Hera SpAMEX:HERN 56 Interest Coverage is 4.95 as of Mar. 2026, which is 10% above its 10-year median of 4.51. GuruFocus rates MEX:HERN with a GF Score™ of 56/100 and a GF Value™ of MXN70.12 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 449 Utilities - Regulated companies, Hera SpA ranks better than 58.35% 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. Hera SpA's
Operating Income
for the
three
months ended in Mar. 2026 was MXN5,187 Mil. Hera SpA's Interest Expense for the
three
months ended in Mar. 2026 was MXN-1,049 Mil.
Hera SpA's interest coverage for the quarter that ended in Mar. 2026 was 4.95.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Hera SpA's Interest Coverage or its related term are showing as below:
MEX:HERN'
s Interest Coverage Range Over the Past 10 Years
Min: 3.86 Med: 4.51 Max: 5.61
Current: 4.76
MEX:HERN's Interest Coverage is ranked better than 58.35% of 449
companies
in the Utilities - Regulated industry
Industry Median: 3.78
vs MEX:HERN: 4.76
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 .
Hera SpA Interest Coverage Related Terms
Hera SpA Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hera SpA'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 Utilities - Diversified subindustry, Hera SpA'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.
Hera SpA Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Hera SpA's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hera SpA'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.
Hera SpA (MEX:HERN) has a Interest Coverage of 4.95 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hera SpA and its competitors. This is 10% above median its historical median of 4.51. Over the past decade, Hera SpA's Interest Coverage has ranged from 3.86 to 5.61. According to the industry distribution chart, Hera SpA ranks #187 out of 449 companies in the Utilities - Regulated industry, placing it in the top 41.6%.
Is Hera SpA's Interest Coverage too high?
Hera SpA's current Interest Coverage of 4.95 is 10% above median its 10-year median of 4.51. Over the past 10 years, this metric has ranged from a low of 3.86 to a high of 5.61. The Utilities - Regulated industry median Interest Coverage is 3.78. Hera SpA's value of 4.95 is 31% above this industry median. Based on the distribution chart, Hera SpA ranks #187 out of 449 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Hera SpA has a GF Score™ of 56/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hera SpA's Interest Coverage compare to SRE?
According to the Utilities - Regulated industry distribution chart, Hera SpA ranks #187 out of 449 companies for Interest Coverage. This puts Hera SpA in the upper half of its industry. The industry median Interest Coverage is 3.78. Hera SpA's value of 4.95 is 31% above this benchmark. Historically, Hera SpA's own Interest Coverage has ranged from 3.86 to 5.61 over the past decade. While the company's 10-year median is 4.51 vs. the industry median of 3.78, Hera SpA 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 Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 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. Hera SpA's current Interest Coverage of 4.95 is 31% 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 Hera SpA and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hera SpA's current Interest Coverage is 4.95, which is 10% above median its own 10-year median of 4.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hera SpA stock overvalued right now?
Based on GuruFocus' analysis, Hera SpA (MEX:HERN) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN70.12, compared to a current price of MXN81.23 — trading 15.8% above its estimated fair value. The current Interest Coverage is 4.95, which is 10% above median its 10-year median of 4.51 and 31% above the Utilities - Regulated industry median of 3.78. Hera SpA's overall GF Score™ is 56/100 with 5 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 Hera SpA (MEX:HERN), the current Interest Coverage is 4.95 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 Hera SpA (MEX:HERN) Overvalued in 2026?
Based on GuruFocus' analysis, Hera SpA stock appears to be overvalued.
The current stock price of MXN81.23 is trading 15.8% above its estimated GF Value™ of MXN70.12.
GuruFocus considers Hera SpA to be Modestly Overvalued.
Key valuation signals for MEX:HERN:
Interest Coverage: 4.95 (10% above median its 10-year median of 4.51)
GF Value™: MXN70.12 vs. price of MXN81.23 (15.8% above fair value)
Industry Position: 31% above the Utilities - Regulated median (#187 of 449)
No single metric tells the full story. See the MEX:HERN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hera SpA is an Italian coalescence of municipally owned companies that manages the supply of energy, water and environmental services, as well as public lighting and telecommunications to citizens and businesses. The company operates mainly in Italy in the waste management (waste management and treatment), water (aqueduct, sewerage and purification) and energy (distribution and sale of electricity, gas and energy services) sectors; it also offers services for public lighting and telecommunications.
56GF Score
Get the complete analysis for MEX:HERN
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