Knight TherapeuticsFRA:04K +0.87%73 Interest Coverage is 4.01 as of Mar. 2026, which is 100% below its 10-year median of 10,000.00. GuruFocus rates FRA:04K with a GF Score™ of 73/100 and a GF Value™ of €5.30. The stock has 6 warning signs investors should review. Among 684 Drug Manufacturers companies, Knight Therapeutics ranks worse than 91.52% 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. Knight Therapeutics's
Operating Income
for the
three
months ended in Mar. 2026 was €6.7 Mil. Knight Therapeutics's Interest Expense for the
three
months ended in Mar. 2026 was €-1.7 Mil.
Knight Therapeutics's interest coverage for the quarter that ended in Mar. 2026 was 4.01.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Knight Therapeutics's Interest Coverage or its related term are showing as below:
FRA:04K'
s Interest Coverage Range Over the Past 10 Years
Min: 0.51 Med: No Debt Max: No Debt
Current: 1.22
FRA:04K's Interest Coverage is ranked worse than 91.52% of 684
companies
in the Drug Manufacturers industry
Industry Median: 12.765
vs FRA:04K: 1.22
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 .
Knight Therapeutics Interest Coverage Related Terms
Knight Therapeutics Interest Coverage Historical Data
* Premium members only.
The historical data trend for Knight Therapeutics'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.
FRA:04K vs ZTS, UTHR: Interest Coverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Knight Therapeutics'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.
Knight Therapeutics Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Knight Therapeutics's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Knight Therapeutics'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.
Knight Therapeutics (FRA:04K) has a Interest Coverage of 4.01 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Knight Therapeutics and its competitors. This is 100% below median its historical median of 10,000.00. Over the past decade, Knight Therapeutics' Interest Coverage has ranged from 0.51 to 10,000.00. According to the industry distribution chart, Knight Therapeutics ranks #626 out of 684 companies in the Drug Manufacturers industry, placing it in the top 91.5%.
Is Knight Therapeutics' Interest Coverage too high?
Knight Therapeutics' current Interest Coverage of 4.01 is 100% below median its 10-year median of 10,000.00. Over the past 10 years, this metric has ranged from a low of 0.51 to a high of 10,000.00. The Drug Manufacturers industry median Interest Coverage is 12.77. Knight Therapeutics' value of 4.01 is 68.6% below this industry median. Based on the distribution chart, Knight Therapeutics ranks #626 out of 684 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Knight Therapeutics has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Knight Therapeutics' Interest Coverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Knight Therapeutics ranks #626 out of 684 companies for Interest Coverage. This places Knight Therapeutics in the lower half of its industry. The industry median Interest Coverage is 12.77. Knight Therapeutics' value of 4.01 is 68.6% below this benchmark. Historically, Knight Therapeutics' own Interest Coverage has ranged from 0.51 to 10,000.00 over the past decade. While the company's 10-year median is 10,000.00 vs. the industry median of 12.77, Knight Therapeutics 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.77, based on 684 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. Knight Therapeutics's current Interest Coverage of 4.01 is 68.6% 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 Knight Therapeutics and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Knight Therapeutics's current Interest Coverage is 4.01, which is 100% below median its own 10-year median of 10,000.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Knight Therapeutics stock overvalued right now?
Knight Therapeutics (FRA:04K) has a current Interest Coverage of 4.01. The stock's GF Value™ is €5.30, compared to a current price of €5.80 — trading 9.4% above its estimated fair value. The current Interest Coverage is 4.01, which is 100% below median its 10-year median of 10,000.00 and 68.6% below the Drug Manufacturers industry median of 12.77. Knight Therapeutics' overall GF Score™ is 73/100 with 6 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 Knight Therapeutics (FRA:04K), the current Interest Coverage is 4.01 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 Knight Therapeutics (FRA:04K) Overvalued in 2026?
Based on GuruFocus' analysis, Knight Therapeutics stock appears to be overvalued.
The current stock price of €5.80 is trading 9.4% above its estimated GF Value™ of €5.30.
Key valuation signals for FRA:04K:
Interest Coverage: 4.01 (100% below median its 10-year median of 10,000.00)
GF Value™: €5.30 vs. price of €5.80 (9.4% above fair value)
Industry Position: 68.6% below the Drug Manufacturers median (#626 of 684)
No single metric tells the full story. See the FRA:04K stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Knight Therapeutics Inc is a specialty and generic drug manufacturing company. The company's principal business activity is focused on developing, acquiring, in-licensing, out-licensing, marketing, and commercializing pharmaceuticalproducts. and distributing pharmaceutical products, consumer health products, and medical devices in Canada, Latin America and select international markets. The company finances other life sciences companies across the globe in order to generate interest income, strengthen relationships in the life sciences industry, and to secure product distribution rights. Geographically, the company generates revenue from Brazil, Canada, Colombia, Argentina, Mexico, Rest of LATAM, and Others, with the majority revenue generated from the Brazil region.
73GF Score
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