - Independent Power Producers companies is 2.77, based on 321 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. Raizen's current Interest Coverage of 0.14 is 94.9% 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 Raizen and its competitors. For the Utilities - Independent Power Producers industry, the median Interest Coverage is 2.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Raizen's current Interest Coverage is 0.14, which is 96% below median its own 10-year median of 3.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Raizen stock overvalued right now?
Based on GuruFocus' analysis, Raizen (BSP:RAIZ4) is currently considered Possible Value Trap. The stock's GF Value™ is R$2.85, compared to a current price of R$0.38 — trading 86.7% below its estimated fair value. The current Interest Coverage is 0.14, which is 96% below median its 10-year median of 3.19 and 94.9% below the Utilities - Independent Power Producers industry median of 2.77. Raizen's overall GF Score™ is 65/100 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 Raizen (BSP:RAIZ4), the current Interest Coverage is 0.14 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 Raizen (BSP:RAIZ4) Overvalued in 2026?
Based on GuruFocus' analysis, Raizen stock appears to be undervalued.
The current stock price of R$0.38 is trading 86.7% below its estimated GF Value™ of R$2.85.
GuruFocus considers Raizen to be Possible Value Trap.
Key valuation signals for BSP:RAIZ4:
Interest Coverage: 0.14 (96% below median its 10-year median of 3.19)
GF Value™: R$2.85 vs. price of R$0.38 (86.7% below fair value)
Industry Position: 94.9% below the Utilities - Independent Power Producers median (#302 of 321)
No single metric tells the full story. See the BSP:RAIZ4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Raizen SA is an integrated energy company. Its operating model involves the production and sale of renewable energy and sugar from sugarcane to the delivery of this energy to different parts of the world. The Company's main activities are the distribution and sale of fossil and renewable fuels, the production and sale of automotive and industrial lubricants, oil refining, and operations related to convenience stores. The company operates in three reportable segments Mobility, Sugar and Renewables. The Marketing and Services segment refers to the trading and sale activities of fossil and renewable fuels and lubricants, through a franchised network of service stations under the Shell brand in all the national territory and Latin America, operating in Argentina and Paraguay.
65GF Score
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