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. Algoma Central's
Operating Income
for the
three
months ended in Mar. 2026 was €-18.9 Mil. Algoma Central's Interest Expense for the
three
months ended in Mar. 2026 was €-4.1 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Algoma Central's Interest Coverage or its related term are showing as below:
FRA:ACH'
s Interest Coverage Range Over the Past 10 Years
Min: 1.9 Med: 4 Max: 14
Current: 3.2
FRA:ACH's Interest Coverage is ranked worse than 66.86% of 845
companies
in the Transportation industry
Industry Median: 5.66
vs FRA:ACH: 3.20
Algoma Central (FRA:ACH) 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 .
Algoma Central Interest Coverage Related Terms
Algoma Central Interest Coverage Historical Data
* Premium members only.
The historical data trend for Algoma Central'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.
Algoma Central Interest Coverage Competitor Comparison
For the Marine Shipping subindustry, Algoma Central'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.
Algoma Central Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, Algoma Central's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Algoma Central'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:
Algoma Central 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?
Algoma Central (FRA:ACH) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Algoma Central and its competitors. Over the past decade, Algoma Central's Interest Coverage has ranged from 1.90 to 14.00. According to the industry distribution chart, Algoma Central ranks #565 out of 845 companies in the Transportation industry, placing it in the top 66.9%.
Is Algoma Central's Interest Coverage too high?
Algoma Central's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 1.90 to a high of 14.00. Based on the distribution chart, Algoma Central ranks #565 out of 845 companies in the Transportation industry, which is below the industry midpoint. Overall, Algoma Central has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Algoma Central's Interest Coverage compare to competitors?
According to the Transportation industry distribution chart, Algoma Central ranks #565 out of 845 companies for Interest Coverage. This places Algoma Central in the lower half of its industry. The industry median Interest Coverage is 5.66. Historically, Algoma Central's own Interest Coverage has ranged from 1.90 to 14.00 over the past decade. 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 Transportation company?
The median Interest Coverage among Transportation companies is 5.66, based on 845 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 Algoma Central and its competitors. For the Transportation industry, the median Interest Coverage is 5.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Algoma Central'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 Algoma Central stock overvalued right now?
Based on GuruFocus' analysis, Algoma Central (FRA:ACH) is currently considered Significantly Overvalued. The stock's GF Value™ is €10.24, compared to a current price of €13.70 — trading 33.8% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Algoma Central's overall GF Score™ is 72/100 with 11 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 Algoma Central (FRA:ACH), the current Interest Coverage is 0 (At Loss) 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 Algoma Central (FRA:ACH) Overvalued in 2026?
Based on GuruFocus' analysis, Algoma Central stock appears to be overvalued.
The current stock price of €13.70 is trading 33.8% above its estimated GF Value™ of €10.24.
GuruFocus considers Algoma Central to be Significantly Overvalued.
Key valuation signals for FRA:ACH:
Interest Coverage: 0 (At Loss)
GF Value™: €10.24 vs. price of €13.70 (33.8% above fair value)
No single metric tells the full story. See the FRA:ACH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Algoma Central Corp owns and operates a fleet of dry and liquid bulk carriers on the Great Lakes, St. Lawrence Waterway. The company's Canadian flag fleet consists of self-unloading dry-bulk carriers, gearless dry-bulk carriers, and product tankers. The company operates its business through segments that are Domestic Dry-Bulk which generates key revenue, Product Tankers, Ocean Self-Unloaders, and Corporate. The company also earns revenues from marine operations through contracts of affreightment, time charters, and pool revenue.
72GF Score
Get the complete analysis for FRA:ACH
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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