Arjo ABFRA:A39 +1.10%73 Interest Coverage is 5.31 as of Mar. 2026, which is 3% below its 10-year median of 5.46. GuruFocus rates FRA:A39 with a GF Score™ of 73/100 and a GF Value™ of €3.27 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 89 Medical Distribution companies, Arjo AB ranks worse than 64.04% 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. Arjo AB's
Operating Income
for the
three
months ended in Mar. 2026 was €17.7 Mil. Arjo AB's Interest Expense for the
three
months ended in Mar. 2026 was €-3.3 Mil.
Arjo AB's interest coverage for the quarter that ended in Mar. 2026 was 5.31.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Arjo AB's Interest Coverage or its related term are showing as below:
FRA:A39'
s Interest Coverage Range Over the Past 10 Years
Min: 3.74 Med: 5.46 Max: 12.92
Current: 4.02
FRA:A39's Interest Coverage is ranked worse than 64.04% of 89
companies
in the Medical Distribution industry
Industry Median: 6.23
vs FRA:A39: 4.02
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 .
Arjo AB Interest Coverage Related Terms
Arjo AB Interest Coverage Historical Data
* Premium members only.
The historical data trend for Arjo AB'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:A39 vs MCK, CAH, COR: Interest Coverage Comparison
For the Medical Distribution subindustry, Arjo AB'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.
Arjo AB Interest Coverage vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Arjo AB's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Arjo AB'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.
Arjo AB (FRA:A39) has a Interest Coverage of 5.31 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arjo AB and its competitors. This is near median its historical median of 5.46. Over the past decade, Arjo AB's Interest Coverage has ranged from 3.74 to 12.92. According to the industry distribution chart, Arjo AB ranks #57 out of 89 companies in the Medical Distribution industry, placing it in the top 64%.
Is Arjo AB's Interest Coverage too high?
Arjo AB's current Interest Coverage of 5.31 is near median its 10-year median of 5.46. Over the past 10 years, this metric has ranged from a low of 3.74 to a high of 12.92. The Medical Distribution industry median Interest Coverage is 6.23. Arjo AB's value of 5.31 is 14.8% below this industry median. Based on the distribution chart, Arjo AB ranks #57 out of 89 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, Arjo AB has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arjo AB's Interest Coverage compare to MCK and CAH?
According to the Medical Distribution industry distribution chart, Arjo AB ranks #57 out of 89 companies for Interest Coverage. This places Arjo AB in the lower half of its industry. The industry median Interest Coverage is 6.23. Arjo AB's value of 5.31 is 14.8% below this benchmark. Historically, Arjo AB's own Interest Coverage has ranged from 3.74 to 12.92 over the past decade. While the company's 10-year median is 5.46 vs. the industry median of 6.23, Arjo AB 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 Medical Distribution company?
The median Interest Coverage among Medical Distribution companies is 6.23, based on 89 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. Arjo AB's current Interest Coverage of 5.31 is 14.8% 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 Arjo AB and its competitors. For the Medical Distribution industry, the median Interest Coverage is 6.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arjo AB's current Interest Coverage is 5.31, which is near median its own 10-year median of 5.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arjo AB stock overvalued right now?
Based on GuruFocus' analysis, Arjo AB (FRA:A39) is currently considered Significantly Undervalued. The stock's GF Value™ is €3.27, compared to a current price of €2.21 — trading 32.4% below its estimated fair value. The current Interest Coverage is 5.31, which is near median its 10-year median of 5.46 and 14.8% below the Medical Distribution industry median of 6.23. Arjo AB's overall GF Score™ is 73/100 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 Arjo AB (FRA:A39), the current Interest Coverage is 5.31 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 Arjo AB (FRA:A39) Overvalued in 2026?
Based on GuruFocus' analysis, Arjo AB stock appears to be undervalued.
The current stock price of €2.21 is trading 32.4% below its estimated GF Value™ of €3.27.
GuruFocus considers Arjo AB to be Significantly Undervalued.
Key valuation signals for FRA:A39:
Interest Coverage: 5.31 (near median its 10-year median of 5.46)
GF Value™: €3.27 vs. price of €2.21 (32.4% below fair value)
Industry Position: 14.8% below the Medical Distribution median (#57 of 89)
No single metric tells the full story. See the FRA:A39 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arjo AB is a supplier of medical devices, services, and solutions in Sweden. It serves its services to private and public institutions with acute care and long-term care. The company's offering includes products and solutions for patient handling, hygiene, disinfection, medical beds, therapeutic surfaces, venous thromboembolism (VTE) prevention and diagnostics. The company includes segments: Global Sales, North America, Diagnostics.
73GF Score
Get the complete analysis for FRA:A39
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