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. Merafe Resources's
Operating Income
for the
six
months ended in Dec. 2025 was $1.3 Mil. Merafe Resources's Interest Expense for the
six
months ended in Dec. 2025 was $0.0 Mil.
did not have earnings to cover the interest expense.
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. Merafe Resources Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Merafe Resources's Interest Coverage or its related term are showing as below:
MERFF'
s Interest Coverage Range Over the Past 10 Years
Min: 13.9 Med: 4516.97 Max: 23580.53
Current: 4516.97
MERFF's Interest Coverage is ranked worse than 60.9% of 1317
companies
in the Metals & Mining industry
Industry Median: No Debt
vs MERFF: 4516.97
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 .
Merafe Resources Interest Coverage Related Terms
Merafe Resources Interest Coverage Historical Data
* Premium members only.
The historical data trend for Merafe Resources'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.
For the Other Industrial Metals & Mining subindustry, Merafe Resources'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.
Merafe Resources Interest Coverage vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Merafe Resources's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Merafe Resources'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.
What does a Interest Coverage of 0 (At Loss) mean?
Merafe Resources (MERFF) has a Interest Coverage of 0 (At Loss) as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Merafe Resources and its competitors. Over the past decade, Merafe Resources' Interest Coverage has ranged from 13.90 to 23,580.53. According to the industry distribution chart, Merafe Resources ranks #802 out of 1317 companies in the Metals & Mining industry, placing it in the top 60.9%.
Is Merafe Resources' Interest Coverage too high?
Merafe Resources' current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 13.90 to a high of 23,580.53. Based on the distribution chart, Merafe Resources ranks #802 out of 1317 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, Merafe Resources has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Merafe Resources' Interest Coverage compare to competitors?
According to the Metals & Mining industry distribution chart, Merafe Resources ranks #802 out of 1317 companies for Interest Coverage. This places Merafe Resources in the lower half of its industry. The industry median Interest Coverage is 10,000.00. Historically, Merafe Resources' own Interest Coverage has ranged from 13.90 to 23,580.53 over the past decade. 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 Metals & Mining company?
The median Interest Coverage among Metals & Mining companies is 10,000.00, based on 1,317 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. 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 Merafe Resources and its competitors. For the Metals & Mining industry, the median Interest Coverage is 10,000.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merafe Resources's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merafe Resources stock overvalued right now?
Merafe Resources (MERFF) has a current Interest Coverage of 0 (At Loss). The stock's GF Value™ is $0.17, compared to a current price of $0.22 — trading 28.1% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Merafe Resources' overall GF Score™ is 64/100 with 9 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 Merafe Resources (MERFF), the current Interest Coverage is 0 (At Loss) as of Dec. 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 Merafe Resources (MERFF) Overvalued in 2026?
Based on GuruFocus' analysis, Merafe Resources stock appears to be overvalued.
The current stock price of $0.22 is trading 28.1% above its estimated GF Value™ of $0.17.
Key valuation signals for MERFF:
Interest Coverage: 0 (At Loss)
GF Value™: $0.17 vs. price of $0.22 (28.1% above fair value)
No single metric tells the full story. See the MERFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merafe Resources Ltd through its wholly-owned subsidiary, Merafe Ferrochrome and Mining Proprietary Limited, participates in chrome mining and the beneficiation of chrome ore into ferrochrome. The Glencore-Merafe Chrome Venture (Venture) operates five ferrochrome smelters, twenty-two ferrochrome furnaces, and nine mines, situated in the North-West, Limpopo, and Mpumalanga provinces of South Africa. The company has operating mines namel Marikana West; and Kroondal Gemini. The Group has one reportable segment being the mining and beneficiation of chrome ore into ferrochrome and associated minerals. Geographically, it has its presence in Africa, Americas, Asia, China, Indonesia, Other Asia, and Europe.
64GF Score
Get the complete analysis for MERFF
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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