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Fonterra Co-operative GroupFRA:X4I 67 Interest Coverage is 12.02 as of Jan. 2026, which is 293% above its 10-year median of 3.06. GuruFocus rates FRA:X4I with a GF Score™ of 67/100 and a GF Value™ of €1.88. The stock has 5 warning signs investors should review. Among 1,514 Consumer Packaged Goods companies, Fonterra Co-operative Group ranks worse than 51.39% 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. Fonterra Co-operative Group's
Operating Income
for the
six
months ended in Jan. 2026 was €521 Mil. Fonterra Co-operative Group's Interest Expense for the
six
months ended in Jan. 2026 was €-43 Mil.
Fonterra Co-operative Group's interest coverage for the quarter that ended in Jan. 2026 was 12.02.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Fonterra Co-operative Group's Interest Coverage or its related term are showing as below:
FRA:X4I'
s Interest Coverage Range Over the Past 10 Years
Min: 1.93 Med: 3.06 Max: 8.1
Current: 8.1
FRA:X4I's Interest Coverage is ranked worse than 51.39% of 1514
companies
in the Consumer Packaged Goods industry
Industry Median: 8.64
vs FRA:X4I: 8.10
Fonterra Co-operative Group (FRA:X4I) 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 .
Fonterra Co-operative Group Interest Coverage Related Terms
Fonterra Co-operative Group 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.
Fonterra Co-operative Group Interest Coverage Chart
FRA:X4I vs KHC, GIS, HRL: Interest Coverage Comparison
For the Packaged Foods subindustry, Fonterra Co-operative Group'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.
Fonterra Co-operative Group Interest Coverage vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Fonterra Co-operative Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Fonterra Co-operative Group's Interest Coverage falls into.
Fonterra Co-operative Group 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.
Fonterra Co-operative Group (FRA:X4I) has a Interest Coverage of 12.02 as of Jan. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Fonterra Co-operative Group and its competitors. This is 293% above median its historical median of 3.06. Over the past decade, Fonterra Co-operative Group's Interest Coverage has ranged from 1.93 to 8.10. According to the industry distribution chart, Fonterra Co-operative Group ranks #778 out of 1514 companies in the Consumer Packaged Goods industry, placing it in the top 51.4%.
Is Fonterra Co-operative Group's Interest Coverage too high?
Fonterra Co-operative Group's current Interest Coverage of 12.02 is 293% above median its 10-year median of 3.06. Over the past 10 years, this metric has ranged from a low of 1.93 to a high of 8.10. The Consumer Packaged Goods industry median Interest Coverage is 8.64. Fonterra Co-operative Group's value of 12.02 is 39.1% above this industry median. Based on the distribution chart, Fonterra Co-operative Group ranks #778 out of 1514 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Fonterra Co-operative Group has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Fonterra Co-operative Group's Interest Coverage compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Fonterra Co-operative Group ranks #778 out of 1514 companies for Interest Coverage. This places Fonterra Co-operative Group in the lower half of its industry. The industry median Interest Coverage is 8.64. Fonterra Co-operative Group's value of 12.02 is 39.1% above this benchmark. Historically, Fonterra Co-operative Group's own Interest Coverage has ranged from 1.93 to 8.10 over the past decade. While the company's 10-year median is 3.06 vs. the industry median of 8.64, Fonterra Co-operative Group 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 Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.64, based on 1,514 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. Fonterra Co-operative Group's current Interest Coverage of 12.02 is 39.1% 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 Fonterra Co-operative Group and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fonterra Co-operative Group's current Interest Coverage is 12.02, which is 293% above median its own 10-year median of 3.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fonterra Co-operative Group stock overvalued right now?
Fonterra Co-operative Group (FRA:X4I) has a current Interest Coverage of 12.02. The stock's GF Value™ is €1.88, compared to a current price of €2.71 — trading 43.9% above its estimated fair value. The current Interest Coverage is 12.02, which is 293% above median its 10-year median of 3.06 and 39.1% above the Consumer Packaged Goods industry median of 8.64. Fonterra Co-operative Group's overall GF Score™ is 67/100 with 5 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 Fonterra Co-operative Group (FRA:X4I), the current Interest Coverage is 12.02 as of Jan. 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 Fonterra Co-operative Group (FRA:X4I) Overvalued in 2026?
Based on GuruFocus' analysis, Fonterra Co-operative Group stock appears to be overvalued.
The current stock price of €2.71 is trading 43.9% above its estimated GF Value™ of €1.88.
Key valuation signals for FRA:X4I:
Interest Coverage: 12.02 (293% above median its 10-year median of 3.06)
GF Value™: €1.88 vs. price of €2.71 (43.9% above fair value)
Industry Position: 39.1% above the Consumer Packaged Goods median (#778 of 1514)
No single metric tells the full story. See the FRA:X4I stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fonterra Co-operative Group Ltd operates predominantly in the international dairy industry. The company is involved in the collection, manufacture, and sale of milk and milk-derived products through its ingredients, Consumer and Foodservice channels. The company's reportable segments are Global Markets, Greater China, and Core Operations and the majority of the revenue is generated from its core operations segment. Its primary geographic markets is Asia, China, Australia, New Zealand, the United States, and the Rest of the world.
67GF Score
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