CHSCHSCP.PFD -0.59% Interest Coverage is 6.05 as of Feb. 2019, which is 19% below its 10-year median of 7.50. The stock has 1 warning sign investors should review.
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. CHS's
Operating Income
for the
three
months ended in Feb. 2019 was $249.65 Mil. CHS's Interest Expense for the
three
months ended in Feb. 2019 was $-41.27 Mil.
CHS's interest coverage for the quarter that ended in Feb. 2019 was 6.05.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for CHS's Interest Coverage or its related term are showing as below:
CHSCP.PFD'
s Interest Coverage Range Over the Past 10 Years
Min: 5.13 Med: 7.5 Max: 16.24
Current: 7.36
CHSCP.PFD's Interest Coverage is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 8.61
vs CHSCP.PFD: 7.36
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 .
CHS Interest Coverage Related Terms
CHS Interest Coverage Historical Data
* Premium members only.
The historical data trend for CHS'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.
CHSCP.PFD vs LNDC, LMNR, AEPLF: Interest Coverage Comparison
For the Farm Products subindustry, CHS'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.
CHS Interest Coverage vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, CHS's Interest Coverage distribution charts can be found below:
* The bar in red indicates where CHS'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.
CHS (CHSCP.PFD) has a Interest Coverage of 6.05 as of Feb. 2019. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on CHS and its competitors. This is 19% below median its historical median of 7.50. Over the past decade, CHS's Interest Coverage has ranged from 5.13 to 16.24.
Is CHS's Interest Coverage too high?
CHS's current Interest Coverage of 6.05 is 19% below median its 10-year median of 7.50. Over the past 10 years, this metric has ranged from a low of 5.13 to a high of 16.24. The Consumer Packaged Goods industry median Interest Coverage is 8.61. CHS's value of 6.05 is 29.7% below this industry median.
How does CHS's Interest Coverage compare to LNDC and LMNR?
CHS's Interest Coverage of 6.05 can be compared against companies in the Consumer Packaged Goods industry. The industry median Interest Coverage is 8.61. CHS's value of 6.05 is 29.7% below this benchmark. Historically, CHS's own Interest Coverage has ranged from 5.13 to 16.24 over the past decade. While the company's 10-year median is 7.50 vs. the industry median of 8.61, CHS 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 Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.61, based on 1,513 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. CHS's current Interest Coverage of 6.05 is 29.7% 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 CHS and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CHS's current Interest Coverage is 6.05, which is 19% below median its own 10-year median of 7.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CHS stock overvalued right now?
CHS (CHSCP.PFD) has a current Interest Coverage of 6.05. The current Interest Coverage is 6.05, which is 19% below median its 10-year median of 7.50 and 29.7% below the Consumer Packaged Goods industry median of 8.61. 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 CHS (CHSCP.PFD), the current Interest Coverage is 6.05 as of Feb. 2019. 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.
CHS Inc is an integrated agricultural enterprise, that provides grain, food, and energy resources to businesses and consumers. Its Energy segment produces and provides wholesale distribution of petroleum products and transportation of those products. Its Ag segment, which is the key revenue driver, purchases and processes or resells grains and oilseeds; serves as a wholesaler and retailer of crop inputs; produces and markets ethanol. Its Nitrogen Production segment consists of equity method investment in CF Nitrogen, which entitles the purchase of up to a specified quantity of granular urea and UAN annually from CF Nitrogen. Geographically, the company derives maximum revenue from North America and the rest from South America, Asia Pacific, Europe, Middle East, and Africa (EMEA).
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