SHW AG (HAM:SW10) Interest Coverage: 1.54 (As of Dec. 2025) — 79% Below Median


HAM:SW10 SHW AG HAM:SW10
55 GF Score
Price €6.50
GF Value €12.02
Valuation Significantly Undervalued
! 4 Warning Signs
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What is SHW AG Interest Coverage?

SHW AG HAM:SW10 55 Interest Coverage is 1.54 as of Dec. 2025, which is 79% below its 10-year median of 7.23. GuruFocus rates HAM:SW10 with a GF Score™ of 55/100 and a GF Value™ of €12.02 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,066 Vehicles & Parts companies, SHW AG ranks worse than 87.05% 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. SHW AG's Operating Income for the six months ended in Dec. 2025 was €14.0 Mil. SHW AG's Interest Expense for the six months ended in Dec. 2025 was €-9.1 Mil. SHW AG's interest coverage for the quarter that ended in Dec. 2025 was 1.54. The higher the ratio, the stronger the company's financial strength is.

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

HAM:SW10' s Interest Coverage Range Over the Past 10 Years
Min: 0.7   Med: 7.23   Max: 14.21
Current: 1.54


HAM:SW10's Interest Coverage is ranked worse than
87.05% of 1066 companies
in the Vehicles & Parts industry
Industry Median: 8.435 vs HAM:SW10: 1.54

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


SHW AG  (HAM:SW10) 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 .


SHW AG Interest Coverage Related Terms


SHW AG Interest Coverage Historical Data

* Premium members only.

The historical data trend for SHW AG'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.

SHW AG Interest Coverage Chart

SHW AG 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 0.00 0.00 0.72 0.70 1.54

SHW AG Semi-Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 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 0.00 0.00 0.72 0.70 1.54

HAM:SW10 vs ORLY, AZO, GPC: Interest Coverage Comparison

For the Auto Parts subindustry, SHW AG'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.


SHW AG Interest Coverage vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, SHW AG's Interest Coverage distribution charts can be found below:

* The bar in red indicates where SHW AG's Interest Coverage falls into.


HAM:SW10
55GF Score
SHW AG HAM:SW10
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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SHW AG 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.

SHW AG'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, SHW AG's Interest Expense was €-9.1 Mil. Its Operating Income was €14.0 Mil. And its Long-Term Debt & Capital Lease Obligation was €117.6 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*14.007/-9.089
=1.54

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

Here, for the six months ended in Dec. 2025, SHW AG's Interest Expense was €-9.1 Mil. Its Operating Income was €14.0 Mil. And its Long-Term Debt & Capital Lease Obligation was €117.6 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*14.007/-9.089
=1.54

* 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 1.54 mean?
SHW AG (HAM:SW10) has a Interest Coverage of 1.54 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on SHW AG and its competitors. This is 79% below median its historical median of 7.23. Over the past decade, SHW AG's Interest Coverage has ranged from 0.70 to 14.21. According to the industry distribution chart, SHW AG ranks #928 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 87.1%.
Is SHW AG's Interest Coverage too high?
SHW AG's current Interest Coverage of 1.54 is 79% below median its 10-year median of 7.23. Over the past 10 years, this metric has ranged from a low of 0.70 to a high of 14.21. The Vehicles & Parts industry median Interest Coverage is 8.44. SHW AG's value of 1.54 is 81.7% below this industry median. Based on the distribution chart, SHW AG ranks #928 out of 1066 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, SHW AG has a GF Score™ of 55/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SHW AG's Interest Coverage compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, SHW AG ranks #928 out of 1066 companies for Interest Coverage. This places SHW AG in the lower half of its industry. The industry median Interest Coverage is 8.44. SHW AG's value of 1.54 is 81.7% below this benchmark. Historically, SHW AG's own Interest Coverage has ranged from 0.70 to 14.21 over the past decade. While the company's 10-year median is 7.23 vs. the industry median of 8.44, SHW AG 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.44, based on 1,066 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. SHW AG's current Interest Coverage of 1.54 is 81.7% 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 SHW AG and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SHW AG's current Interest Coverage is 1.54, which is 79% below median its own 10-year median of 7.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SHW AG stock overvalued right now?
Based on GuruFocus' analysis, SHW AG (HAM:SW10) is currently considered Significantly Undervalued. The stock's GF Value™ is €12.02, compared to a current price of €6.50 — trading 45.9% below its estimated fair value. The current Interest Coverage is 1.54, which is 79% below median its 10-year median of 7.23 and 81.7% below the Vehicles & Parts industry median of 8.44. SHW AG's overall GF Score™ is 55/100 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 SHW AG (HAM:SW10), the current Interest Coverage is 1.54 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 SHW AG (HAM:SW10) Overvalued in 2026?

Based on GuruFocus' analysis, SHW AG stock appears to be undervalued. The current stock price of €6.50 is trading 45.9% below its estimated GF Value™ of €12.02. GuruFocus considers SHW AG to be Significantly Undervalued.

Key valuation signals for HAM:SW10:

  • Interest Coverage: 1.54 (79% below median its 10-year median of 7.23)
  • GF Value™: €12.02 vs. price of €6.50 (45.9% below fair value)
  • GF Score™: 55/100 with 4 warning signs
  • Industry Position: 81.7% below the Vehicles & Parts median (#928 of 1066)

No single metric tells the full story. See the HAM:SW10 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


SHW AG Business Description

Address Wilhelmstrasse 111, Aalen, BW, DEU, 73433
SHW AG is a Germany-based developer and manufacturer of a product that contributes to a reduction of fuel consumption and consequently CO2 emissions in the vehicle industry. The company has two operating segments, Pumps, and Engine Components and Brake Disc segment. In its Pumps and engine components business segment SHW develops and produces engine and transmission components for the various area of application. In the Brake Discs business segment, it develops and produces Monobloc, ventilated, cast iron brake discs as well as lightweight brake discs. The company generates the majority of its revenue from the Pumps and engine components business segment.
55GF Score

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

€6.50
Price
€12.02
GF Value