Irani Papel E Embalagem (BSP:RANI3) Interest Coverage: 0.97 (As of Mar. 2026) — 48% Below Median


BSP:RANI3 Irani Papel E Embalagem SA BSP:RANI3
77 GF Score
Price R$7.80
GF Value R$9.20
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Irani Papel E Embalagem Interest Coverage?

Irani Papel E Embalagem BSP:RANI3 +0.39% 77 Interest Coverage is 0.97 as of Mar. 2026, which is 48% below its 10-year median of 1.85. GuruFocus rates BSP:RANI3 with a GF Score™ of 77/100 and a GF Value™ of R$9.20 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 314 Packaging & Containers companies, Irani Papel E Embalagem ranks worse than 83.12% 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. Irani Papel E Embalagem's Operating Income for the three months ended in Mar. 2026 was R$62 Mil. Irani Papel E Embalagem's Interest Expense for the three months ended in Mar. 2026 was R$-64 Mil. Irani Papel E Embalagem's interest coverage for the quarter that ended in Mar. 2026 was 0.97. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Irani Papel E Embalagem's Interest Coverage or its related term are showing as below:

BSP:RANI3' s Interest Coverage Range Over the Past 10 Years
Min: 0.16   Med: 1.85   Max: 6.78
Current: 1.57


BSP:RANI3's Interest Coverage is ranked worse than
83.12% of 314 companies
in the Packaging & Containers industry
Industry Median: 6.125 vs BSP:RANI3: 1.57

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


Irani Papel E Embalagem  (BSP:RANI3) 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 .


Irani Papel E Embalagem Interest Coverage Related Terms


Irani Papel E Embalagem Interest Coverage Historical Data

* Premium members only.

The historical data trend for Irani Papel E Embalagem'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.

Irani Papel E Embalagem Interest Coverage Chart

Irani Papel E Embalagem 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 6.78 4.37 2.60 1.85 1.82

Irani Papel E Embalagem 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 2.07 2.56 1.50 1.19 0.97

BSP:RANI3 vs SW, PKG, AMCR: Interest Coverage Comparison

For the Packaging & Containers subindustry, Irani Papel E Embalagem'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.


Irani Papel E Embalagem Interest Coverage vs Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Irani Papel E Embalagem's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Irani Papel E Embalagem's Interest Coverage falls into.


BSP:RANI3
77GF Score
Irani Papel E Embalagem SA BSP:RANI3
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Irani Papel E Embalagem 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.

Irani Papel E Embalagem'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, Irani Papel E Embalagem's Interest Expense was R$-245 Mil. Its Operating Income was R$446 Mil. And its Long-Term Debt & Capital Lease Obligation was R$1,723 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*445.889/-245.446
=1.82

Irani Papel E Embalagem's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Irani Papel E Embalagem's Interest Expense was R$-64 Mil. Its Operating Income was R$62 Mil. And its Long-Term Debt & Capital Lease Obligation was R$1,518 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*62.423/-64.369
=0.97

* 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 0.97 mean?
Irani Papel E Embalagem (BSP:RANI3) has a Interest Coverage of 0.97 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Irani Papel E Embalagem and its competitors. This is 48% below median its historical median of 1.85. Over the past decade, Irani Papel E Embalagem's Interest Coverage has ranged from 0.16 to 6.78. According to the industry distribution chart, Irani Papel E Embalagem ranks #261 out of 314 companies in the Packaging & Containers industry, placing it in the top 83.1%.
Is Irani Papel E Embalagem's Interest Coverage too high?
Irani Papel E Embalagem's current Interest Coverage of 0.97 is 48% below median its 10-year median of 1.85. Over the past 10 years, this metric has ranged from a low of 0.16 to a high of 6.78. The Packaging & Containers industry median Interest Coverage is 6.13. Irani Papel E Embalagem's value of 0.97 is 84.2% below this industry median. Based on the distribution chart, Irani Papel E Embalagem ranks #261 out of 314 companies in the Packaging & Containers industry, which is in the bottom quartile relative to peers. Overall, Irani Papel E Embalagem has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Irani Papel E Embalagem's Interest Coverage compare to SW and PKG?
According to the Packaging & Containers industry distribution chart, Irani Papel E Embalagem ranks #261 out of 314 companies for Interest Coverage. This places Irani Papel E Embalagem in the lower half of its industry. The industry median Interest Coverage is 6.13. Irani Papel E Embalagem's value of 0.97 is 84.2% below this benchmark. Historically, Irani Papel E Embalagem's own Interest Coverage has ranged from 0.16 to 6.78 over the past decade. While the company's 10-year median is 1.85 vs. the industry median of 6.13, Irani Papel E Embalagem 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 Packaging & Containers company?
The median Interest Coverage among Packaging & Containers companies is 6.13, based on 314 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. Irani Papel E Embalagem's current Interest Coverage of 0.97 is 84.2% 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 Irani Papel E Embalagem and its competitors. For the Packaging & Containers industry, the median Interest Coverage is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Irani Papel E Embalagem's current Interest Coverage is 0.97, which is 48% below median its own 10-year median of 1.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Irani Papel E Embalagem stock overvalued right now?
Based on GuruFocus' analysis, Irani Papel E Embalagem (BSP:RANI3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$9.20, compared to a current price of R$7.80 — trading 15.2% below its estimated fair value. The current Interest Coverage is 0.97, which is 48% below median its 10-year median of 1.85 and 84.2% below the Packaging & Containers industry median of 6.13. Irani Papel E Embalagem's overall GF Score™ is 77/100 with 2 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 Irani Papel E Embalagem (BSP:RANI3), the current Interest Coverage is 0.97 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 Irani Papel E Embalagem (BSP:RANI3) Overvalued in 2026?

Based on GuruFocus' analysis, Irani Papel E Embalagem stock appears to be undervalued. The current stock price of R$7.80 is trading 15.2% below its estimated GF Value™ of R$9.20. GuruFocus considers Irani Papel E Embalagem to be Modestly Undervalued.

Key valuation signals for BSP:RANI3:

  • Interest Coverage: 0.97 (48% below median its 10-year median of 1.85)
  • GF Value™: R$9.20 vs. price of R$7.80 (15.2% below fair value)
  • GF Score™: 77/100 with 2 warning signs
  • Industry Position: 84.2% below the Packaging & Containers median (#261 of 314)

No single metric tells the full story. See the BSP:RANI3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Irani Papel E Embalagem Business Description

Address Rua General Joao Manoel, 157, 9th Floor, Room 903, Porto Alegre, RS, BRA, 90010-030
Irani Papel E Embalagem SA is a paper packaging company. The company's reportable segments include corrugated cardboard (PO) packaging segment manufactures light and heavy corrugated cardboard boxes and sheets. Its packaging paper segment produces low and high-weight Kraft paper and recycled paper for the domestic and foreign markets. The RS forest and resins segment plants pine trees for their own consumption. It generates maximum revenue from the corrugated cardboard (PO) packaging segment.
77GF Score

Get the complete analysis for BSP:RANI3

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

R$7.80
Price
R$9.20
GF Value