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. Grupo Palacio de HierroB de CV's
Operating Income
for the
three
months ended in Mar. 2026 was MXN857 Mil. Grupo Palacio de HierroB de CV's Interest Expense for the
three
months ended in Mar. 2026 was MXN-304 Mil.
Grupo Palacio de HierroB de CV's interest coverage for the quarter that ended in Mar. 2026 was 2.82.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Grupo Palacio de Hierro SAB de CV interest coverage is 4.2, which is low.
The historical rank and industry rank for Grupo Palacio de HierroB de CV's Interest Coverage or its related term are showing as below:
MEX:GPH1'
s Interest Coverage Range Over the Past 10 Years
Min: 0.81 Med: 2.1 Max: 4.2
Current: 4.2
MEX:GPH1's Interest Coverage is not ranked
in the Retail - Cyclical industry.
Industry Median: 7.92
vs MEX:GPH1: 4.20
Grupo Palacio de HierroB de CV (MEX:GPH1) 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 .
Grupo Palacio de HierroB de CV Interest Coverage Related Terms
Grupo Palacio de HierroB de CV Interest Coverage Historical Data
* 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.
Grupo Palacio de HierroB de CV Interest Coverage Chart
For the Department Stores subindustry, Grupo Palacio de HierroB de CV'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.
Grupo Palacio de HierroB de CV Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Grupo Palacio de HierroB de CV's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Grupo Palacio de HierroB de CV's Interest Coverage falls into.
Grupo Palacio de HierroB de CV 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:
* 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.
Grupo Palacio de HierroB de CV (MEX:GPH1) has a Interest Coverage of 2.82 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Grupo Palacio de HierroB de CV and its competitors. This is 34% above median its historical median of 2.10. Over the past decade, Grupo Palacio de HierroB de CV's Interest Coverage has ranged from 0.81 to 4.20.
Is Grupo Palacio de HierroB de CV's Interest Coverage too high?
Grupo Palacio de HierroB de CV's current Interest Coverage of 2.82 is 34% above median its 10-year median of 2.10. Over the past 10 years, this metric has ranged from a low of 0.81 to a high of 4.20. The Retail - Cyclical industry median Interest Coverage is 7.92. Grupo Palacio de HierroB de CV's value of 2.82 is 64.4% below this industry median. Overall, Grupo Palacio de HierroB de CV has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Grupo Palacio de HierroB de CV's Interest Coverage compare to DDS and M?
Grupo Palacio de HierroB de CV's Interest Coverage of 2.82 can be compared against companies in the Retail - Cyclical industry. The industry median Interest Coverage is 7.92. Grupo Palacio de HierroB de CV's value of 2.82 is 64.4% below this benchmark. Historically, Grupo Palacio de HierroB de CV's own Interest Coverage has ranged from 0.81 to 4.20 over the past decade. While the company's 10-year median is 2.10 vs. the industry median of 7.92, Grupo Palacio de HierroB de CV 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 a Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.92, based on 825 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. Grupo Palacio de HierroB de CV's current Interest Coverage of 2.82 is 64.4% 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 Grupo Palacio de HierroB de CV and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grupo Palacio de HierroB de CV's current Interest Coverage is 2.82, which is 34% above median its own 10-year median of 2.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grupo Palacio de HierroB de CV stock overvalued right now?
Grupo Palacio de HierroB de CV (MEX:GPH1) has a current Interest Coverage of 2.82. The stock's GF Value™ is MXN64.42, compared to a current price of MXN42.00 — trading 34.8% below its estimated fair value. The current Interest Coverage is 2.82, which is 34% above median its 10-year median of 2.10 and 64.4% below the Retail - Cyclical industry median of 7.92. Grupo Palacio de HierroB de CV's overall GF Score™ is 12/100 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 Grupo Palacio de HierroB de CV (MEX:GPH1), the current Interest Coverage is 2.82 as of Mar. 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 Grupo Palacio de HierroB de CV (MEX:GPH1) Overvalued in 2026?
Based on GuruFocus' analysis, Grupo Palacio de HierroB de CV stock appears to be undervalued.
The current stock price of MXN42.00 is trading 34.8% below its estimated GF Value™ of MXN64.42.
Key valuation signals for MEX:GPH1:
Interest Coverage: 2.82 (34% above median its 10-year median of 2.10)
GF Value™: MXN64.42 vs. price of MXN42.00 (34.8% below fair value)
Industry Position: 64.4% below the Retail - Cyclical median
No single metric tells the full story. See the MEX:GPH1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grupo Palacio de HierroB de CV Business Description
Grupo Palacio de Hierro SAB de CV is a Mexico-based holding company primarily engaged in the retail sector. The company's main revenue generating activities are the operation of a network of department stores, outlets, home furnishing and accessories stores, Boutiques Palacio, boutiques, independent restaurants, bistros, restaurant-stores, travel agencies and beauty clinics as well as restaurants and travel agencies integrated into some of the stores. The company is also involved in the real estate, through the management and operation of shopping centers located in Coyoacan, Polanco, Puebla, and Monterrey. In addition, it offers sales financing services and consumer credits to its clients.
12GF Score
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