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. Lucara Diamond's
Operating Income
for the
three
months ended in Mar. 2026 was €-8.8 Mil. Lucara Diamond's Interest Expense for the
three
months ended in Mar. 2026 was €-0.8 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 Lucara Diamond's Interest Coverage or its related term are showing as below:
FRA:LKT'
s Interest Coverage Range Over the Past 10 Years
Min: 4.67 Med: 14.24 Max: 109.37
Current: 4.67
FRA:LKT's Interest Coverage is ranked worse than 89.9% of 1317
companies
in the Metals & Mining industry
Industry Median: No Debt
vs FRA:LKT: 4.67
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 .
Lucara Diamond Interest Coverage Related Terms
Lucara Diamond Interest Coverage Historical Data
* Premium members only.
The historical data trend for Lucara Diamond'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.
For the Other Precious Metals & Mining subindustry, Lucara Diamond'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.
Lucara Diamond Interest Coverage vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Lucara Diamond's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Lucara Diamond'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:
Lucara Diamond 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?
Lucara Diamond (FRA:LKT) 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 Lucara Diamond and its competitors. Over the past decade, Lucara Diamond's Interest Coverage has ranged from 4.67 to 109.37. According to the industry distribution chart, Lucara Diamond ranks #1184 out of 1317 companies in the Metals & Mining industry, placing it in the top 89.9%.
Is Lucara Diamond's Interest Coverage too high?
Lucara Diamond's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 4.67 to a high of 109.37. Based on the distribution chart, Lucara Diamond ranks #1184 out of 1317 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Lucara Diamond has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Lucara Diamond's Interest Coverage compare to HL?
According to the Metals & Mining industry distribution chart, Lucara Diamond ranks #1184 out of 1317 companies for Interest Coverage. This places Lucara Diamond in the lower half of its industry. The industry median Interest Coverage is 10,000.00. Historically, Lucara Diamond's own Interest Coverage has ranged from 4.67 to 109.37 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 Metals & Mining company?
The median Interest Coverage among Metals & Mining companies is 10,000.00, based on 1,317 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 Lucara Diamond and its competitors. For the Metals & Mining industry, the median Interest Coverage is 10,000.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lucara Diamond'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 Lucara Diamond stock overvalued right now?
Based on GuruFocus' analysis, Lucara Diamond (FRA:LKT) is currently considered Possible Value Trap. The stock's GF Value™ is €0.15, compared to a current price of €0.09 — trading 40.9% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Lucara Diamond's overall GF Score™ is 59/100 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 Lucara Diamond (FRA:LKT), 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 Lucara Diamond (FRA:LKT) Overvalued in 2026?
Based on GuruFocus' analysis, Lucara Diamond stock appears to be undervalued.
The current stock price of €0.09 is trading 40.9% below its estimated GF Value™ of €0.15.
GuruFocus considers Lucara Diamond to be Possible Value Trap.
Key valuation signals for FRA:LKT:
Interest Coverage: 0 (At Loss)
GF Value™: €0.15 vs. price of €0.09 (40.9% below fair value)
No single metric tells the full story. See the FRA:LKT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lucara Diamond Corp is a diamond mining company focused on the development and operation of its Karowe Mine located in Botswana. The company has one operating segment: Karowe Mine, from which it derives revenue.
59GF Score
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