Mercia Asset ManagementLSE:MERC 54 Interest Coverage is 50.31 as of Sep. 2025, which is 75% below its 10-year median of 199.80. GuruFocus rates LSE:MERC with a GF Score™ of 54/100 and a GF Value™ of £0.36 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 475 Asset Management companies, Mercia Asset Management ranks worse than 210526.11% 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. Mercia Asset Management's
Operating Income
for the
six
months ended in Sep. 2025 was £2.11 Mil. Mercia Asset Management's Interest Expense for the
six
months ended in Sep. 2025 was £-0.04 Mil.
Mercia Asset Management's interest coverage for the quarter that ended in Sep. 2025 was 50.31.
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. Mercia Asset Management PLC has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Mercia Asset Management's Interest Coverage or its related term are showing as below:
LSE:MERC's Interest Coverage is not ranked *
in the Asset Management industry.
Industry Median: 42.97 * Ranked among companies with meaningful Interest Coverage only.
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 .
Mercia Asset Management Interest Coverage Related Terms
Mercia Asset Management Interest Coverage Historical Data
* Premium members only.
The historical data trend for Mercia Asset Management'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:MERC vs BLK, BX, KKR: Interest Coverage Comparison
For the Asset Management subindustry, Mercia Asset Management'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.
Mercia Asset Management Interest Coverage vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Mercia Asset Management's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Mercia Asset Management'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.
Mercia Asset Management (LSE:MERC) has a Interest Coverage of 50.31 as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Mercia Asset Management and its competitors. This is 75% below median its historical median of 199.80. Over the past decade, Mercia Asset Management's Interest Coverage has ranged from 18.88 to 10,000.00. According to the industry distribution chart, Mercia Asset Management ranks #999999 out of 475 companies in the Asset Management industry.
Is Mercia Asset Management's Interest Coverage too high?
Mercia Asset Management's current Interest Coverage of 50.31 is 75% below median its 10-year median of 199.80. Over the past 10 years, this metric has ranged from a low of 18.88 to a high of 10,000.00. The Asset Management industry median Interest Coverage is 42.97. Mercia Asset Management's value of 50.31 is 17.1% above this industry median. Based on the distribution chart, Mercia Asset Management ranks #999999 out of 475 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Mercia Asset Management has a GF Score™ of 54/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mercia Asset Management's Interest Coverage compare to BLK and BX?
According to the Asset Management industry distribution chart, Mercia Asset Management ranks #999999 out of 475 companies for Interest Coverage. This places Mercia Asset Management in the lower half of its industry. The industry median Interest Coverage is 42.97. Mercia Asset Management's value of 50.31 is 17.1% above this benchmark. Historically, Mercia Asset Management's own Interest Coverage has ranged from 18.88 to 10,000.00 over the past decade. While the company's 10-year median is 199.80 vs. the industry median of 42.97, Mercia Asset Management 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 an Asset Management company?
The median Interest Coverage among Asset Management companies is 42.97, based on 475 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. Mercia Asset Management's current Interest Coverage of 50.31 is 17.1% 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 Mercia Asset Management and its competitors. For the Asset Management industry, the median Interest Coverage is 42.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercia Asset Management's current Interest Coverage is 50.31, which is 75% below median its own 10-year median of 199.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercia Asset Management stock overvalued right now?
Based on GuruFocus' analysis, Mercia Asset Management (LSE:MERC) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.36, compared to a current price of £0.29 — trading 20.1% below its estimated fair value. The current Interest Coverage is 50.31, which is 75% below median its 10-year median of 199.80 and 17.1% above the Asset Management industry median of 42.97. Mercia Asset Management's overall GF Score™ is 54/100 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 Mercia Asset Management (LSE:MERC), the current Interest Coverage is 50.31 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 Mercia Asset Management (LSE:MERC) Overvalued in 2026?
Based on GuruFocus' analysis, Mercia Asset Management stock appears to be undervalued.
The current stock price of £0.29 is trading 20.1% below its estimated GF Value™ of £0.36.
GuruFocus considers Mercia Asset Management to be Modestly Undervalued.
Key valuation signals for LSE:MERC:
Interest Coverage: 50.31 (75% below median its 10-year median of 199.80)
GF Value™: £0.36 vs. price of £0.29 (20.1% below fair value)
Industry Position: 17.1% above the Asset Management median (#999999 of 475)
No single metric tells the full story. See the LSE:MERC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercia Asset Management PLC is a specialist asset manager focusing on supporting regional SMEs. The company provides capital across its four asset classes proprietary balance sheet capital, venture capital, private equity, and debt. The company initially nurtures businesses via its third-party funds under management and then, over time, provides further funding to the companies by deploying direct investment follow-on capital from its balance sheet. It has more than eight offices in the UK region, approx. 20 university partnerships and extensive personal networks, providing it with access to high-quality deal flow.
54GF Score
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