Hudaco IndustriesJSE:HDC +1.58%89 Interest Coverage is 26.99 as of Nov. 2025, which is 33% above its 10-year median of 20.34. GuruFocus rates JSE:HDC with a GF Score™ of 89/100 and a GF Value™ of R189.20 (Fairly Valued). Among 131 Industrial Distribution companies, Hudaco Industries ranks better than 75.57% 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. Hudaco Industries's
Operating Income
for the
six
months ended in Nov. 2025 was R673 Mil. Hudaco Industries's Interest Expense for the
six
months ended in Nov. 2025 was R-25 Mil.
Hudaco Industries's interest coverage for the quarter that ended in Nov. 2025 was 26.99.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Hudaco Industries's Interest Coverage or its related term are showing as below:
JSE:HDC'
s Interest Coverage Range Over the Past 10 Years
Min: 6.36 Med: 20.34 Max: 33.86
Current: 26.04
JSE:HDC's Interest Coverage is ranked better than 75.57% of 131
companies
in the Industrial Distribution industry
Industry Median: 6.74
vs JSE:HDC: 26.04
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 .
Hudaco Industries Interest Coverage Related Terms
Hudaco Industries Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hudaco Industries'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:HDC vs GWW, FAST, FERG: Interest Coverage Comparison
For the Industrial Distribution subindustry, Hudaco Industries'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.
Hudaco Industries Interest Coverage vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Hudaco Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hudaco Industries'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.
Hudaco Industries (JSE:HDC) has a Interest Coverage of 26.99 as of Nov. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hudaco Industries and its competitors. This is 33% above median its historical median of 20.34. Over the past decade, Hudaco Industries' Interest Coverage has ranged from 6.36 to 33.86. According to the industry distribution chart, Hudaco Industries ranks #32 out of 131 companies in the Industrial Distribution industry, placing it in the top 24.4%.
Is Hudaco Industries' Interest Coverage too high?
Hudaco Industries' current Interest Coverage of 26.99 is 33% above median its 10-year median of 20.34. Over the past 10 years, this metric has ranged from a low of 6.36 to a high of 33.86. The Industrial Distribution industry median Interest Coverage is 6.74. Hudaco Industries' value of 26.99 is 300.4% above this industry median. Based on the distribution chart, Hudaco Industries ranks #32 out of 131 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Hudaco Industries has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hudaco Industries' Interest Coverage compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Hudaco Industries ranks #32 out of 131 companies for Interest Coverage. This places Hudaco Industries in the top 24% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 6.74. Hudaco Industries' value of 26.99 is 300.4% above this benchmark. Historically, Hudaco Industries' own Interest Coverage has ranged from 6.36 to 33.86 over the past decade. While the company's 10-year median is 20.34 vs. the industry median of 6.74, Hudaco Industries 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 6.74, based on 131 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. Hudaco Industries's current Interest Coverage of 26.99 is 300.4% 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 Hudaco Industries and its competitors. For the Industrial Distribution industry, the median Interest Coverage is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hudaco Industries's current Interest Coverage is 26.99, which is 33% above median its own 10-year median of 20.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hudaco Industries stock overvalued right now?
Based on GuruFocus' analysis, Hudaco Industries (JSE:HDC) is currently considered Fairly Valued. The stock's GF Value™ is R189.20, compared to a current price of R193.00 — trading 2% above its estimated fair value. The current Interest Coverage is 26.99, which is 33% above median its 10-year median of 20.34 and 300.4% above the Industrial Distribution industry median of 6.74. Hudaco Industries' 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 Hudaco Industries (JSE:HDC), the current Interest Coverage is 26.99 as of Nov. 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 Hudaco Industries (JSE:HDC) Overvalued in 2026?
Based on GuruFocus' analysis, Hudaco Industries stock appears to be overvalued.
The current stock price of R193.00 is trading 2% above its estimated GF Value™ of R189.20.
GuruFocus considers Hudaco Industries to be Fairly Valued.
Key valuation signals for JSE:HDC:
Interest Coverage: 26.99 (33% above median its 10-year median of 20.34)
GF Value™: R189.20 vs. price of R193.00 (2% above fair value)
Industry Position: 300.4% above the Industrial Distribution median (#32 of 131)
No single metric tells the full story. See the JSE:HDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hudaco Industries Ltd is engaged in importing and distributing branded automotive, industrial and electrical consumable products. The company operates in two business segment such as Consumer-related product segment which includes power tools, security equipment, communication equipment, automotive and batteries, and Engineering consumables segment which consist of bearings, diesel engines and spares, and power transmission. It generates maximum revenue from Engineering consumables segment. Geographically, it derives a majority of revenue from South Africa.
89GF Score
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