Silgan Holdings (FRA:SL3) Interest Coverage: 3.27 (As of Mar. 2026) — 10% Below Median


FRA:SL3 Silgan Holdings Inc FRA:SL3
78 GF Score
Price €39.40
GF Value €43.58
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Silgan Holdings Interest Coverage?

Silgan Holdings FRA:SL3 +1.03% 78 Interest Coverage is 3.27 as of Mar. 2026, which is 10% below its 10-year median of 3.63. GuruFocus rates FRA:SL3 with a GF Score™ of 78/100 and a GF Value™ of €43.58 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 316 Packaging & Containers companies, Silgan Holdings ranks worse than 64.87% 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. Silgan Holdings's Operating Income for the three months ended in Mar. 2026 was €117 Mil. Silgan Holdings's Interest Expense for the three months ended in Mar. 2026 was €-36 Mil. Silgan Holdings's interest coverage for the quarter that ended in Mar. 2026 was 3.27. The higher the ratio, the stronger the company's financial strength is.

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

FRA:SL3' s Interest Coverage Range Over the Past 10 Years
Min: 2.99   Med: 3.63   Max: 5.45
Current: 3.47


FRA:SL3's Interest Coverage is ranked worse than
64.87% of 316 companies
in the Packaging & Containers industry
Industry Median: 6.055 vs FRA:SL3: 3.47

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


Silgan Holdings  (FRA:SL3) 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 .


Silgan Holdings Interest Coverage Related Terms


Silgan Holdings Interest Coverage Historical Data

* Premium members only.

The historical data trend for Silgan Holdings'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.

Silgan Holdings Interest Coverage Chart

Silgan Holdings 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 5.45 5.35 3.48 3.45 3.48

Silgan Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 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 3.30 3.64 4.10 2.82 3.27

FRA:SL3 vs REYN, GPK, GEF: Interest Coverage Comparison

For the Packaging & Containers subindustry, Silgan 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.


Silgan Holdings Interest Coverage vs Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Silgan Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Silgan Holdings's Interest Coverage falls into.


FRA:SL3
78GF Score
Silgan Holdings Inc FRA:SL3
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Silgan 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:

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.

Silgan Holdings'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, Silgan Holdings's Interest Expense was €-162 Mil. Its Operating Income was €562 Mil. And its Long-Term Debt & Capital Lease Obligation was €3,173 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*562.253/-161.718
=3.48

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

Here, for the three months ended in Mar. 2026, Silgan Holdings's Interest Expense was €-36 Mil. Its Operating Income was €117 Mil. And its Long-Term Debt & Capital Lease Obligation was €3,176 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*117.33/-35.839
=3.27

* 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 3.27 mean?
Silgan Holdings (FRA:SL3) has a Interest Coverage of 3.27 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Silgan Holdings and its competitors. This is 10% below median its historical median of 3.63. Over the past decade, Silgan Holdings' Interest Coverage has ranged from 2.99 to 5.45. According to the industry distribution chart, Silgan Holdings ranks #205 out of 316 companies in the Packaging & Containers industry, placing it in the top 64.9%.
Is Silgan Holdings' Interest Coverage too high?
Silgan Holdings' current Interest Coverage of 3.27 is 10% below median its 10-year median of 3.63. Over the past 10 years, this metric has ranged from a low of 2.99 to a high of 5.45. The Packaging & Containers industry median Interest Coverage is 6.06. Silgan Holdings' value of 3.27 is 46% below this industry median. Based on the distribution chart, Silgan Holdings ranks #205 out of 316 companies in the Packaging & Containers industry, which is below the industry midpoint. Overall, Silgan Holdings has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Silgan Holdings' Interest Coverage compare to REYN and GPK?
According to the Packaging & Containers industry distribution chart, Silgan Holdings ranks #205 out of 316 companies for Interest Coverage. This places Silgan Holdings in the lower half of its industry. The industry median Interest Coverage is 6.06. Silgan Holdings' value of 3.27 is 46% below this benchmark. Historically, Silgan Holdings' own Interest Coverage has ranged from 2.99 to 5.45 over the past decade. While the company's 10-year median is 3.63 vs. the industry median of 6.06, Silgan 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 Packaging & Containers company?
The median Interest Coverage among Packaging & Containers companies is 6.06, based on 316 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. Silgan Holdings's current Interest Coverage of 3.27 is 46% 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 Silgan Holdings and its competitors. For the Packaging & Containers industry, the median Interest Coverage is 6.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Silgan Holdings's current Interest Coverage is 3.27, which is 10% below median its own 10-year median of 3.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Silgan Holdings stock overvalued right now?
Based on GuruFocus' analysis, Silgan Holdings (FRA:SL3) is currently considered Modestly Undervalued. The stock's GF Value™ is €43.58, compared to a current price of €39.40 — trading 9.6% below its estimated fair value. The current Interest Coverage is 3.27, which is 10% below median its 10-year median of 3.63 and 46% below the Packaging & Containers industry median of 6.06. Silgan Holdings' overall GF Score™ is 78/100 with 2 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 Silgan Holdings (FRA:SL3), the current Interest Coverage is 3.27 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 Silgan Holdings (FRA:SL3) Overvalued in 2026?

Based on GuruFocus' analysis, Silgan Holdings stock appears to be undervalued. The current stock price of €39.40 is trading 9.6% below its estimated GF Value™ of €43.58. GuruFocus considers Silgan Holdings to be Modestly Undervalued.

Key valuation signals for FRA:SL3:

  • Interest Coverage: 3.27 (10% below median its 10-year median of 3.63)
  • GF Value™: €43.58 vs. price of €39.40 (9.6% below fair value)
  • GF Score™: 78/100 with 2 warning signs
  • Industry Position: 46% below the Packaging & Containers median (#205 of 316)

No single metric tells the full story. See the FRA:SL3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Silgan Holdings Business Description

Other Exchanges SLGN:USA
Address 601 Merritt 7, Norwalk, CT, USA, 06851
Silgan Holdings Inc is a manufacturer of sustainable rigid packaging solutions for the world's essential consumer goods products. Its products include: dispensing and specialty closures for fragrance and beauty, food, beverage, personal and health care, home care and lawn and garden products; steel and aluminum containers for pet and human food and general line products; and custom designed plastic containers for pet and human food, consumer health and pharmaceutical, personal care, home care, lawn and garden and automotive products.
78GF Score

Get the complete analysis for FRA:SL3

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

€39.40
Price
€43.58
GF Value