Holland Colours (FRA:HCY) Interest Coverage: 48.21 (As of Mar. 2026) — 40% Below Median


FRA:HCY Holland Colours FRA:HCY
69 GF Score
Price €82.50
GF Value €92.45
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Holland Colours Interest Coverage?

Holland Colours FRA:HCY 69 Interest Coverage is 48.21 as of Mar. 2026, which is 40% below its 10-year median of 80.84. GuruFocus rates FRA:HCY with a GF Score™ of 69/100 and a GF Value™ of €92.45 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,234 Chemicals companies, Holland Colours ranks better than 81.28% 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. Holland Colours's Operating Income for the six months ended in Mar. 2026 was €1.8 Mil. Holland Colours's Interest Expense for the six months ended in Mar. 2026 was €-0.0 Mil. Holland Colours's interest coverage for the quarter that ended in Mar. 2026 was 48.21. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Holland Colours has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Holland Colours's Interest Coverage or its related term are showing as below:

FRA:HCY' s Interest Coverage Range Over the Past 10 Years
Min: 38.72   Med: 80.84   Max: 128
Current: 68.12


FRA:HCY's Interest Coverage is ranked better than
81.28% of 1234 companies
in the Chemicals industry
Industry Median: 10.18 vs FRA:HCY: 68.12

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Holland Colours  (FRA:HCY) 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 .


Holland Colours Interest Coverage Related Terms


Holland Colours Interest Coverage Historical Data

* Premium members only.

The historical data trend for Holland Colours'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.

Holland Colours Interest Coverage Chart

Holland Colours Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 75.72 53.23 51.93 87.11 68.12

Holland Colours Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 35.19 140.47 55.28 94.21 48.21

FRA:HCY vs LIN, SHW, ECL: Interest Coverage Comparison

For the Specialty Chemicals subindustry, Holland Colours'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.


Holland Colours Interest Coverage vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Holland Colours's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Holland Colours's Interest Coverage falls into.


FRA:HCY
69GF Score
Holland Colours FRA:HCY
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Holland Colours 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Holland Colours's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, Holland Colours's Interest Expense was €-0.1 Mil. Its Operating Income was €4.6 Mil. And its Long-Term Debt & Capital Lease Obligation was €0.5 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*4.564/-0.067
=68.12

Holland Colours's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the six months ended in Mar. 2026, Holland Colours's Interest Expense was €-0.0 Mil. Its Operating Income was €1.8 Mil. And its Long-Term Debt & Capital Lease Obligation was €0.5 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*1.832/-0.038
=48.21

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 48.21 mean?
Holland Colours (FRA:HCY) has a Interest Coverage of 48.21 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Holland Colours and its competitors. This is 40% below median its historical median of 80.84. Over the past decade, Holland Colours' Interest Coverage has ranged from 38.72 to 128.00. According to the industry distribution chart, Holland Colours ranks #231 out of 1234 companies in the Chemicals industry, placing it in the top 18.7%.
Is Holland Colours' Interest Coverage too high?
Holland Colours' current Interest Coverage of 48.21 is 40% below median its 10-year median of 80.84. Over the past 10 years, this metric has ranged from a low of 38.72 to a high of 128.00. The Chemicals industry median Interest Coverage is 10.18. Holland Colours' value of 48.21 is 373.6% above this industry median. Based on the distribution chart, Holland Colours ranks #231 out of 1234 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Holland Colours has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Holland Colours' Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, Holland Colours ranks #231 out of 1234 companies for Interest Coverage. This places Holland Colours in the top 19% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 10.18. Holland Colours' value of 48.21 is 373.6% above this benchmark. Historically, Holland Colours' own Interest Coverage has ranged from 38.72 to 128.00 over the past decade. While the company's 10-year median is 80.84 vs. the industry median of 10.18, Holland Colours 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.18, based on 1,234 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. Holland Colours's current Interest Coverage of 48.21 is 373.6% 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 Holland Colours and its competitors. For the Chemicals industry, the median Interest Coverage is 10.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Holland Colours's current Interest Coverage is 48.21, which is 40% below median its own 10-year median of 80.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Holland Colours stock overvalued right now?
Based on GuruFocus' analysis, Holland Colours (FRA:HCY) is currently considered Modestly Undervalued. The stock's GF Value™ is €92.45, compared to a current price of €82.50 — trading 10.8% below its estimated fair value. The current Interest Coverage is 48.21, which is 40% below median its 10-year median of 80.84 and 373.6% above the Chemicals industry median of 10.18. Holland Colours' overall GF Score™ is 69/100 with 4 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 Holland Colours (FRA:HCY), the current Interest Coverage is 48.21 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 Holland Colours (FRA:HCY) Overvalued in 2026?

Based on GuruFocus' analysis, Holland Colours stock appears to be undervalued. The current stock price of €82.50 is trading 10.8% below its estimated GF Value™ of €92.45. GuruFocus considers Holland Colours to be Modestly Undervalued.

Key valuation signals for FRA:HCY:

  • Interest Coverage: 48.21 (40% below median its 10-year median of 80.84)
  • GF Value™: €92.45 vs. price of €82.50 (10.8% below fair value)
  • GF Score™: 69/100 with 4 warning signs
  • Industry Position: 373.6% above the Chemicals median (#231 of 1234)

No single metric tells the full story. See the FRA:HCY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Holland Colours Business Description

Address Halvemaanweg 1, P.O. Box 720, Apeldoorn, GE, NLD, 7323 RW
Holland Colours manufactures, distributes and sells colour concentrates. The company's solutions are TINTMASK, HOLCOBATCH CLASSIC, VISCOBOOST, TASTEGUARD, HOLCOMER THERMOSTRETCH, CIRCSTAB, FASTHEAT, MARKIT, HOLCOPEARL REWHITE, SORT, NATURAL COLLECTION, REVIVE COLOURS, etc. Its markets and key segments are PACKAGING, BUILDING & CONSTRUCTION, COATINGS & SEALANTS, OTHER HIGH-END APPLICATIONS. The company has three segments EMEIA, Americas, and Asia. The company generates majority of revenue from EMEIA.
69GF Score

Get the complete analysis for FRA:HCY

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€82.50
Price
€92.45
GF Value