Raizen (BSP:RAIZ4) Interest Coverage: 0 (At Loss) (As of Mar. 2026)

Author: Vera Yuan Vera Yuan
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Director of Data and Quant Analytics at GuruFocus
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BSP:RAIZ4 Raizen SA BSP:RAIZ4
58 GF Score
Price R$0.29
GF Value R$2.49
Valuation Possible Value Trap
! 9 Warning Signs
View Full Analysis

What is Raizen Interest Coverage?

Raizen BSP:RAIZ4 58 Interest Coverage is 0 (At Loss) as of Mar. 2026. GuruFocus rates BSP:RAIZ4 with a GF Score™ of 58/100 and a GF Value™ of R$2.49 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 323 Utilities - Independent Power Producers companies, Raizen ranks worse than 95.36% 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 Mar. 2026 was R$-613 Mil. Raizen's Interest Expense for the three months ended in Mar. 2026 was R$318 Mil. did not have earnings to cover the interest expense. 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: 0.01   Med: 2.74   Max: 5.35
Current: 0.25


BSP:RAIZ4's Interest Coverage is ranked worse than
95.36% of 323 companies
in the Utilities - Independent Power Producers industry
Industry Median: 2.77 vs BSP:RAIZ4: 0.25

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


Raizen  (BSP:RAIZ4) 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 .


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.

Raizen Interest Coverage Chart

Raizen Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.42 2.06 2.53 1.36 0.01

Raizen 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 0.00 0.17 0.85 0.14 0.00

Raizen Interest Coverage Competitor Comparison

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.


BSP:RAIZ4
58GF Score
Raizen SA BSP:RAIZ4
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Raizen 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.

Raizen's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, Raizen's Interest Expense was R$-3,546 Mil. Its Operating Income was R$45 Mil. And its Long-Term Debt & Capital Lease Obligation was R$5,492 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*45.156/-3546.366
=0.01

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

Here, for the three months ended in Mar. 2026, Raizen's Interest Expense was R$318 Mil. Its Operating Income was R$-613 Mil. And its Long-Term Debt & Capital Lease Obligation was R$5,492 Mil.

* 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 0 (At Loss) mean?
Raizen (BSP:RAIZ4) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Raizen and its competitors. Over the past decade, Raizen's Interest Coverage has ranged from 0.01 to 5.35. According to the industry distribution chart, Raizen ranks #308 out of 323 companies in the Utilities - Independent Power Producers industry, placing it in the top 95.4%.
Is Raizen's Interest Coverage too high?
Raizen's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 5.35. Based on the distribution chart, Raizen ranks #308 out of 323 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, Raizen has a GF Score™ of 58/100 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 #308 out of 323 companies for Interest Coverage. This places Raizen in the lower half of its industry. The industry median Interest Coverage is 2.77. Historically, Raizen's own Interest Coverage has ranged from 0.01 to 5.35 over the past decade. 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 323 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. 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 (At Loss). 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$2.49, compared to a current price of R$0.29 — trading 88.4% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Raizen's overall GF Score™ is 58/100 with 9 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 (At Loss) 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 Raizen (BSP:RAIZ4) Overvalued in 2026?

Based on GuruFocus' analysis, Raizen stock appears to be undervalued. The current stock price of R$0.29 is trading 88.4% below its estimated GF Value™ of R$2.49. GuruFocus considers Raizen to be Possible Value Trap.

Key valuation signals for BSP:RAIZ4:

  • Interest Coverage: 0 (At Loss)
  • GF Value™: R$2.49 vs. price of R$0.29 (88.4% below fair value)
  • GF Score™: 58/100 with 9 warning signs

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 Business Description

Address Avenida Afonso Arinos de Melo Franco, 222, Apartment building 2, room 321, Barra da Tijuca, Rio de Janeiro, RJ, BRA
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.
58GF Score

Get the complete analysis for BSP:RAIZ4

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

R$0.29
Price
R$2.49
GF Value