AECIJSE:AFE +0.49%62 Interest Coverage is 3.38 as of Dec. 2025, which is 24% below its 10-year median of 4.44. GuruFocus rates JSE:AFE with a GF Score™ of 62/100 and a GF Value™ of R90.99 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,234 Chemicals companies, AECI ranks worse than 76.9% 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. AECI's
Operating Income
for the
six
months ended in Dec. 2025 was R831 Mil. AECI's Interest Expense for the
six
months ended in Dec. 2025 was R-246 Mil.
AECI's interest coverage for the quarter that ended in Dec. 2025 was 3.38.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for AECI's Interest Coverage or its related term are showing as below:
JSE:AFE'
s Interest Coverage Range Over the Past 10 Years
Min: 2.39 Med: 4.44 Max: 7.82
Current: 3.18
JSE:AFE's Interest Coverage is ranked worse than 76.9% of 1234
companies
in the Chemicals industry
Industry Median: 10.18
vs JSE:AFE: 3.18
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 .
AECI Interest Coverage Related Terms
AECI Interest Coverage Historical Data
* Premium members only.
The historical data trend for AECI'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.
JSE:AFE vs LIN, SHW, ECL: Interest Coverage Comparison
For the Specialty Chemicals subindustry, AECI'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.
AECI Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, AECI's Interest Coverage distribution charts can be found below:
* The bar in red indicates where AECI'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.
AECI (JSE:AFE) has a Interest Coverage of 3.38 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on AECI and its competitors. This is 24% below median its historical median of 4.44. Over the past decade, AECI's Interest Coverage has ranged from 2.39 to 7.82. According to the industry distribution chart, AECI ranks #949 out of 1234 companies in the Chemicals industry, placing it in the top 76.9%.
Is AECI's Interest Coverage too high?
AECI's current Interest Coverage of 3.38 is 24% below median its 10-year median of 4.44. Over the past 10 years, this metric has ranged from a low of 2.39 to a high of 7.82. The Chemicals industry median Interest Coverage is 10.18. AECI's value of 3.38 is 66.8% below this industry median. Based on the distribution chart, AECI ranks #949 out of 1234 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, AECI has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does AECI's Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, AECI ranks #949 out of 1234 companies for Interest Coverage. This places AECI in the lower half of its industry. The industry median Interest Coverage is 10.18. AECI's value of 3.38 is 66.8% below this benchmark. Historically, AECI's own Interest Coverage has ranged from 2.39 to 7.82 over the past decade. While the company's 10-year median is 4.44 vs. the industry median of 10.18, AECI 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.18, based on 1,234 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. AECI's current Interest Coverage of 3.38 is 66.8% 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 AECI and its competitors. For the Chemicals industry, the median Interest Coverage is 10.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AECI's current Interest Coverage is 3.38, which is 24% below median its own 10-year median of 4.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AECI stock overvalued right now?
Based on GuruFocus' analysis, AECI (JSE:AFE) is currently considered Significantly Overvalued. The stock's GF Value™ is R90.99, compared to a current price of R126.00 — trading 38.5% above its estimated fair value. The current Interest Coverage is 3.38, which is 24% below median its 10-year median of 4.44 and 66.8% below the Chemicals industry median of 10.18. AECI's overall GF Score™ is 62/100 with 6 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 AECI (JSE:AFE), the current Interest Coverage is 3.38 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 AECI (JSE:AFE) Overvalued in 2026?
Based on GuruFocus' analysis, AECI stock appears to be overvalued.
The current stock price of R126.00 is trading 38.5% above its estimated GF Value™ of R90.99.
GuruFocus considers AECI to be Significantly Overvalued.
Key valuation signals for JSE:AFE:
Interest Coverage: 3.38 (24% below median its 10-year median of 4.44)
GF Value™: R90.99 vs. price of R126.00 (38.5% above fair value)
Industry Position: 66.8% below the Chemicals median (#949 of 1234)
No single metric tells the full story. See the JSE:AFE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AECI Ltd is a diversified group operating predominantly in the chemicals industry. The company performs its various business activities in the following reportable segments: AECI Mining, AECI Chemicals, AECI Managed Businesses, and AECI Property Services and Corporate. A majority of its revenue is generated from the AECI Mining segment, which provides a mine-to-mineral solution for the international mining sector. The offerings under this segment include commercial explosives, initiating systems, blasting services, and surfactants for explosives manufacture across the value chain to chemicals for ore beneficiation and tailings treatment. Geographically, the group generates a majority of its revenue from Africa, followed by Asia-Pacific, Europe, North America, and Latin America.
62GF Score
Get the complete analysis for JSE:AFE
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
JSE:AFE has been successfully added to your 
