Sephaku HoldingsJSE:SEP -6.50%75 Interest Coverage is 8.49 as of Sep. 2025, which is 159% above its 10-year median of 3.28. GuruFocus rates JSE:SEP with a GF Score™ of 75/100 and a GF Value™ of R1.73 (Fairly Valued). The stock has 3 warning signs investors should review. Among 307 Building Materials companies, Sephaku Holdings ranks better than 50.81% 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. Sephaku Holdings's
Operating Income
for the
six
months ended in Sep. 2025 was R67 Mil. Sephaku Holdings's Interest Expense for the
six
months ended in Sep. 2025 was R-8 Mil.
Sephaku Holdings's interest coverage for the quarter that ended in Sep. 2025 was 8.49.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Sephaku Holdings's Interest Coverage or its related term are showing as below:
JSE:SEP'
s Interest Coverage Range Over the Past 10 Years
Min: 0.77 Med: 3.28 Max: 84249
Current: 6.83
JSE:SEP's Interest Coverage is ranked better than 50.81% of 307
companies
in the Building Materials industry
Industry Median: 6.63
vs JSE:SEP: 6.83
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 .
Sephaku Holdings Interest Coverage Related Terms
Sephaku Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for Sephaku Holdings'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:SEP vs CRH, VMC, MLM: Interest Coverage Comparison
For the Building Materials subindustry, Sephaku Holdings'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.
Sephaku Holdings Interest Coverage vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Sephaku Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Sephaku Holdings'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.
Sephaku Holdings (JSE:SEP) has a Interest Coverage of 8.49 as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sephaku Holdings and its competitors. This is 159% above median its historical median of 3.28. Over the past decade, Sephaku Holdings' Interest Coverage has ranged from 0.77 to 84,249.00. According to the industry distribution chart, Sephaku Holdings ranks #151 out of 307 companies in the Building Materials industry, placing it in the top 49.2%.
Is Sephaku Holdings' Interest Coverage too high?
Sephaku Holdings' current Interest Coverage of 8.49 is 159% above median its 10-year median of 3.28. Over the past 10 years, this metric has ranged from a low of 0.77 to a high of 84,249.00. The Building Materials industry median Interest Coverage is 6.63. Sephaku Holdings' value of 8.49 is 28.1% above this industry median. Based on the distribution chart, Sephaku Holdings ranks #151 out of 307 companies in the Building Materials industry, which is above the industry midpoint. Overall, Sephaku Holdings has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sephaku Holdings' Interest Coverage compare to CRH and VMC?
According to the Building Materials industry distribution chart, Sephaku Holdings ranks #151 out of 307 companies for Interest Coverage. This puts Sephaku Holdings in the upper half of its industry. The industry median Interest Coverage is 6.63. Sephaku Holdings' value of 8.49 is 28.1% above this benchmark. Historically, Sephaku Holdings' own Interest Coverage has ranged from 0.77 to 84,249.00 over the past decade. While the company's 10-year median is 3.28 vs. the industry median of 6.63, Sephaku Holdings 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 Building Materials company?
The median Interest Coverage among Building Materials companies is 6.63, based on 307 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. Sephaku Holdings's current Interest Coverage of 8.49 is 28.1% 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 Sephaku Holdings and its competitors. For the Building Materials industry, the median Interest Coverage is 6.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sephaku Holdings's current Interest Coverage is 8.49, which is 159% above median its own 10-year median of 3.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sephaku Holdings stock overvalued right now?
Based on GuruFocus' analysis, Sephaku Holdings (JSE:SEP) is currently considered Fairly Valued. The stock's GF Value™ is R1.73, compared to a current price of R1.87 — trading 8.1% above its estimated fair value. The current Interest Coverage is 8.49, which is 159% above median its 10-year median of 3.28 and 28.1% above the Building Materials industry median of 6.63. Sephaku Holdings' overall GF Score™ is 75/100 with 3 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 Sephaku Holdings (JSE:SEP), the current Interest Coverage is 8.49 as of Sep. 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 Sephaku Holdings (JSE:SEP) Overvalued in 2026?
Based on GuruFocus' analysis, Sephaku Holdings stock appears to be overvalued.
The current stock price of R1.87 is trading 8.1% above its estimated GF Value™ of R1.73.
GuruFocus considers Sephaku Holdings to be Fairly Valued.
Key valuation signals for JSE:SEP:
Interest Coverage: 8.49 (159% above median its 10-year median of 3.28)
GF Value™: R1.73 vs. price of R1.87 (8.1% above fair value)
Industry Position: 28.1% above the Building Materials median (#151 of 307)
No single metric tells the full story. See the JSE:SEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sephaku Holdings Ltd is a construction materials company. It offers investors a portfolio of assets focused on the building and construction materials industry. The company comprises ready-mix concrete and head office as the two main segments. The ready-mix concrete segment represents the part of the business that manufactures and sells ready-mixed concrete through its subsidiaries in South Africa.
75GF Score
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