Chemring GroupLSE:CHG +5.13%86 Interest Coverage is 7.48 as of Apr. 2026, which is 1% below its 10-year median of 7.56. GuruFocus rates LSE:CHG with a GF Score™ of 86/100 and a GF Value™ of £4.32 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 241 Aerospace & Defense companies, Chemring Group ranks better than 58.92% 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. Chemring Group's
Operating Income
for the
six
months ended in Apr. 2026 was £21.7 Mil. Chemring Group's Interest Expense for the
six
months ended in Apr. 2026 was £-2.9 Mil.
Chemring Group's interest coverage for the quarter that ended in Apr. 2026 was 7.48.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Chemring Group's Interest Coverage or its related term are showing as below:
LSE:CHG'
s Interest Coverage Range Over the Past 10 Years
Min: 0.52 Med: 7.56 Max: 156.5
Current: 11.82
LSE:CHG's Interest Coverage is ranked better than 58.92% of 241
companies
in the Aerospace & Defense industry
Industry Median: 8.69
vs LSE:CHG: 11.82
Chemring Group (LSE:CHG) 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 .
Chemring Group Interest Coverage Related Terms
Chemring Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Chemring 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.
LSE:CHG vs SPCX, GE, RTX: Interest Coverage Comparison
For the Aerospace & Defense subindustry, Chemring 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.
Chemring Group Interest Coverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Chemring Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Chemring 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.
Chemring Group (LSE:CHG) has a Interest Coverage of 7.48 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Chemring Group and its competitors. This is near median its historical median of 7.56. Over the past decade, Chemring Group's Interest Coverage has ranged from 0.52 to 156.50. According to the industry distribution chart, Chemring Group ranks #99 out of 241 companies in the Aerospace & Defense industry, placing it in the top 41.1%.
Is Chemring Group's Interest Coverage too high?
Chemring Group's current Interest Coverage of 7.48 is near median its 10-year median of 7.56. Over the past 10 years, this metric has ranged from a low of 0.52 to a high of 156.50. The Aerospace & Defense industry median Interest Coverage is 8.69. Chemring Group's value of 7.48 is 13.9% below this industry median. Based on the distribution chart, Chemring Group ranks #99 out of 241 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Chemring Group has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chemring Group's Interest Coverage compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Chemring Group ranks #99 out of 241 companies for Interest Coverage. This puts Chemring Group in the upper half of its industry. The industry median Interest Coverage is 8.69. Chemring Group's value of 7.48 is 13.9% below this benchmark. Historically, Chemring Group's own Interest Coverage has ranged from 0.52 to 156.50 over the past decade. While the company's 10-year median is 7.56 vs. the industry median of 8.69, Chemring 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 an Aerospace & Defense company?
The median Interest Coverage among Aerospace & Defense companies is 8.69, based on 241 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. Chemring Group's current Interest Coverage of 7.48 is 13.9% 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 Chemring Group and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 8.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chemring Group's current Interest Coverage is 7.48, which is near median its own 10-year median of 7.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemring Group stock overvalued right now?
Based on GuruFocus' analysis, Chemring Group (LSE:CHG) is currently considered Modestly Overvalued. The stock's GF Value™ is £4.32, compared to a current price of £5.12 — trading 18.5% above its estimated fair value. The current Interest Coverage is 7.48, which is near median its 10-year median of 7.56 and 13.9% below the Aerospace & Defense industry median of 8.69. Chemring Group's overall GF Score™ is 86/100 with 5 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 Chemring Group (LSE:CHG), the current Interest Coverage is 7.48 as of Apr. 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 Chemring Group (LSE:CHG) Overvalued in 2026?
Based on GuruFocus' analysis, Chemring Group stock appears to be overvalued.
The current stock price of £5.12 is trading 18.5% above its estimated GF Value™ of £4.32.
GuruFocus considers Chemring Group to be Modestly Overvalued.
Key valuation signals for LSE:CHG:
Interest Coverage: 7.48 (near median its 10-year median of 7.56)
GF Value™: £4.32 vs. price of £5.12 (18.5% above fair value)
Industry Position: 13.9% below the Aerospace & Defense median (#99 of 241)
No single metric tells the full story. See the LSE:CHG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chemring Group PLC is a defense technology company. The company's operating segment include: i) Countermeasures and Energetics segment: It is engaged in the development and manufacturing of expendable countermeasures for air and sea platforms, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment, missile components, propellants, separation sub-systems, actuators, and energetic materials, ii) Sensors and Information: it is engaged in the development and manufacturing of electronic countermeasures, chemical and biological threat detection equipment, and explosive hazard detection (EHD) equipment. It generated the majority of the revenue from the Countermeasures and Energetics segment. Geographically, the maximum revenue is generated from the USA.
86GF Score
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