Hammond Manufacturing CoHMFAF -1.37%89 Interest Coverage is 9.75 as of Mar. 2026, which is 38% above its 10-year median of 7.05. GuruFocus rates HMFAF with a GF Score™ of 89/100 and a GF Value™ of $8.18 (Modestly Overvalued). Among 2,325 Industrial Products companies, Hammond Manufacturing Co ranks worse than 65.98% 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. Hammond Manufacturing Co's
Operating Income
for the
three
months ended in Mar. 2026 was $5.7 Mil. Hammond Manufacturing Co's Interest Expense for the
three
months ended in Mar. 2026 was $-0.6 Mil.
Hammond Manufacturing Co's interest coverage for the quarter that ended in Mar. 2026 was 9.75.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Hammond Manufacturing Co's Interest Coverage or its related term are showing as below:
HMFAF'
s Interest Coverage Range Over the Past 10 Years
Min: 2.72 Med: 7.05 Max: 10.04
Current: 7.11
HMFAF's Interest Coverage is ranked worse than 65.98% of 2325
companies
in the Industrial Products industry
Industry Median: 14.8
vs HMFAF: 7.11
Hammond Manufacturing Co (OTCPK:HMFAF) 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 .
Hammond Manufacturing Co Interest Coverage Related Terms
Hammond Manufacturing Co 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.
For the Electrical Equipment & Parts subindustry, Hammond Manufacturing Co'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.
Hammond Manufacturing Co Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hammond Manufacturing Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hammond Manufacturing Co's Interest Coverage falls into.
Hammond Manufacturing Co 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.
Hammond Manufacturing Co (HMFAF) has a Interest Coverage of 9.75 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hammond Manufacturing Co and its competitors. This is 38% above median its historical median of 7.05. Over the past decade, Hammond Manufacturing Co's Interest Coverage has ranged from 2.72 to 10.04. According to the industry distribution chart, Hammond Manufacturing Co ranks #1534 out of 2325 companies in the Industrial Products industry, placing it in the top 66%.
Is Hammond Manufacturing Co's Interest Coverage too high?
Hammond Manufacturing Co's current Interest Coverage of 9.75 is 38% above median its 10-year median of 7.05. Over the past 10 years, this metric has ranged from a low of 2.72 to a high of 10.04. The Industrial Products industry median Interest Coverage is 14.80. Hammond Manufacturing Co's value of 9.75 is 34.1% below this industry median. Based on the distribution chart, Hammond Manufacturing Co ranks #1534 out of 2325 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Hammond Manufacturing Co has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hammond Manufacturing Co's Interest Coverage compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hammond Manufacturing Co ranks #1534 out of 2325 companies for Interest Coverage. This places Hammond Manufacturing Co in the lower half of its industry. The industry median Interest Coverage is 14.80. Hammond Manufacturing Co's value of 9.75 is 34.1% below this benchmark. Historically, Hammond Manufacturing Co's own Interest Coverage has ranged from 2.72 to 10.04 over the past decade. While the company's 10-year median is 7.05 vs. the industry median of 14.80, Hammond Manufacturing Co 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 an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.80, based on 2,325 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. Hammond Manufacturing Co's current Interest Coverage of 9.75 is 34.1% 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 Hammond Manufacturing Co and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hammond Manufacturing Co's current Interest Coverage is 9.75, which is 38% above median its own 10-year median of 7.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hammond Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Hammond Manufacturing Co (HMFAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $8.18, compared to a current price of $10.80 — trading 32% above its estimated fair value. The current Interest Coverage is 9.75, which is 38% above median its 10-year median of 7.05 and 34.1% below the Industrial Products industry median of 14.80. Hammond Manufacturing Co's overall GF Score™ is 89/100. 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 Hammond Manufacturing Co (HMFAF), the current Interest Coverage is 9.75 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 Hammond Manufacturing Co (HMFAF) Overvalued in 2026?
Based on GuruFocus' analysis, Hammond Manufacturing Co stock appears to be overvalued.
The current stock price of $10.80 is trading 32% above its estimated GF Value™ of $8.18.
GuruFocus considers Hammond Manufacturing Co to be Modestly Overvalued.
Key valuation signals for HMFAF:
Interest Coverage: 9.75 (38% above median its 10-year median of 7.05)
GF Value™: $8.18 vs. price of $10.80 (32% above fair value)
Industry Position: 34.1% below the Industrial Products median (#1534 of 2325)
No single metric tells the full story. See the HMFAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hammond Manufacturing Co Ltd is involved in the design, manufacture and sale of electrical and electronic components. Its geographical segments are Canada, the United States, and other countries, of which key revenue is derived from the United States. The company operates in one operating segment, electrical and electronic components. The company generates revenue through the manufacturing and sales of industrial enclosures, electronic enclosures, racks and cabinets, transformers and other products. Its manufactured products include electrical and electronic enclosures, racks and cabinets, power bars, and electronic (low-voltage) transformers.
89GF Score
Get the complete analysis for HMFAF
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