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Engro HoldingsKAR:ENGROH +0.10%62 Interest Coverage is 2.38 as of Jun. 2026, which is 38% below its 10-year median of 3.81. GuruFocus rates KAR:ENGROH with a GF Score™ of 62/100 and a GF Value™ of ₨98.33 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 203 Agriculture companies, Engro Holdings ranks worse than 72.91% 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. Engro Holdings's
Operating Income
for the
three
months ended in Jun. 2026 was ₨30,080 Mil. Engro Holdings's Interest Expense for the
three
months ended in Jun. 2026 was ₨-12,626 Mil.
Engro Holdings's interest coverage for the quarter that ended in Jun. 2026 was 2.38.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Engro Holdings Ltd interest coverage is 3.14, which is low.
The historical rank and industry rank for Engro Holdings's Interest Coverage or its related term are showing as below:
KAR:ENGROH'
s Interest Coverage Range Over the Past 10 Years
Min: 2.19 Med: 3.81 Max: 8.62
Current: 3.14
KAR:ENGROH's Interest Coverage is ranked worse than 72.91% of 203
companies
in the Agriculture industry
Industry Median: 7.35
vs KAR:ENGROH: 3.14
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 .
Engro Holdings Interest Coverage Related Terms
Engro Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for Engro 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.
KAR:ENGROH vs CTVA, CF, MOS: Interest Coverage Comparison
For the Agricultural Inputs subindustry, Engro 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.
Engro Holdings Interest Coverage vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Engro Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Engro 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.
Engro Holdings (KAR:ENGROH) has a Interest Coverage of 2.38 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Engro Holdings and its competitors. This is 38% below median its historical median of 3.81. Over the past decade, Engro Holdings' Interest Coverage has ranged from 2.19 to 8.62. According to the industry distribution chart, Engro Holdings ranks #148 out of 203 companies in the Agriculture industry, placing it in the top 72.9%.
Is Engro Holdings' Interest Coverage too high?
Engro Holdings' current Interest Coverage of 2.38 is 38% below median its 10-year median of 3.81. Over the past 10 years, this metric has ranged from a low of 2.19 to a high of 8.62. The Agriculture industry median Interest Coverage is 7.35. Engro Holdings' value of 2.38 is 67.6% below this industry median. Based on the distribution chart, Engro Holdings ranks #148 out of 203 companies in the Agriculture industry, which is below the industry midpoint. Overall, Engro Holdings has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Engro Holdings' Interest Coverage compare to CTVA and CF?
According to the Agriculture industry distribution chart, Engro Holdings ranks #148 out of 203 companies for Interest Coverage. This places Engro Holdings in the lower half of its industry. The industry median Interest Coverage is 7.35. Engro Holdings' value of 2.38 is 67.6% below this benchmark. Historically, Engro Holdings' own Interest Coverage has ranged from 2.19 to 8.62 over the past decade. While the company's 10-year median is 3.81 vs. the industry median of 7.35, Engro Holdings 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 an Agriculture company?
The median Interest Coverage among Agriculture companies is 7.35, based on 203 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. Engro Holdings's current Interest Coverage of 2.38 is 67.6% 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 Engro Holdings and its competitors. For the Agriculture industry, the median Interest Coverage is 7.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Engro Holdings's current Interest Coverage is 2.38, which is 38% below median its own 10-year median of 3.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Engro Holdings stock overvalued right now?
Based on GuruFocus' analysis, Engro Holdings (KAR:ENGROH) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨98.33, compared to a current price of ₨267.88 — trading 172.4% above its estimated fair value. The current Interest Coverage is 2.38, which is 38% below median its 10-year median of 3.81 and 67.6% below the Agriculture industry median of 7.35. Engro Holdings' overall GF Score™ is 62/100 with 11 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 Engro Holdings (KAR:ENGROH), the current Interest Coverage is 2.38 as of Jun. 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 Engro Holdings (KAR:ENGROH) Overvalued in 2026?
Based on GuruFocus' analysis, Engro Holdings stock appears to be overvalued.
The current stock price of ₨267.88 is trading 172.4% above its estimated GF Value™ of ₨98.33.
GuruFocus considers Engro Holdings to be Significantly Overvalued.
Key valuation signals for KAR:ENGROH:
Interest Coverage: 2.38 (38% below median its 10-year median of 3.81)
GF Value™: ₨98.33 vs. price of ₨267.88 (172.4% above fair value)
Industry Position: 67.6% below the Agriculture median (#148 of 203)
No single metric tells the full story. See the KAR:ENGROH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Engro Holdings Ltd operates as a holding company in Pakistan. The principal activity of the company is to manage investments including in its subsidiaries. The company's segments include Fertilizer, Polymer, Terminal, Power and mining, Connectivity and telecom, and Other operations. The majority of revenue is derived from the fertilizers segment, which manufactures, purchases and markets fertilizers.
62GF Score
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