Recordati SpA (MEX:RECN) Interest Coverage: 9.67 (As of Mar. 2026) — 59% Below Median


MEX:RECN Recordati SpA MEX:RECN
71 GF Score
Price MXN1,019.79
GF Value MXN1,150.22
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Recordati SpA Interest Coverage?

Recordati SpA MEX:RECN 71 Interest Coverage is 9.67 as of Mar. 2026, which is 59% below its 10-year median of 23.53. GuruFocus rates MEX:RECN with a GF Score™ of 71/100 and a GF Value™ of MXN1,150.22 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 685 Drug Manufacturers companies, Recordati SpA ranks worse than 59.27% 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. Recordati SpA's Operating Income for the three months ended in Mar. 2026 was MXN4,829 Mil. Recordati SpA's Interest Expense for the three months ended in Mar. 2026 was MXN-499 Mil. Recordati SpA's interest coverage for the quarter that ended in Mar. 2026 was 9.67. The higher the ratio, the stronger the company's financial strength is.

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

MEX:RECN' s Interest Coverage Range Over the Past 10 Years
Min: 7.25   Med: 23.53   Max: 31.34
Current: 7.79


MEX:RECN's Interest Coverage is ranked worse than
59.27% of 685 companies
in the Drug Manufacturers industry
Industry Median: 12.78 vs MEX:RECN: 7.79

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


Recordati SpA  (MEX:RECN) 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 .


Recordati SpA Interest Coverage Related Terms


Recordati SpA Interest Coverage Historical Data

* Premium members only.

The historical data trend for Recordati 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.

Recordati SpA Interest Coverage Chart

Recordati SpA 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 29.00 15.37 7.56 8.09 7.25

Recordati SpA Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 7.47 6.14 7.79 7.60 9.67

MEX:RECN vs LLY, JNJ, ABBV: Interest Coverage Comparison

For the Drug Manufacturers - General subindustry, Recordati 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.


Recordati SpA Interest Coverage vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Recordati SpA's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Recordati SpA's Interest Coverage falls into.


MEX:RECN
71GF Score
Recordati SpA MEX:RECN
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Recordati SpA 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.

Recordati SpA'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, Recordati SpA's Interest Expense was MXN-2,093 Mil. Its Operating Income was MXN15,175 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN44,915 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*15174.947/-2093.363
=7.25

Recordati SpA's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Recordati SpA's Interest Expense was MXN-499 Mil. Its Operating Income was MXN4,829 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN36,630 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*4829.095/-499.412
=9.67

* 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 9.67 mean?
Recordati SpA (MEX:RECN) has a Interest Coverage of 9.67 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Recordati SpA and its competitors. This is 59% below median its historical median of 23.53. Over the past decade, Recordati SpA's Interest Coverage has ranged from 7.25 to 31.34. According to the industry distribution chart, Recordati SpA ranks #406 out of 685 companies in the Drug Manufacturers industry, placing it in the top 59.3%.
Is Recordati SpA's Interest Coverage too high?
Recordati SpA's current Interest Coverage of 9.67 is 59% below median its 10-year median of 23.53. Over the past 10 years, this metric has ranged from a low of 7.25 to a high of 31.34. The Drug Manufacturers industry median Interest Coverage is 12.78. Recordati SpA's value of 9.67 is 24.3% below this industry median. Based on the distribution chart, Recordati SpA ranks #406 out of 685 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Recordati SpA has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Recordati SpA's Interest Coverage compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Recordati SpA ranks #406 out of 685 companies for Interest Coverage. This places Recordati SpA in the lower half of its industry. The industry median Interest Coverage is 12.78. Recordati SpA's value of 9.67 is 24.3% below this benchmark. Historically, Recordati SpA's own Interest Coverage has ranged from 7.25 to 31.34 over the past decade. While the company's 10-year median is 23.53 vs. the industry median of 12.78, Recordati SpA 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.78, based on 685 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. Recordati SpA's current Interest Coverage of 9.67 is 24.3% 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 Recordati SpA and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Recordati SpA's current Interest Coverage is 9.67, which is 59% below median its own 10-year median of 23.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Recordati SpA stock overvalued right now?
Based on GuruFocus' analysis, Recordati SpA (MEX:RECN) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN1,150.22, compared to a current price of MXN1,019.79 — trading 11.3% below its estimated fair value. The current Interest Coverage is 9.67, which is 59% below median its 10-year median of 23.53 and 24.3% below the Drug Manufacturers industry median of 12.78. Recordati SpA's overall GF Score™ is 71/100 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 Recordati SpA (MEX:RECN), the current Interest Coverage is 9.67 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 Recordati SpA (MEX:RECN) Overvalued in 2026?

Based on GuruFocus' analysis, Recordati SpA stock appears to be undervalued. The current stock price of MXN1,019.79 is trading 11.3% below its estimated GF Value™ of MXN1,150.22. GuruFocus considers Recordati SpA to be Modestly Undervalued.

Key valuation signals for MEX:RECN:

  • Interest Coverage: 9.67 (59% below median its 10-year median of 23.53)
  • GF Value™: MXN1,150.22 vs. price of MXN1,019.79 (11.3% below fair value)
  • GF Score™: 71/100 with 3 warning signs
  • Industry Position: 24.3% below the Drug Manufacturers median (#406 of 685)

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


Recordati SpA Business Description

Address Via Matteo Civitali 1, MIlan, ITA, 20148
Recordati SpA is engaged in the development, production, and marketing of pharmaceutical products or of pharmaceutical chemicals. The Company operates in a broad and diverse context, which includes general medicine, specialist medicine, self-medication, and rare diseases. In addition, it is also active in the field of urology, with treatments for benign prostatic hyperplasia and male functional disorders, and in psychiatry. The Company's only operating segment is the Specialty & Primary Care segment. Its geographic areas are Europe, Australasia, America, and Africa.
71GF Score

Get the complete analysis for MEX:RECN

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

MXN1,019.79
Price
MXN1,150.22
GF Value