Sika AG (LTS:0Z4C) Interest Coverage: 11.01 (As of Jun. 2026) — 50% Below Median

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LTS:0Z4C Sika AG LTS:0Z4C
89 GF Score
Price CHF178.90
GF Value CHF216.46
Valuation Modestly Undervalued
! 8 Warning Signs
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What is Sika AG Interest Coverage?

Sika AG LTS:0Z4C +0.17% 89 Interest Coverage is 11.01 as of Jun. 2026, which is 50% below its 10-year median of 22.08. GuruFocus rates LTS:0Z4C with a GF Score™ of 89/100 and a GF Value™ of CHF216.46 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,235 Chemicals companies, Sika AG ranks worse than 50.93% 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. Sika AG's Operating Income for the six months ended in Jun. 2026 was CHF796 Mil. Sika AG's Interest Expense for the six months ended in Jun. 2026 was CHF-72 Mil. Sika AG's interest coverage for the quarter that ended in Jun. 2026 was 11.01. The higher the ratio, the stronger the company's financial strength is.

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

LTS:0Z4C' s Interest Coverage Range Over the Past 10 Years
Min: 9.22   Med: 22.08   Max: 48.98
Current: 10.06


LTS:0Z4C's Interest Coverage is ranked worse than
50.93% of 1235 companies
in the Chemicals industry
Industry Median: 10.26 vs LTS:0Z4C: 10.06

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


Sika AG  (LTS:0Z4C) 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 .


Sika AG Interest Coverage Related Terms


Sika AG Interest Coverage Historical Data

* Premium members only.

The historical data trend for Sika AG'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.

Sika AG Interest Coverage Chart

Sika AG Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.45 26.59 9.41 9.22 9.65

Sika AG Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.67 9.79 10.10 9.19 11.01

LTS:0Z4C vs LIN, SHW, ECL: Interest Coverage Comparison

For the Specialty Chemicals subindustry, Sika AG'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.


Sika AG Interest Coverage vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sika AG's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sika AG's Interest Coverage falls into.


LTS:0Z4C
89GF Score
Sika AG LTS:0Z4C
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sika AG 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.

Sika AG's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Sika AG's Interest Expense was CHF-158 Mil. Its Operating Income was CHF1,523 Mil. And its Long-Term Debt & Capital Lease Obligation was CHF4,127 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*1523/-157.9
=9.65

Sika AG's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the six months ended in Jun. 2026, Sika AG's Interest Expense was CHF-72 Mil. Its Operating Income was CHF796 Mil. And its Long-Term Debt & Capital Lease Obligation was CHF4,546 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*796.1/-72.3
=11.01

* 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 11.01 mean?
Sika AG (LTS:0Z4C) has a Interest Coverage of 11.01 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sika AG and its competitors. This is 50% below median its historical median of 22.08. Over the past decade, Sika AG's Interest Coverage has ranged from 9.22 to 48.98. According to the industry distribution chart, Sika AG ranks #629 out of 1235 companies in the Chemicals industry, placing it in the top 50.9%.
Is Sika AG's Interest Coverage too high?
Sika AG's current Interest Coverage of 11.01 is 50% below median its 10-year median of 22.08. Over the past 10 years, this metric has ranged from a low of 9.22 to a high of 48.98. The Chemicals industry median Interest Coverage is 10.26. Sika AG's value of 11.01 is 7.3% above this industry median. Based on the distribution chart, Sika AG ranks #629 out of 1235 companies in the Chemicals industry, which is below the industry midpoint. Overall, Sika AG has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sika AG's Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sika AG ranks #629 out of 1235 companies for Interest Coverage. This places Sika AG in the lower half of its industry. The industry median Interest Coverage is 10.26. Sika AG's value of 11.01 is 7.3% above this benchmark. Historically, Sika AG's own Interest Coverage has ranged from 9.22 to 48.98 over the past decade. While the company's 10-year median is 22.08 vs. the industry median of 10.26, Sika AG 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.26, based on 1,235 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. Sika AG's current Interest Coverage of 11.01 is 7.3% 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 Sika AG and its competitors. For the Chemicals industry, the median Interest Coverage is 10.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sika AG's current Interest Coverage is 11.01, which is 50% below median its own 10-year median of 22.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sika AG stock overvalued right now?
Based on GuruFocus' analysis, Sika AG (LTS:0Z4C) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF216.46, compared to a current price of CHF178.90 — trading 17.4% below its estimated fair value. The current Interest Coverage is 11.01, which is 50% below median its 10-year median of 22.08 and 7.3% above the Chemicals industry median of 10.26. Sika AG's overall GF Score™ is 89/100 with 8 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 Sika AG (LTS:0Z4C), the current Interest Coverage is 11.01 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 Sika AG (LTS:0Z4C) Overvalued in 2026?

Based on GuruFocus' analysis, Sika AG stock appears to be undervalued. The current stock price of CHF178.90 is trading 17.4% below its estimated GF Value™ of CHF216.46. GuruFocus considers Sika AG to be Modestly Undervalued.

Key valuation signals for LTS:0Z4C:

  • Interest Coverage: 11.01 (50% below median its 10-year median of 22.08)
  • GF Value™: CHF216.46 vs. price of CHF178.90 (17.4% below fair value)
  • GF Score™: 89/100 with 8 warning signs
  • Industry Position: 7.3% above the Chemicals median (#629 of 1235)

No single metric tells the full story. See the LTS:0Z4C stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sika AG Business Description

Address Zugerstrasse 50, Baar, CHE, 6340
Established in 1910, Sika produces specialty chemicals primarily used by the construction sector (85% of sales). Its products are mainly used for bonding, sealing, reinforcing, and protecting in the construction and automotive industries. Approximately 70% of its products have a positive impact on sustainability for customers. Sika has a global manufacturing footprint of more than 400 factories spread across over 100 countries.
89GF Score

Get the complete analysis for LTS:0Z4C

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF178.90
Price
CHF216.46
GF Value