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. Houston American Energy's
Operating Income
for the
three
months ended in Sep. 2025 was €-5.73 Mil. Houston American Energy's Interest Expense for the
three
months ended in Sep. 2025 was €-0.09 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
(1) 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.
The historical rank and industry rank for Houston American Energy's Interest Coverage or its related term are showing as below:
FRA:8H6's Interest Coverage is not ranked *
in the Oil & Gas industry.
Industry Median: 5.84 * Ranked among companies with meaningful Interest Coverage only.
Houston American Energy (FRA:8H6) 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 .
Houston American Energy Interest Coverage Related Terms
Houston American Energy Interest Coverage Historical Data
* Premium members only.
The historical data trend for Houston American 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.
FRA:8H6 vs PVL, EP, LRDC: Interest Coverage Comparison
For the Oil & Gas E&P subindustry, Houston American 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.
Houston American Energy Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Houston American Energy's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Houston American Energy's Interest Coverage falls into.
Houston American Energy 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:
Houston American Energy did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Houston American Energy (FRA:8H6) has a Interest Coverage of 0 (At Loss) as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Houston American Energy and its competitors.
Is Houston American Energy's Interest Coverage too high?
Houston American Energy's current Interest Coverage is 0 (At Loss). Overall, Houston American Energy has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does Houston American Energy's Interest Coverage compare to PVL and EP?
Houston American Energy's Interest Coverage of 0 (At Loss) can be compared against companies in the Oil & Gas industry. The industry median Interest Coverage is 5.84. 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 5.84, 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. 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 Houston American Energy and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Houston American Energy's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Houston American Energy stock overvalued right now?
Houston American Energy (FRA:8H6) has a current Interest Coverage of 0 (At Loss). The stock's GF Value™ is €7.93, compared to a current price of €1.70 — trading 78.6% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Houston American Energy's overall GF Score™ is 36/100 with 5 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 Houston American Energy (FRA:8H6), the current Interest Coverage is 0 (At Loss) 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.
Is Houston American Energy (FRA:8H6) Overvalued in 2026?
Based on GuruFocus' analysis, Houston American Energy stock appears to be undervalued.
The current stock price of €1.70 is trading 78.6% below its estimated GF Value™ of €7.93.
Key valuation signals for FRA:8H6:
Interest Coverage: 0 (At Loss)
GF Value™: €7.93 vs. price of €1.70 (78.6% below fair value)
No single metric tells the full story. See the FRA:8H6 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Houston American Energy Corp is an independent oil and gas company focused on the development, exploration, exploitation, acquisition, and production of natural gas and crude oil properties. Its properties, and operations, are in the U.S. Permian Basin, the U.S. Gulf Coast region, particularly Louisiana, and the South American country of Colombia. Geographically, the company currently has operations in two geographical areas, the United States, from where it derives maximum revenue, and Colombia.
36GF Score
Get the complete analysis for FRA:8H6
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