Hermes InternationalHESAF +0.80%91 Interest Coverage is 113.76 as of Dec. 2025, which is 9% above its 10-year median of 104.20. GuruFocus rates HESAF with a GF Score™ of 91/100 and a GF Value™ of $2,947.50 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 828 Retail - Cyclical companies, Hermes International ranks better than 89.61% 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. Hermes International's
Operating Income
for the
six
months ended in Dec. 2025 was $3,863 Mil. Hermes International's Interest Expense for the
six
months ended in Dec. 2025 was $-34 Mil.
Hermes International's interest coverage for the quarter that ended in Dec. 2025 was 113.76.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Hermes International SA has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Hermes International's Interest Coverage or its related term are showing as below:
HESAF'
s Interest Coverage Range Over the Past 10 Years
Min: 48.13 Med: 104.2 Max: 1151.13
Current: 121.73
HESAF's Interest Coverage is ranked better than 89.61% of 828
companies
in the Retail - Cyclical industry
Industry Median: 7.915
vs HESAF: 121.73
Hermes International (OTCPK:HESAF) 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 .
Hermes International Interest Coverage Related Terms
Hermes International Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hermes International'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.
For the Luxury Goods subindustry, Hermes International'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.
Hermes International Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Hermes International's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hermes International's Interest Coverage falls into.
Hermes International 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.
Hermes International (HESAF) has a Interest Coverage of 113.76 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hermes International and its competitors. This is near median its historical median of 104.20. Over the past decade, Hermes International's Interest Coverage has ranged from 48.13 to 1,151.13. According to the industry distribution chart, Hermes International ranks #86 out of 828 companies in the Retail - Cyclical industry, placing it in the top 10.4%.
Is Hermes International's Interest Coverage too high?
Hermes International's current Interest Coverage of 113.76 is near median its 10-year median of 104.20. Over the past 10 years, this metric has ranged from a low of 48.13 to a high of 1,151.13. The Retail - Cyclical industry median Interest Coverage is 7.92. Hermes International's value of 113.76 is 1337.3% above this industry median. Based on the distribution chart, Hermes International ranks #86 out of 828 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Hermes International has a GF Score™ of 91/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hermes International's Interest Coverage compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Hermes International ranks #86 out of 828 companies for Interest Coverage. This places Hermes International in the top 10% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 7.92. Hermes International's value of 113.76 is 1337.3% above this benchmark. Historically, Hermes International's own Interest Coverage has ranged from 48.13 to 1,151.13 over the past decade. While the company's 10-year median is 104.20 vs. the industry median of 7.92, Hermes International 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 Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.92, based on 828 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. Hermes International's current Interest Coverage of 113.76 is 1337.3% 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 Hermes International and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hermes International's current Interest Coverage is 113.76, which is near median its own 10-year median of 104.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hermes International stock overvalued right now?
Based on GuruFocus' analysis, Hermes International (HESAF) is currently considered Significantly Undervalued. The stock's GF Value™ is $2,947.50, compared to a current price of $1,845.19 — trading 37.4% below its estimated fair value. The current Interest Coverage is 113.76, which is near median its 10-year median of 104.20 and 1337.3% above the Retail - Cyclical industry median of 7.92. Hermes International's overall GF Score™ is 91/100 with 1 warning sign 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 Hermes International (HESAF), the current Interest Coverage is 113.76 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 Hermes International (HESAF) Overvalued in 2026?
Based on GuruFocus' analysis, Hermes International stock appears to be undervalued.
The current stock price of $1,845.19 is trading 37.4% below its estimated GF Value™ of $2,947.50.
GuruFocus considers Hermes International to be Significantly Undervalued.
Key valuation signals for HESAF:
Interest Coverage: 113.76 (near median its 10-year median of 104.20)
GF Value™: $2,947.50 vs. price of $1,845.19 (37.4% below fair value)
Industry Position: 1337.3% above the Retail - Cyclical median (#86 of 828)
No single metric tells the full story. See the HESAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hermès is over 180-year-old family controlled luxury goods company best known for its Birkin and Kelly bags. Its biggest segments are leather goods and saddlery, accounting for over 40% of revenue; clothes and accessories (28% of sales); silk and textiles (6%); and other products such as perfumes, watches, jewellery, and home furnishings. Hermès has about 300 stores globally.
91GF Score
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