Freehold RoyaltiesFRA:1FH -0.14%77 Interest Coverage is 10.66 as of Mar. 2026, which is 3% above its 10-year median of 10.32. GuruFocus rates FRA:1FH with a GF Score™ of 77/100 and a GF Value™ of €7.86 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 731 Oil & Gas companies, Freehold Royalties ranks better than 60.19% 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. Freehold Royalties's
Operating Income
for the
three
months ended in Mar. 2026 was €25.3 Mil. Freehold Royalties's Interest Expense for the
three
months ended in Mar. 2026 was €-2.4 Mil.
Freehold Royalties's interest coverage for the quarter that ended in Mar. 2026 was 10.66.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Freehold Royalties's Interest Coverage or its related term are showing as below:
FRA:1FH'
s Interest Coverage Range Over the Past 10 Years
Min: 5.75 Med: 10.32 Max: 42.1
Current: 8.73
FRA:1FH's Interest Coverage is ranked better than 60.19% of 731
companies
in the Oil & Gas industry
Industry Median: 5.89
vs FRA:1FH: 8.73
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 .
Freehold Royalties Interest Coverage Related Terms
Freehold Royalties Interest Coverage Historical Data
* Premium members only.
The historical data trend for Freehold Royalties'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:1FH vs COP, EOG, FANG: Interest Coverage Comparison
For the Oil & Gas E&P subindustry, Freehold Royalties'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.
Freehold Royalties Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Freehold Royalties's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Freehold Royalties'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.
Freehold Royalties (FRA:1FH) has a Interest Coverage of 10.66 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Freehold Royalties and its competitors. This is near median its historical median of 10.32. Over the past decade, Freehold Royalties' Interest Coverage has ranged from 5.75 to 42.10. According to the industry distribution chart, Freehold Royalties ranks #291 out of 731 companies in the Oil & Gas industry, placing it in the top 39.8%.
Is Freehold Royalties' Interest Coverage too high?
Freehold Royalties' current Interest Coverage of 10.66 is near median its 10-year median of 10.32. Over the past 10 years, this metric has ranged from a low of 5.75 to a high of 42.10. The Oil & Gas industry median Interest Coverage is 5.89. Freehold Royalties' value of 10.66 is 81% above this industry median. Based on the distribution chart, Freehold Royalties ranks #291 out of 731 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Freehold Royalties has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Freehold Royalties' Interest Coverage compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Freehold Royalties ranks #291 out of 731 companies for Interest Coverage. This puts Freehold Royalties in the upper half of its industry. The industry median Interest Coverage is 5.89. Freehold Royalties' value of 10.66 is 81% above this benchmark. Historically, Freehold Royalties' own Interest Coverage has ranged from 5.75 to 42.10 over the past decade. While the company's 10-year median is 10.32 vs. the industry median of 5.89, Freehold Royalties has consistently been above 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 731 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. Freehold Royalties's current Interest Coverage of 10.66 is 81% above 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 Freehold Royalties 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. Freehold Royalties's current Interest Coverage is 10.66, which is near median its own 10-year median of 10.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freehold Royalties stock overvalued right now?
Based on GuruFocus' analysis, Freehold Royalties (FRA:1FH) is currently considered Modestly Overvalued. The stock's GF Value™ is €7.86, compared to a current price of €9.99 — trading 27% above its estimated fair value. The current Interest Coverage is 10.66, which is near median its 10-year median of 10.32 and 81% above the Oil & Gas industry median of 5.89. Freehold Royalties' overall GF Score™ is 77/100 with 8 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 Freehold Royalties (FRA:1FH), the current Interest Coverage is 10.66 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 Freehold Royalties (FRA:1FH) Overvalued in 2026?
Based on GuruFocus' analysis, Freehold Royalties stock appears to be overvalued.
The current stock price of €9.99 is trading 27% above its estimated GF Value™ of €7.86.
GuruFocus considers Freehold Royalties to be Modestly Overvalued.
Key valuation signals for FRA:1FH:
Interest Coverage: 10.66 (near median its 10-year median of 10.32)
GF Value™: €7.86 vs. price of €9.99 (27% above fair value)
Industry Position: 81% above the Oil & Gas median (#291 of 731)
No single metric tells the full story. See the FRA:1FH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Freehold Royalties Ltd is in acquiring and managing Oil and Gas royalties. It operates in two segments: Canada, which includes exploration and evaluation assets and the petroleum and natural gas interests in Western Canada; and the United States, which includes petroleum and natural gas interests held in the Permian (Midland and Delaware), Eagle Ford, Haynesville, and Bakken basins located in the states of Texas, New Mexico, and North Dakota. The maximum revenue is generated from the Canada Segment.
77GF Score
Get the complete analysis for FRA:1FH
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