Rapala VMC (FRA:RAP) Interest Coverage: 0 (At Loss) (As of Dec. 2025)


FRA:RAP Rapala VMC Corp FRA:RAP
59 GF Score
Price €1.09
GF Value €2.18
Valuation Significantly Undervalued
! 4 Warning Signs
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What is Rapala VMC Interest Coverage?

Rapala VMC FRA:RAP +0.46% 59 Interest Coverage is 0 (At Loss) as of Dec. 2025. GuruFocus rates FRA:RAP with a GF Score™ of 59/100 and a GF Value™ of €2.18 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 609 Travel & Leisure companies, Rapala VMC ranks worse than 85.55% 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. Rapala VMC's Operating Income for the six months ended in Dec. 2025 was €-0.7 Mil. Rapala VMC's Interest Expense for the six months ended in Dec. 2025 was €-2.6 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 Rapala VMC's Interest Coverage or its related term are showing as below:

FRA:RAP' s Interest Coverage Range Over the Past 10 Years
Min: 0.38   Med: 3.82   Max: 14.55
Current: 1.31


FRA:RAP's Interest Coverage is ranked worse than
85.55% of 609 companies
in the Travel & Leisure industry
Industry Median: 5.35 vs FRA:RAP: 1.31

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


Rapala VMC  (FRA:RAP) 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 .


Rapala VMC Interest Coverage Related Terms


Rapala VMC Interest Coverage Historical Data

* Premium members only.

The historical data trend for Rapala VMC'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.

Rapala VMC Interest Coverage Chart

Rapala VMC Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.55 3.68 0.47 0.38 1.34

Rapala VMC Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 0.00 1.07 0.00 2.49 0.00

FRA:RAP vs AS, HAS, LTH: Interest Coverage Comparison

For the Leisure subindustry, Rapala VMC'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.


Rapala VMC Interest Coverage vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Rapala VMC's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Rapala VMC's Interest Coverage falls into.


FRA:RAP
59GF Score
Rapala VMC Corp FRA:RAP
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Rapala VMC 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.

Rapala VMC's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Rapala VMC's Interest Expense was €-6.1 Mil. Its Operating Income was €8.2 Mil. And its Long-Term Debt & Capital Lease Obligation was €69.1 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*8.2/-6.1
=1.34

Rapala VMC's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Rapala VMC's Interest Expense was €-2.6 Mil. Its Operating Income was €-0.7 Mil. And its Long-Term Debt & Capital Lease Obligation was €69.1 Mil.

Rapala VMC 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.

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 0 (At Loss) mean?
Rapala VMC (FRA:RAP) has a Interest Coverage of 0 (At Loss) as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Rapala VMC and its competitors. Over the past decade, Rapala VMC's Interest Coverage has ranged from 0.38 to 14.55. According to the industry distribution chart, Rapala VMC ranks #521 out of 609 companies in the Travel & Leisure industry, placing it in the top 85.6%.
Is Rapala VMC's Interest Coverage too high?
Rapala VMC's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 0.38 to a high of 14.55. Based on the distribution chart, Rapala VMC ranks #521 out of 609 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Rapala VMC has a GF Score™ of 59/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rapala VMC's Interest Coverage compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, Rapala VMC ranks #521 out of 609 companies for Interest Coverage. This places Rapala VMC in the lower half of its industry. The industry median Interest Coverage is 5.35. Historically, Rapala VMC's own Interest Coverage has ranged from 0.38 to 14.55 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 Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 609 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 Rapala VMC and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rapala VMC'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 Rapala VMC stock overvalued right now?
Based on GuruFocus' analysis, Rapala VMC (FRA:RAP) is currently considered Significantly Undervalued. The stock's GF Value™ is €2.18, compared to a current price of €1.09 — trading 50% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Rapala VMC's overall GF Score™ is 59/100 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 Rapala VMC (FRA:RAP), the current Interest Coverage is 0 (At Loss) 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 Rapala VMC (FRA:RAP) Overvalued in 2026?

Based on GuruFocus' analysis, Rapala VMC stock appears to be undervalued. The current stock price of €1.09 is trading 50% below its estimated GF Value™ of €2.18. GuruFocus considers Rapala VMC to be Significantly Undervalued.

Key valuation signals for FRA:RAP:

  • Interest Coverage: 0 (At Loss)
  • GF Value™: €2.18 vs. price of €1.09 (50% below fair value)
  • GF Score™: 59/100 with 4 warning signs

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


Rapala VMC Business Description

Address Makelankatu 87, Helsinki, FIN, 00610
Rapala VMC Corp is a fishing tackle company. It is engaged in the business of manufacturing, sourcing, and distributing mainly fishing tackle equipment, as well as hunting, outdoor, and winter sports equipment. The company's products include fishing lures, treble hooks, fishing-related knives and hooks, etc. The firm markets and sells its products under the Sufix, Mora Ice, Peltonen, Williamson, VMC, Storm, Blue Fox, Rapala, and other brands. Geographically, the company generates maximum revenue from North America, followed by the Nordic regions, Rest of Europe, and the Rest of the World.
59GF Score

Get the complete analysis for FRA:RAP

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

€1.09
Price
€2.18
GF Value