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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. Mercer International's
Operating Income
for the
three
months ended in Mar. 2026 was €-28 Mil. Mercer International's Interest Expense for the
three
months ended in Mar. 2026 was €-25 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 Mercer International's Interest Coverage or its related term are showing as below:
FRA:AEZ's Interest Coverage is not ranked *
in the Forest Products industry.
Industry Median: 4.12 * Ranked among companies with meaningful Interest Coverage only.
Mercer International (FRA:AEZ) 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 .
Mercer International Interest Coverage Related Terms
Mercer International Interest Coverage Historical Data
* Premium members only.
The historical data trend for Mercer International'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:AEZ vs ITP, SLVM: Interest Coverage Comparison
For the Paper & Paper Products subindustry, Mercer International'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.
Mercer International Interest Coverage vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Mercer International's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Mercer International's Interest Coverage falls into.
Mercer International 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:
Mercer International 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?
Mercer International (FRA:AEZ) 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 Mercer International and its competitors. According to the industry distribution chart, Mercer International ranks #999999 out of 180 companies in the Forest Products industry.
Is Mercer International's Interest Coverage too high?
Mercer International's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Mercer International ranks #999999 out of 180 companies in the Forest Products industry, which is in the bottom quartile relative to peers. Overall, Mercer International has a GF Score™ of 38/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Mercer International's Interest Coverage compare to ITP and SLVM?
According to the Forest Products industry distribution chart, Mercer International ranks #999999 out of 180 companies for Interest Coverage. This places Mercer International in the lower half of its industry. The industry median Interest Coverage is 4.12. 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 Forest Products company?
The median Interest Coverage among Forest Products companies is 4.12, based on 180 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 Mercer International and its competitors. For the Forest Products industry, the median Interest Coverage is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercer International'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 Mercer International stock overvalued right now?
Based on GuruFocus' analysis, Mercer International (FRA:AEZ) is currently considered Possible Value Trap. The stock's GF Value™ is €5.39, compared to a current price of €0.58 — trading 89.2% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Mercer International's overall GF Score™ is 38/100 with 6 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 Mercer International (FRA:AEZ), 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 Mercer International (FRA:AEZ) Overvalued in 2026?
Based on GuruFocus' analysis, Mercer International stock appears to be undervalued.
The current stock price of €0.58 is trading 89.2% below its estimated GF Value™ of €5.39.
GuruFocus considers Mercer International to be Possible Value Trap.
Key valuation signals for FRA:AEZ:
Interest Coverage: 0 (At Loss)
GF Value™: €5.39 vs. price of €0.58 (89.2% below fair value)
No single metric tells the full story. See the FRA:AEZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercer International Inc is a forest products company with two reportable operating segments in pulp and solid wood. The pulp segment consists of the manufacture, sale, and distribution of pulp, electricity, and chemicals. The company has a geographical presence in the USA, Germany, China, and Other countries, where the maximum of revenue is generated from the China. The majority of the revenue is generated from the Pulp segment.
38GF Score
Get the complete analysis for FRA:AEZ
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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