Canacol EnergyCNNEQ Interest Coverage is 2.31 as of Sep. 2025, which is 31% below its 10-year median of 3.36. The stock has 4 warning signs investors should review. Among 728 Oil & Gas companies, Canacol Energy ranks worse than 72.12% 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. Canacol Energy's
Operating Income
for the
three
months ended in Sep. 2025 was $33.3 Mil. Canacol Energy's Interest Expense for the
three
months ended in Sep. 2025 was $-14.4 Mil.
Canacol Energy's interest coverage for the quarter that ended in Sep. 2025 was 2.31.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Canacol Energy Ltd interest coverage is 2.64, which is low.
The historical rank and industry rank for Canacol Energy's Interest Coverage or its related term are showing as below:
CNNEQ'
s Interest Coverage Range Over the Past 10 Years
Min: 0.93 Med: 3.36 Max: 4.19
Current: 2.64
CNNEQ's Interest Coverage is ranked worse than 72.12% of 728
companies
in the Oil & Gas industry
Industry Median: 5.885
vs CNNEQ: 2.64
Canacol Energy (OTCPK:CNNEQ) 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 .
Canacol Energy Interest Coverage Related Terms
Canacol Energy Interest Coverage Historical Data
* Premium members only.
The historical data trend for Canacol Energy'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.
CNNEQ vs LEEN, SPOWF, BRLL: Interest Coverage Comparison
For the Oil & Gas E&P subindustry, Canacol Energy'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.
Canacol Energy Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Canacol Energy's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Canacol Energy'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.
Canacol Energy (CNNEQ) has a Interest Coverage of 2.31 as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Canacol Energy and its competitors. This is 31% below median its historical median of 3.36. Over the past decade, Canacol Energy's Interest Coverage has ranged from 0.93 to 4.19. According to the industry distribution chart, Canacol Energy ranks #525 out of 728 companies in the Oil & Gas industry, placing it in the top 72.1%.
Is Canacol Energy's Interest Coverage too high?
Canacol Energy's current Interest Coverage of 2.31 is 31% below median its 10-year median of 3.36. Over the past 10 years, this metric has ranged from a low of 0.93 to a high of 4.19. The Oil & Gas industry median Interest Coverage is 5.89. Canacol Energy's value of 2.31 is 60.7% below this industry median. Based on the distribution chart, Canacol Energy ranks #525 out of 728 companies in the Oil & Gas industry, which is below the industry midpoint.
How does Canacol Energy's Interest Coverage compare to LEEN and SPOWF?
According to the Oil & Gas industry distribution chart, Canacol Energy ranks #525 out of 728 companies for Interest Coverage. This places Canacol Energy in the lower half of its industry. The industry median Interest Coverage is 5.89. Canacol Energy's value of 2.31 is 60.7% below this benchmark. Historically, Canacol Energy's own Interest Coverage has ranged from 0.93 to 4.19 over the past decade. While the company's 10-year median is 3.36 vs. the industry median of 5.89, Canacol Energy 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 an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 728 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. Canacol Energy's current Interest Coverage of 2.31 is 60.7% 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 Canacol Energy and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canacol Energy's current Interest Coverage is 2.31, which is 31% below median its own 10-year median of 3.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canacol Energy stock overvalued right now?
Based on GuruFocus' analysis, Canacol Energy (CNNEQ) is currently considered Possible Value Trap. The stock's GF Value™ is $3.25, compared to a current price of $0.01 — trading 99.7% below its estimated fair value. The current Interest Coverage is 2.31, which is 31% below median its 10-year median of 3.36 and 60.7% below the Oil & Gas industry median of 5.89. 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 Canacol Energy (CNNEQ), the current Interest Coverage is 2.31 as of Sep. 2025. 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.
Canacol Energy Ltd is a natural gas and oil exploration and production company. The company operates in the Lower and Middle Magdalena Basins of Colombia.
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