Stademos Hotels (LTS:0OA5) Interest Coverage: 9.62 (As of Dec. 2018) — 224% Above Median


What is Stademos Hotels Interest Coverage?

Stademos Hotels LTS:0OA5 8 Interest Coverage is 9.62 as of Dec. 2018, which is 224% above its 10-year median of 2.97. GuruFocus rates LTS:0OA5 with a GF Score™ of 8/100. The stock has 6 warning signs investors should review.

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. Stademos Hotels's Operating Income for the six months ended in Dec. 2018 was €7.31 Mil. Stademos Hotels's Interest Expense for the six months ended in Dec. 2018 was €-0.76 Mil. Stademos Hotels's interest coverage for the quarter that ended in Dec. 2018 was 9.62. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Stademos Hotels's Interest Coverage or its related term are showing as below:

LTS:0OA5' s Interest Coverage Range Over the Past 10 Years
Min: 1.45   Med: 2.97   Max: 5.89
Current: 5.89


LTS:0OA5's Interest Coverage is not ranked
in the Travel & Leisure industry.
Industry Median: 5.35 vs LTS:0OA5: 5.89

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Stademos Hotels  (LTS:0OA5) 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 .


Stademos Hotels Interest Coverage Related Terms


Stademos Hotels Interest Coverage Historical Data

* Premium members only.

The historical data trend for Stademos Hotels'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.

Stademos Hotels Interest Coverage Chart

Stademos Hotels Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Interest Coverage
Get a 7-Day Free Trial 2.66 3.27 4.44 5.22 5.89

Stademos Hotels Semi-Annual Data
Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.36 2.37 8.26 2.87 9.62

Stademos Hotels Interest Coverage Competitor Comparison

For the Lodging subindustry, Stademos Hotels'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.


Stademos Hotels Interest Coverage vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Stademos Hotels's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Stademos Hotels's Interest Coverage falls into.



Stademos Hotels Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Stademos Hotels's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, Stademos Hotels's Interest Expense was €-1.70 Mil. Its Operating Income was €10.00 Mil. And its Long-Term Debt & Capital Lease Obligation was €101.70 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2018 )/Interest Expense (A: Dec. 2018 )
=-1*9.998/-1.697
=5.89

Stademos Hotels's Interest Coverage for the quarter that ended in Dec. 2018 is calculated as

Here, for the six months ended in Dec. 2018, Stademos Hotels's Interest Expense was €-0.76 Mil. Its Operating Income was €7.31 Mil. And its Long-Term Debt & Capital Lease Obligation was €101.70 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2018 )/Interest Expense (Q: Dec. 2018 )
=-1*7.312/-0.76
=9.62

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 9.62 mean?
Stademos Hotels (LTS:0OA5) has a Interest Coverage of 9.62 as of Dec. 2018. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Stademos Hotels and its competitors. This is 224% above median its historical median of 2.97. Over the past decade, Stademos Hotels' Interest Coverage has ranged from 1.45 to 5.89.
Is Stademos Hotels' Interest Coverage too high?
Stademos Hotels' current Interest Coverage of 9.62 is 224% above median its 10-year median of 2.97. Over the past 10 years, this metric has ranged from a low of 1.45 to a high of 5.89. The Travel & Leisure industry median Interest Coverage is 5.35. Stademos Hotels' value of 9.62 is 79.8% above this industry median. Overall, Stademos Hotels has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Stademos Hotels' Interest Coverage compare to competitors?
Stademos Hotels' Interest Coverage of 9.62 can be compared against companies in the Travel & Leisure industry. The industry median Interest Coverage is 5.35. Stademos Hotels' value of 9.62 is 79.8% above this benchmark. Historically, Stademos Hotels' own Interest Coverage has ranged from 1.45 to 5.89 over the past decade. While the company's 10-year median is 2.97 vs. the industry median of 5.35, Stademos Hotels 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 Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 609 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. Stademos Hotels's current Interest Coverage of 9.62 is 79.8% 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 Stademos Hotels and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stademos Hotels's current Interest Coverage is 9.62, which is 224% above median its own 10-year median of 2.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stademos Hotels stock overvalued right now?
Stademos Hotels (LTS:0OA5) has a current Interest Coverage of 9.62. The current Interest Coverage is 9.62, which is 224% above median its 10-year median of 2.97 and 79.8% above the Travel & Leisure industry median of 5.35. Stademos Hotels' overall GF Score™ is 8/100 with 6 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 Stademos Hotels (LTS:0OA5), the current Interest Coverage is 9.62 as of Dec. 2018. 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.

Stademos Hotels Business Description

Address 60 Amathus Avenue, P.O.Box 56767, Agios Tychonas, Limassol, CYP, 4533
Stademos Hotels operates in the hotel industry. The principal activity of the company is the ownership and operation of hotels. The company owns and operates two hotels in Cyprus, the four-star Mediterranean beach hotel in Limassol and the five-star Elysium in Paphos.