Spar GroupJSE:SPP -3.70%52 Interest Coverage is 1.02 as of Mar. 2026, which is 70% below its 10-year median of 3.35. GuruFocus rates JSE:SPP with a GF Score™ of 52/100 and a GF Value™ of R107.93 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 255 Retail - Defensive companies, Spar Group ranks worse than 91.37% 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. Spar Group's
Operating Income
for the
six
months ended in Mar. 2026 was R679 Mil. Spar Group's Interest Expense for the
six
months ended in Mar. 2026 was R-668 Mil.
Spar Group's interest coverage for the quarter that ended in Mar. 2026 was 1.02.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Spar Group's Interest Coverage or its related term are showing as below:
JSE:SPP'
s Interest Coverage Range Over the Past 10 Years
Min: 1.47 Med: 3.35 Max: 24.34
Current: 1.47
JSE:SPP's Interest Coverage is ranked worse than 91.37% of 255
companies
in the Retail - Defensive industry
Industry Median: 8.8
vs JSE:SPP: 1.47
Spar Group (JSE:SPP) 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 .
Spar Group Interest Coverage Related Terms
Spar Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Spar 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.
JSE:SPP vs SYY, USFD, PFGC: Interest Coverage Comparison
For the Food Distribution subindustry, Spar 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.
Spar Group Interest Coverage vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Spar Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Spar Group'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.
Spar Group (JSE:SPP) has a Interest Coverage of 1.02 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Spar Group and its competitors. This is 70% below median its historical median of 3.35. Over the past decade, Spar Group's Interest Coverage has ranged from 1.47 to 24.34. According to the industry distribution chart, Spar Group ranks #233 out of 255 companies in the Retail - Defensive industry, placing it in the top 91.4%.
Is Spar Group's Interest Coverage too high?
Spar Group's current Interest Coverage of 1.02 is 70% below median its 10-year median of 3.35. Over the past 10 years, this metric has ranged from a low of 1.47 to a high of 24.34. The Retail - Defensive industry median Interest Coverage is 8.80. Spar Group's value of 1.02 is 88.4% below this industry median. Based on the distribution chart, Spar Group ranks #233 out of 255 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Spar Group has a GF Score™ of 52/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Spar Group's Interest Coverage compare to SYY and USFD?
According to the Retail - Defensive industry distribution chart, Spar Group ranks #233 out of 255 companies for Interest Coverage. This places Spar Group in the lower half of its industry. The industry median Interest Coverage is 8.80. Spar Group's value of 1.02 is 88.4% below this benchmark. Historically, Spar Group's own Interest Coverage has ranged from 1.47 to 24.34 over the past decade. While the company's 10-year median is 3.35 vs. the industry median of 8.80, Spar 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 Retail - Defensive company?
The median Interest Coverage among Retail - Defensive companies is 8.80, based on 255 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. Spar Group's current Interest Coverage of 1.02 is 88.4% 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 Spar Group and its competitors. For the Retail - Defensive industry, the median Interest Coverage is 8.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spar Group's current Interest Coverage is 1.02, which is 70% below median its own 10-year median of 3.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spar Group stock overvalued right now?
Based on GuruFocus' analysis, Spar Group (JSE:SPP) is currently considered Significantly Undervalued. The stock's GF Value™ is R107.93, compared to a current price of R45.78 — trading 57.6% below its estimated fair value. The current Interest Coverage is 1.02, which is 70% below median its 10-year median of 3.35 and 88.4% below the Retail - Defensive industry median of 8.80. Spar Group's overall GF Score™ is 52/100 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 Spar Group (JSE:SPP), the current Interest Coverage is 1.02 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 Spar Group (JSE:SPP) Overvalued in 2026?
Based on GuruFocus' analysis, Spar Group stock appears to be undervalued.
The current stock price of R45.78 is trading 57.6% below its estimated GF Value™ of R107.93.
GuruFocus considers Spar Group to be Significantly Undervalued.
Key valuation signals for JSE:SPP:
Interest Coverage: 1.02 (70% below median its 10-year median of 3.35)
GF Value™: R107.93 vs. price of R45.78 (57.6% below fair value)
Industry Position: 88.4% below the Retail - Defensive median (#233 of 255)
No single metric tells the full story. See the JSE:SPP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spar Group Ltd operates as a wholesaler and distributor of goods and services to SPAR grocery stores and multiple other branded group retail outlets across multiple regions. It supplies fresh produce and merchandise to a network of independent retailers who operate under its brands like TOPS at SPAR, Build it, SPAR Health, and Encore. The company's revenue mainly comprise the revenue from the sale of merchandise, marketing and promotional activities as well as franchise fees. Geographically, it has a presence in Southern Africa, Ireland and South West England, Switzerland, Poland and Sri Lanka, with the majority of revenue generated from South Africa.
52GF Score
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