Purple Group (JSE:PPE) Interest Coverage: 267.20 (As of Feb. 2026) — 2909% Above Median


JSE:PPE Purple Group Ltd JSE:PPE
71 GF Score
Price R1.68
GF Value R2.19
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Purple Group Interest Coverage?

Purple Group JSE:PPE +1.20% 71 Interest Coverage is 267.20 as of Feb. 2026, which is 2909% above its 10-year median of 8.88. GuruFocus rates JSE:PPE with a GF Score™ of 71/100 and a GF Value™ of R2.19 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 395 Diversified Financial Services companies, Purple Group ranks worse than 89.11% 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. Purple Group's Operating Income for the six months ended in Feb. 2026 was R56.9 Mil. Purple Group's Interest Expense for the six months ended in Feb. 2026 was R-0.2 Mil. Purple Group's interest coverage for the quarter that ended in Feb. 2026 was 267.20. 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. Purple Group Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

JSE:PPE' s Interest Coverage Range Over the Past 10 Years
Min: 3.09   Med: 8.88   Max: 103.99
Current: 103.99


JSE:PPE's Interest Coverage is ranked worse than
89.11% of 395 companies
in the Diversified Financial Services industry
Industry Median: No Debt vs JSE:PPE: 103.99

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


Purple Group  (JSE:PPE) 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 .


Purple Group Interest Coverage Related Terms


Purple Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for Purple Group'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.

Purple Group Interest Coverage Chart

Purple Group Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.58 18.32 0.00 8.88 72.44

Purple Group Semi-Annual Data
Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.59 5.59 96.82 58.73 267.20

JSE:PPE vs VOYA, FRHC: Interest Coverage Comparison

For the Financial Conglomerates subindustry, Purple Group'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.


Purple Group Interest Coverage vs Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Purple Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Purple Group's Interest Coverage falls into.


JSE:PPE
71GF Score
Purple Group Ltd JSE:PPE
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Purple Group 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.

Purple Group's Interest Coverage for the fiscal year that ended in Aug. 2025 is calculated as

Here, for the fiscal year that ended in Aug. 2025, Purple Group's Interest Expense was R-1.2 Mil. Its Operating Income was R86.9 Mil. And its Long-Term Debt & Capital Lease Obligation was R2.2 Mil.

Interest Coverage=-1* Operating Income (A: Aug. 2025 )/Interest Expense (A: Aug. 2025 )
=-1*86.932/-1.2
=72.44

Purple Group's Interest Coverage for the quarter that ended in Feb. 2026 is calculated as

Here, for the six months ended in Feb. 2026, Purple Group's Interest Expense was R-0.2 Mil. Its Operating Income was R56.9 Mil. And its Long-Term Debt & Capital Lease Obligation was R0.1 Mil.

Interest Coverage=-1* Operating Income (Q: Feb. 2026 )/Interest Expense (Q: Feb. 2026 )
=-1*56.914/-0.213
=267.20

* 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 267.20 mean?
Purple Group (JSE:PPE) has a Interest Coverage of 267.20 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Purple Group and its competitors. This is 2909% above median its historical median of 8.88. Over the past decade, Purple Group's Interest Coverage has ranged from 3.09 to 103.99. According to the industry distribution chart, Purple Group ranks #352 out of 395 companies in the Diversified Financial Services industry, placing it in the top 89.1%.
Is Purple Group's Interest Coverage too high?
Purple Group's current Interest Coverage of 267.20 is 2909% above median its 10-year median of 8.88. Over the past 10 years, this metric has ranged from a low of 3.09 to a high of 103.99. The Diversified Financial Services industry median Interest Coverage is 10,000.00. Purple Group's value of 267.20 is 97.3% below this industry median. Based on the distribution chart, Purple Group ranks #352 out of 395 companies in the Diversified Financial Services industry, which is in the bottom quartile relative to peers. Overall, Purple Group has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Purple Group's Interest Coverage compare to VOYA and FRHC?
According to the Diversified Financial Services industry distribution chart, Purple Group ranks #352 out of 395 companies for Interest Coverage. This places Purple Group in the lower half of its industry. The industry median Interest Coverage is 10,000.00. Purple Group's value of 267.20 is 97.3% below this benchmark. Historically, Purple Group's own Interest Coverage has ranged from 3.09 to 103.99 over the past decade. While the company's 10-year median is 8.88 vs. the industry median of 10,000.00, Purple Group 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 Diversified Financial Services company?
The median Interest Coverage among Diversified Financial Services companies is 10,000.00, based on 395 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. Purple Group's current Interest Coverage of 267.20 is 97.3% 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 Purple Group and its competitors. For the Diversified Financial Services industry, the median Interest Coverage is 10,000.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Purple Group's current Interest Coverage is 267.20, which is 2909% above median its own 10-year median of 8.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Purple Group stock overvalued right now?
Based on GuruFocus' analysis, Purple Group (JSE:PPE) is currently considered Modestly Undervalued. The stock's GF Value™ is R2.19, compared to a current price of R1.68 — trading 23.3% below its estimated fair value. The current Interest Coverage is 267.20, which is 2909% above median its 10-year median of 8.88 and 97.3% below the Diversified Financial Services industry median of 10,000.00. Purple Group's overall GF Score™ is 71/100 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 Purple Group (JSE:PPE), the current Interest Coverage is 267.20 as of Feb. 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 Purple Group (JSE:PPE) Overvalued in 2026?

Based on GuruFocus' analysis, Purple Group stock appears to be undervalued. The current stock price of R1.68 is trading 23.3% below its estimated GF Value™ of R2.19. GuruFocus considers Purple Group to be Modestly Undervalued.

Key valuation signals for JSE:PPE:

  • Interest Coverage: 267.20 (2909% above median its 10-year median of 8.88)
  • GF Value™: R2.19 vs. price of R1.68 (23.3% below fair value)
  • GF Score™: 71/100 with 1 warning sign
  • Industry Position: 97.3% below the Diversified Financial Services median (#352 of 395)

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


Purple Group Business Description

Address 173 Oxford Road, WeWork - Coworking & Office Space 1F, Rosebank, Johannesburg, GT, ZAF, 2196
Purple Group Ltd operates as a financial services company. The company engages in trading, investing, and asset management, and also offers various products and services related to investing and managing portfolios. The Group comprises the following operating segments: Easy Group includes First World Trader Proprietary Limited (FWT or EasyEquities), EasyProperties Proprietary Limited (EasyProperties), EasyDefi Technologies Proprietary Limited (Easy Crypto), and Retirement Investments and Savings for Everyone (RISE or EasyRetire). Head Office and Investments represent fees and dividends earned on investments and fair value adjustments made against them, as well as head office costs.
71GF Score

Get the complete analysis for JSE:PPE

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

R1.68
Price
R2.19
GF Value