Renova EnergiaBSP:RNEW3 -1.10%51 Interest Coverage is 0 (At Loss) as of Mar. 2026. GuruFocus rates BSP:RNEW3 with a GF Score™ of 51/100 and a GF Value™ of R$1.28 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 320 Utilities - Independent Power Producers companies, Renova Energia ranks worse than 312499.69% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Renova Energia's
Operating Income
for the
three
months ended in Mar. 2026 was R$-14.0 Mil. Renova Energia's Interest Expense for the
three
months ended in Mar. 2026 was R$-29.4 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 Renova Energia's Interest Coverage or its related term are showing as below:
BSP:RNEW3's Interest Coverage is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 2.915 * Ranked among companies with meaningful Interest Coverage only.
Renova Energia (BSP:RNEW3) 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 .
Renova Energia Interest Coverage Related Terms
Renova Energia Interest Coverage Historical Data
* Premium members only.
The historical data trend for Renova Energia'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.
Renova Energia Interest Coverage Competitor Comparison
For the Utilities - Renewable subindustry, Renova Energia'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.
Renova Energia Interest Coverage vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Renova Energia's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Renova Energia'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:
Renova Energia did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Renova Energia (BSP:RNEW3) 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 Renova Energia and its competitors. According to the industry distribution chart, Renova Energia ranks #999999 out of 320 companies in the Utilities - Independent Power Producers industry.
Is Renova Energia's Interest Coverage too high?
Renova Energia's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Renova Energia ranks #999999 out of 320 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, Renova Energia has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Renova Energia's Interest Coverage compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Renova Energia ranks #999999 out of 320 companies for Interest Coverage. This places Renova Energia in the lower half of its industry. The industry median Interest Coverage is 2.92. 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 2.92, based on 320 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 Renova Energia and its competitors. For the Utilities - Independent Power Producers industry, the median Interest Coverage is 2.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Renova Energia'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 Renova Energia stock overvalued right now?
Based on GuruFocus' analysis, Renova Energia (BSP:RNEW3) is currently considered Possible Value Trap. The stock's GF Value™ is R$1.28, compared to a current price of R$0.90 — trading 29.7% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Renova Energia's overall GF Score™ is 51/100 with 3 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 Renova Energia (BSP:RNEW3), 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 Renova Energia (BSP:RNEW3) Overvalued in 2026?
Based on GuruFocus' analysis, Renova Energia stock appears to be undervalued.
The current stock price of R$0.90 is trading 29.7% below its estimated GF Value™ of R$1.28.
GuruFocus considers Renova Energia to be Possible Value Trap.
Key valuation signals for BSP:RNEW3:
Interest Coverage: 0 (At Loss)
GF Value™: R$1.28 vs. price of R$0.90 (29.7% below fair value)
No single metric tells the full story. See the BSP:RNEW3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Renova Energia SA is a Brazilian energy company engaged in the development, implementation, and operation of power generation projects from renewable sources - wind and solar, and trading of energy and related activities. The company is generating and trading electric power in all its forms, producing fuel from natural and renewable sources, providing logistics services to environmental advisory firms, and providing advisory services for energy solutions related to the generation, trading, transmission, and other businesses. The company has operating segments, namely: Wind, Solar, Trading, and Administrative. It derives maximum revenue from the Trading segment, which is engaged in energy trading in all its forms and management of the Company's energy purchase and sale contracts.
51GF Score
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