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Franchise BrandsCHIX:FRANL +2.78%71 Interest Coverage is 1.49 as of Jun. 2026, which is 84% below its 10-year median of 9.17. GuruFocus rates CHIX:FRANL with a GF Score™ of 71/100 and a GF Value™ of £1.77 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 810 Business Services companies, Franchise Brands ranks worse than 75.31% 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. Franchise Brands's
Operating Income
for the
six
months ended in Jun. 2026 was £3.8 Mil. Franchise Brands's Interest Expense for the
six
months ended in Jun. 2026 was £-2.6 Mil.
Franchise Brands's interest coverage for the quarter that ended in Jun. 2026 was 1.49.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Franchise Brands's Interest Coverage or its related term are showing as below:
CHIX:FRANl'
s Interest Coverage Range Over the Past 10 Years
Min: 0.7 Med: 9.17 Max: 87.89
Current: 3.47
CHIX:FRANl's Interest Coverage is ranked worse than 75.31% of 810
companies
in the Business Services industry
Industry Median: 13.24
vs CHIX:FRANl: 3.47
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 .
Franchise Brands Interest Coverage Related Terms
Franchise Brands Interest Coverage Historical Data
* Premium members only.
The historical data trend for Franchise Brands'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.
CHIX:FRANL vs CTAS, CPRT, GPN: Interest Coverage Comparison
For the Specialty Business Services subindustry, Franchise Brands'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.
Franchise Brands Interest Coverage vs Business Services Industry
For the Business Services industry and Industrials sector, Franchise Brands's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Franchise Brands'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.
Franchise Brands (CHIX:FRANL) has a Interest Coverage of 1.49 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Franchise Brands and its competitors. This is 84% below median its historical median of 9.17. Over the past decade, Franchise Brands' Interest Coverage has ranged from 0.70 to 87.89. According to the industry distribution chart, Franchise Brands ranks #610 out of 810 companies in the Business Services industry, placing it in the top 75.3%.
Is Franchise Brands' Interest Coverage too high?
Franchise Brands' current Interest Coverage of 1.49 is 84% below median its 10-year median of 9.17. Over the past 10 years, this metric has ranged from a low of 0.70 to a high of 87.89. The Business Services industry median Interest Coverage is 13.24. Franchise Brands' value of 1.49 is 88.7% below this industry median. Based on the distribution chart, Franchise Brands ranks #610 out of 810 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Franchise Brands has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Franchise Brands' Interest Coverage compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Franchise Brands ranks #610 out of 810 companies for Interest Coverage. This places Franchise Brands in the lower half of its industry. The industry median Interest Coverage is 13.24. Franchise Brands' value of 1.49 is 88.7% below this benchmark. Historically, Franchise Brands' own Interest Coverage has ranged from 0.70 to 87.89 over the past decade. While the company's 10-year median is 9.17 vs. the industry median of 13.24, Franchise Brands 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 Business Services company?
The median Interest Coverage among Business Services companies is 13.24, based on 810 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. Franchise Brands's current Interest Coverage of 1.49 is 88.7% 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 Franchise Brands and its competitors. For the Business Services industry, the median Interest Coverage is 13.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Franchise Brands's current Interest Coverage is 1.49, which is 84% below median its own 10-year median of 9.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Franchise Brands stock overvalued right now?
Based on GuruFocus' analysis, Franchise Brands (CHIX:FRANL) is currently considered Modestly Undervalued. The stock's GF Value™ is £1.77, compared to a current price of £1.48 — trading 16.4% below its estimated fair value. The current Interest Coverage is 1.49, which is 84% below median its 10-year median of 9.17 and 88.7% below the Business Services industry median of 13.24. Franchise Brands' overall GF Score™ is 71/100 with 7 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 Franchise Brands (CHIX:FRANL), the current Interest Coverage is 1.49 as of Jun. 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 Franchise Brands (CHIX:FRANL) Overvalued in 2026?
Based on GuruFocus' analysis, Franchise Brands stock appears to be undervalued.
The current stock price of £1.48 is trading 16.4% below its estimated GF Value™ of £1.77.
GuruFocus considers Franchise Brands to be Modestly Undervalued.
Key valuation signals for CHIX:FRANL:
Interest Coverage: 1.49 (84% below median its 10-year median of 9.17)
GF Value™: £1.77 vs. price of £1.48 (16.4% below fair value)
Industry Position: 88.7% below the Business Services median (#610 of 810)
No single metric tells the full story. See the CHIX:FRANL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Franchise Brands PLC is a holding company engaged in franchising and related activities. Its brands associated with the company are Metro Rod, Chips Away, Barking Mad, Oven Clean, Metro Plumb, Willow Pumps, and Filta. Its operating segments are Pirtek Europe, Water & Waste Services, Filta International, B2C, Azura, and Other operations, and the majority of the revenue comes from the Pirtek Europe segment.
71GF Score
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