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. Perennial Energy Holdings's
Operating Income
for the
six
months ended in Dec. 2025 was €9.2 Mil. Perennial Energy Holdings's Interest Expense for the
six
months ended in Dec. 2025 was €-2.9 Mil.
Perennial Energy Holdings's interest coverage for the quarter that ended in Dec. 2025 was 3.15.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Perennial Energy Holdings's Interest Coverage or its related term are showing as below:
FRA:PEZ'
s Interest Coverage Range Over the Past 10 Years
Min: 2.61 Med: 28.07 Max: 79.97
Current: 2.61
FRA:PEZ's Interest Coverage is ranked worse than 68.86% of 456
companies
in the Steel industry
Industry Median: 4.445
vs FRA:PEZ: 2.61
Perennial Energy Holdings (FRA:PEZ) 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 .
Perennial Energy Holdings Interest Coverage Related Terms
Perennial Energy Holdings Interest Coverage Historical Data
* 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:PEZ vs HCC, AMR, METC: Interest Coverage Comparison
For the Coking Coal subindustry, Perennial Energy Holdings'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.
Perennial Energy Holdings Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Perennial Energy Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Perennial Energy Holdings's Interest Coverage falls into.
Perennial Energy Holdings 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:
* 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.
Perennial Energy Holdings (FRA:PEZ) has a Interest Coverage of 3.15 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Perennial Energy Holdings and its competitors. This is 89% below median its historical median of 28.07. Over the past decade, Perennial Energy Holdings' Interest Coverage has ranged from 2.61 to 79.97. According to the industry distribution chart, Perennial Energy Holdings ranks #314 out of 456 companies in the Steel industry, placing it in the top 68.9%.
Is Perennial Energy Holdings' Interest Coverage too high?
Perennial Energy Holdings' current Interest Coverage of 3.15 is 89% below median its 10-year median of 28.07. Over the past 10 years, this metric has ranged from a low of 2.61 to a high of 79.97. The Steel industry median Interest Coverage is 4.45. Perennial Energy Holdings' value of 3.15 is 29.1% below this industry median. Based on the distribution chart, Perennial Energy Holdings ranks #314 out of 456 companies in the Steel industry, which is below the industry midpoint. Overall, Perennial Energy Holdings has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does Perennial Energy Holdings' Interest Coverage compare to HCC and AMR?
According to the Steel industry distribution chart, Perennial Energy Holdings ranks #314 out of 456 companies for Interest Coverage. This places Perennial Energy Holdings in the lower half of its industry. The industry median Interest Coverage is 4.45. Perennial Energy Holdings' value of 3.15 is 29.1% below this benchmark. Historically, Perennial Energy Holdings' own Interest Coverage has ranged from 2.61 to 79.97 over the past decade. While the company's 10-year median is 28.07 vs. the industry median of 4.45, Perennial Energy Holdings 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 Steel company?
The median Interest Coverage among Steel companies is 4.45, based on 456 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. Perennial Energy Holdings's current Interest Coverage of 3.15 is 29.1% 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 Perennial Energy Holdings and its competitors. For the Steel industry, the median Interest Coverage is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perennial Energy Holdings's current Interest Coverage is 3.15, which is 89% below median its own 10-year median of 28.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perennial Energy Holdings stock overvalued right now?
Perennial Energy Holdings (FRA:PEZ) has a current Interest Coverage of 3.15. The stock's GF Value™ is €0.07, compared to a current price of €0.08 — trading 15% above its estimated fair value. The current Interest Coverage is 3.15, which is 89% below median its 10-year median of 28.07 and 29.1% below the Steel industry median of 4.45. Perennial Energy Holdings' overall GF Score™ is 56/100 with 7 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 Perennial Energy Holdings (FRA:PEZ), the current Interest Coverage is 3.15 as of Dec. 2025. 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 Perennial Energy Holdings (FRA:PEZ) Overvalued in 2026?
Based on GuruFocus' analysis, Perennial Energy Holdings stock appears to be overvalued.
The current stock price of €0.08 is trading 15% above its estimated GF Value™ of €0.07.
Key valuation signals for FRA:PEZ:
Interest Coverage: 3.15 (89% below median its 10-year median of 28.07)
GF Value™: €0.07 vs. price of €0.08 (15% above fair value)
Industry Position: 29.1% below the Steel median (#314 of 456)
No single metric tells the full story. See the FRA:PEZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Perennial Energy Holdings Ltd is a coal mining company. Along with its subsidiaries, it is principally engaged in the exploration and mining of coking coal and coal refinery in the People's Republic of China. It operates three underground coal mines, namely, Hongguo Coal Mine, Baogushan Coal Mine, and Xiejiahegou Coal Mine. The company earns revenue from the sale of Clean coking coal, which accounts for the majority of the revenue, Raw coal, Middling coal, Sludge coal, and sales of coalbed methane gas.
56GF Score
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