Energy Resources of AustraliaEGRAY -96.25% Interest Coverage is 0.42 as of Dec. 2025, which is 30% below its 10-year median of 0.60. The stock has 4 warning signs investors should review. Among 112 Other Energy Sources companies, Energy Resources of Australia ranks worse than 98.21% 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. Energy Resources of Australia's
Operating Income
for the
six
months ended in Dec. 2025 was $20.07 Mil. Energy Resources of Australia's Interest Expense for the
six
months ended in Dec. 2025 was $-48.11 Mil.
Energy Resources of Australia's interest coverage for the quarter that ended in Dec. 2025 was 0.42.
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. Energy Resources of Australia Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Energy Resources of Australia's Interest Coverage or its related term are showing as below:
EGRAY'
s Interest Coverage Range Over the Past 10 Years
Min: 0.17 Med: 0.6 Max: 1.35
Current: 0.17
EGRAY's Interest Coverage is ranked worse than 98.21% of 112
companies
in the Other Energy Sources industry
Industry Median: 10.27
vs EGRAY: 0.17
Energy Resources of Australia (OTCPK:EGRAY) 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 .
Energy Resources of Australia Interest Coverage Related Terms
Energy Resources of Australia Interest Coverage Historical Data
* 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.
Energy Resources of Australia Interest Coverage Chart
For the Uranium subindustry, Energy Resources of Australia'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.
Energy Resources of Australia Interest Coverage vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Energy Resources of Australia's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Energy Resources of Australia's Interest Coverage falls into.
Energy Resources of Australia 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:
* 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.
Energy Resources of Australia (EGRAY) has a Interest Coverage of 0.42 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Energy Resources of Australia and its competitors. This is 30% below median its historical median of 0.60. Over the past decade, Energy Resources of Australia's Interest Coverage has ranged from 0.17 to 1.35. According to the industry distribution chart, Energy Resources of Australia ranks #110 out of 112 companies in the Other Energy Sources industry, placing it in the top 98.2%.
Is Energy Resources of Australia's Interest Coverage too high?
Energy Resources of Australia's current Interest Coverage of 0.42 is 30% below median its 10-year median of 0.60. Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 1.35. The Other Energy Sources industry median Interest Coverage is 10.27. Energy Resources of Australia's value of 0.42 is 95.9% below this industry median. Based on the distribution chart, Energy Resources of Australia ranks #110 out of 112 companies in the Other Energy Sources industry, which is in the bottom quartile relative to peers.
How does Energy Resources of Australia's Interest Coverage compare to UEC and LEU?
According to the Other Energy Sources industry distribution chart, Energy Resources of Australia ranks #110 out of 112 companies for Interest Coverage. This places Energy Resources of Australia in the lower half of its industry. The industry median Interest Coverage is 10.27. Energy Resources of Australia's value of 0.42 is 95.9% below this benchmark. Historically, Energy Resources of Australia's own Interest Coverage has ranged from 0.17 to 1.35 over the past decade. While the company's 10-year median is 0.60 vs. the industry median of 10.27, Energy Resources of Australia 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 Other Energy Sources company?
The median Interest Coverage among Other Energy Sources companies is 10.27, based on 112 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. Energy Resources of Australia's current Interest Coverage of 0.42 is 95.9% 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 Energy Resources of Australia and its competitors. For the Other Energy Sources industry, the median Interest Coverage is 10.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Resources of Australia's current Interest Coverage is 0.42, which is 30% below median its own 10-year median of 0.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Energy Resources of Australia stock overvalued right now?
Based on GuruFocus' analysis, Energy Resources of Australia (EGRAY) is currently considered Possible Value Trap. The stock's GF Value™ is $0.05, compared to a current price of $0.01 — trading 85% below its estimated fair value. The current Interest Coverage is 0.42, which is 30% below median its 10-year median of 0.60 and 95.9% below the Other Energy Sources industry median of 10.27. 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 Energy Resources of Australia (EGRAY), the current Interest Coverage is 0.42 as of Dec. 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.
Energy Resources of Australia Business Description
Energy Resources of Australia Ltd (ERA) is a uranium mining company based in Australia. It is currently focused on the site rehabilitation of the Ranger Project Area.
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