Grafton GroupGROUF Interest Coverage is 7.11 as of Dec. 2025, which is 44% below its 10-year median of 12.66. The stock has 3 warning signs investors should review.
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. Grafton Group's
Operating Income
for the
six
months ended in Dec. 2025 was $111 Mil. Grafton Group's Interest Expense for the
six
months ended in Dec. 2025 was $-16 Mil.
Grafton Group's interest coverage for the quarter that ended in Dec. 2025 was 7.11.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Grafton Group's Interest Coverage or its related term are showing as below:
GROUF'
s Interest Coverage Range Over the Past 10 Years
Min: 4.79 Med: 12.66 Max: 30.93
Current: 12.1
GROUF's Interest Coverage is not ranked
in the Industrial Distribution industry.
Industry Median: 6.22
vs GROUF: 12.10
Grafton Group (OTCPK:GROUF) 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 .
Grafton Group Interest Coverage Related Terms
Grafton Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Grafton Group'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.
GROUF vs FAST, GWW, FERG: Interest Coverage Comparison
For the Industrial Distribution subindustry, Grafton 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.
Grafton Group Interest Coverage vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Grafton Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Grafton Group'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:
* 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.
Grafton Group (GROUF) has a Interest Coverage of 7.11 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Grafton Group and its competitors. This is 44% below median its historical median of 12.66. Over the past decade, Grafton Group's Interest Coverage has ranged from 4.79 to 30.93.
Is Grafton Group's Interest Coverage too high?
Grafton Group's current Interest Coverage of 7.11 is 44% below median its 10-year median of 12.66. Over the past 10 years, this metric has ranged from a low of 4.79 to a high of 30.93. The Industrial Distribution industry median Interest Coverage is 6.22. Grafton Group's value of 7.11 is 14.3% above this industry median.
How does Grafton Group's Interest Coverage compare to FAST and GWW?
Grafton Group's Interest Coverage of 7.11 can be compared against companies in the Industrial Distribution industry. The industry median Interest Coverage is 6.22. Grafton Group's value of 7.11 is 14.3% above this benchmark. Historically, Grafton Group's own Interest Coverage has ranged from 4.79 to 30.93 over the past decade. While the company's 10-year median is 12.66 vs. the industry median of 6.22, Grafton 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 an Industrial Distribution company?
The median Interest Coverage among Industrial Distribution companies is 6.22, based on 133 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. Grafton Group's current Interest Coverage of 7.11 is 14.3% 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 Grafton Group and its competitors. For the Industrial Distribution industry, the median Interest Coverage is 6.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grafton Group's current Interest Coverage is 7.11, which is 44% below median its own 10-year median of 12.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grafton Group stock overvalued right now?
Based on GuruFocus' analysis, Grafton Group (GROUF) is currently considered Modestly Overvalued. The stock's GF Value™ is $9.59, compared to a current price of $11.05 — trading 15.2% above its estimated fair value. The current Interest Coverage is 7.11, which is 44% below median its 10-year median of 12.66 and 14.3% above the Industrial Distribution industry median of 6.22. 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 Grafton Group (GROUF), the current Interest Coverage is 7.11 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.
Grafton Group PLC is a distributor of building materials that operates in three segments; The Distribution segment is into the distribution of building and plumbing materials to professional tradespeople engaged in residential repair, maintenance, and improvement projects and also in residential and other new build construction, The Retailing segment operates DIY and home improvement business from a network of stores that supply mainly retail customers with wide products for DIY and for the home and garden, and The Manufacturing segment is into the manufacture of dry mortar in Great Britain. The company also operates in residential and other new build construction. Geographically, the company generates over half of its revenue from the United Kingdom.
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