Coles GroupFRA:2OF 72 Interest Coverage is 16.30 as of Dec. 2025, which is 48% below its 10-year median of 31.18. GuruFocus rates FRA:2OF with a GF Score™ of 72/100 and a GF Value™ of €12.19 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 254 Retail - Defensive companies, Coles Group ranks better than 60.24% 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. Coles Group's
Operating Income
for the
six
months ended in Dec. 2025 was €527 Mil. Coles Group's Interest Expense for the
six
months ended in Dec. 2025 was €-32 Mil.
Coles Group's interest coverage for the quarter that ended in Dec. 2025 was 16.30.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Coles Group's Interest Coverage or its related term are showing as below:
FRA:2OF'
s Interest Coverage Range Over the Past 10 Years
Min: 15.46 Med: 31.18 Max: 47.68
Current: 15.46
FRA:2OF's Interest Coverage is ranked better than 60.24% of 254
companies
in the Retail - Defensive industry
Industry Median: 9.065
vs FRA:2OF: 15.46
Coles Group (FRA:2OF) 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 .
Coles Group Interest Coverage Related Terms
Coles Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Coles Group'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:2OF vs KR, SFM, ACI: Interest Coverage Comparison
For the Grocery Stores subindustry, Coles Group'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.
Coles Group Interest Coverage vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Coles Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Coles Group'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.
Coles Group (FRA:2OF) has a Interest Coverage of 16.30 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Coles Group and its competitors. This is 48% below median its historical median of 31.18. Over the past decade, Coles Group's Interest Coverage has ranged from 15.46 to 47.68. According to the industry distribution chart, Coles Group ranks #101 out of 254 companies in the Retail - Defensive industry, placing it in the top 39.8%.
Is Coles Group's Interest Coverage too high?
Coles Group's current Interest Coverage of 16.30 is 48% below median its 10-year median of 31.18. Over the past 10 years, this metric has ranged from a low of 15.46 to a high of 47.68. The Retail - Defensive industry median Interest Coverage is 9.07. Coles Group's value of 16.30 is 79.8% above this industry median. Based on the distribution chart, Coles Group ranks #101 out of 254 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Coles Group has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Coles Group's Interest Coverage compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Coles Group ranks #101 out of 254 companies for Interest Coverage. This puts Coles Group in the upper half of its industry. The industry median Interest Coverage is 9.07. Coles Group's value of 16.30 is 79.8% above this benchmark. Historically, Coles Group's own Interest Coverage has ranged from 15.46 to 47.68 over the past decade. While the company's 10-year median is 31.18 vs. the industry median of 9.07, Coles Group 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 a Retail - Defensive company?
The median Interest Coverage among Retail - Defensive companies is 9.07, based on 254 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. Coles Group's current Interest Coverage of 16.30 is 79.8% 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 Coles Group and its competitors. For the Retail - Defensive industry, the median Interest Coverage is 9.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Coles Group's current Interest Coverage is 16.30, which is 48% below median its own 10-year median of 31.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coles Group stock overvalued right now?
Based on GuruFocus' analysis, Coles Group (FRA:2OF) is currently considered Modestly Overvalued. The stock's GF Value™ is €12.19, compared to a current price of €14.20 — trading 16.5% above its estimated fair value. The current Interest Coverage is 16.30, which is 48% below median its 10-year median of 31.18 and 79.8% above the Retail - Defensive industry median of 9.07. Coles Group's overall GF Score™ is 72/100 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 Coles Group (FRA:2OF), the current Interest Coverage is 16.30 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.
Is Coles Group (FRA:2OF) Overvalued in 2026?
Based on GuruFocus' analysis, Coles Group stock appears to be overvalued.
The current stock price of €14.20 is trading 16.5% above its estimated GF Value™ of €12.19.
GuruFocus considers Coles Group to be Modestly Overvalued.
Key valuation signals for FRA:2OF:
Interest Coverage: 16.30 (48% below median its 10-year median of 31.18)
GF Value™: €12.19 vs. price of €14.20 (16.5% above fair value)
Industry Position: 79.8% above the Retail - Defensive median (#101 of 254)
No single metric tells the full story. See the FRA:2OF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coles is one of Australia's largest retailers, operating the second-largest supermarket chain behind market leader Woolworths, and the country's second-largest liquor chain. The group has an extensive store network of over 1,800 stores and roughly 80% of Australians live within a 10-minute drive from a Coles store. The retailer employs some 120,000 people, who process some 20 million individual customer transactions a week. This compares with Woolworths processing about 30 million customer transactions per week from Australia's population of 27 million.
72GF Score
Get the complete analysis for FRA:2OF
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