Ependion AB (CHIX:EPENS) Interest Coverage: 5.34 (As of Mar. 2026) — 28% Below Median


CHIX:EPENS Ependion AB CHIX:EPENS
80 GF Score
Price kr104.50
GF Value kr77.24
! 8 Warning Signs
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What is Ependion AB Interest Coverage?

Ependion AB CHIX:EPENS 80 Interest Coverage is 5.34 as of Mar. 2026, which is 28% below its 10-year median of 7.46. GuruFocus rates CHIX:EPENS with a GF Score™ of 80/100 and a GF Value™ of kr77.24. The stock has 8 warning signs investors should review. Among 1,672 Hardware companies, Ependion AB ranks worse than 72.19% 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. Ependion AB's Operating Income for the three months ended in Mar. 2026 was kr67 Mil. Ependion AB's Interest Expense for the three months ended in Mar. 2026 was kr-13 Mil. Ependion AB's interest coverage for the quarter that ended in Mar. 2026 was 5.34. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Ependion AB's Interest Coverage or its related term are showing as below:

CHIX:EPENs' s Interest Coverage Range Over the Past 10 Years
Min: 1.08   Med: 7.46   Max: 9.12
Current: 5.41


CHIX:EPENs's Interest Coverage is ranked worse than
72.19% of 1672 companies
in the Hardware industry
Industry Median: 13.73 vs CHIX:EPENs: 5.41

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


Ependion AB  (CHIX:EPENs) 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 .


Ependion AB Interest Coverage Related Terms


Ependion AB Interest Coverage Historical Data

* Premium members only.

The historical data trend for Ependion AB'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.

Ependion AB Interest Coverage Chart

Ependion AB 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 9.00 9.12 7.46 5.17 6.17

Ependion AB 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 10.67 3.80 8.39 5.88 5.34

CHIX:EPENS vs CSCO, CIEN, MSI: Interest Coverage Comparison

For the Communication Equipment subindustry, Ependion AB'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.


Ependion AB Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, Ependion AB's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ependion AB's Interest Coverage falls into.


CHIX:EPENS
80GF Score
Ependion AB CHIX:EPENS
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Ependion AB 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.

Ependion AB'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, Ependion AB's Interest Expense was kr-32 Mil. Its Operating Income was kr198 Mil. And its Long-Term Debt & Capital Lease Obligation was kr485 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*198.444/-32.185
=6.17

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

Here, for the three months ended in Mar. 2026, Ependion AB's Interest Expense was kr-13 Mil. Its Operating Income was kr67 Mil. And its Long-Term Debt & Capital Lease Obligation was kr488 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*66.846/-12.527
=5.34

* 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 5.34 mean?
Ependion AB (CHIX:EPENS) has a Interest Coverage of 5.34 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ependion AB and its competitors. This is 28% below median its historical median of 7.46. Over the past decade, Ependion AB's Interest Coverage has ranged from 1.08 to 9.12. According to the industry distribution chart, Ependion AB ranks #1207 out of 1672 companies in the Hardware industry, placing it in the top 72.2%.
Is Ependion AB's Interest Coverage too high?
Ependion AB's current Interest Coverage of 5.34 is 28% below median its 10-year median of 7.46. Over the past 10 years, this metric has ranged from a low of 1.08 to a high of 9.12. The Hardware industry median Interest Coverage is 13.73. Ependion AB's value of 5.34 is 61.1% below this industry median. Based on the distribution chart, Ependion AB ranks #1207 out of 1672 companies in the Hardware industry, which is below the industry midpoint. Overall, Ependion AB has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Ependion AB's Interest Coverage compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Ependion AB ranks #1207 out of 1672 companies for Interest Coverage. This places Ependion AB in the lower half of its industry. The industry median Interest Coverage is 13.73. Ependion AB's value of 5.34 is 61.1% below this benchmark. Historically, Ependion AB's own Interest Coverage has ranged from 1.08 to 9.12 over the past decade. While the company's 10-year median is 7.46 vs. the industry median of 13.73, Ependion AB 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.73, based on 1,672 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. Ependion AB's current Interest Coverage of 5.34 is 61.1% 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 Ependion AB and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ependion AB's current Interest Coverage is 5.34, which is 28% below median its own 10-year median of 7.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ependion AB stock overvalued right now?
Ependion AB (CHIX:EPENS) has a current Interest Coverage of 5.34. The stock's GF Value™ is kr77.24, compared to a current price of kr104.50 — trading 35.3% above its estimated fair value. The current Interest Coverage is 5.34, which is 28% below median its 10-year median of 7.46 and 61.1% below the Hardware industry median of 13.73. Ependion AB's overall GF Score™ is 80/100 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 Ependion AB (CHIX:EPENS), the current Interest Coverage is 5.34 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 Ependion AB (CHIX:EPENS) Overvalued in 2026?

Based on GuruFocus' analysis, Ependion AB stock appears to be overvalued. The current stock price of kr104.50 is trading 35.3% above its estimated GF Value™ of kr77.24.

Key valuation signals for CHIX:EPENS:

  • Interest Coverage: 5.34 (28% below median its 10-year median of 7.46)
  • GF Value™: kr77.24 vs. price of kr104.50 (35.3% above fair value)
  • GF Score™: 80/100 with 8 warning signs
  • Industry Position: 61.1% below the Hardware median (#1207 of 1672)

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


Ependion AB Business Description

Address Stora Varvsgatan 13A, Box 426, Malmo, SWE, SE-201 24
Ependion AB is technology group delivering digital solutions for secure control, visualization and data communication for industrial applications in environments where reliability and high quality are critical factors. The operating segments are divided between the Beijer Electronics and Westermo business entities. Beijer; and Westermo. It generates majority of revenue from Westermo which develops robust and secure communication solutions for harsh environments, with its focus on rail networks, with the business entity being the world'wide market leader in its niche for trackside and for the energy sector. The company has presence in Nordics, Rest of Europe, North America, Asia, and Rest of world.
80GF Score

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

kr104.50
Price
kr77.24
GF Value