Sandoz Group AGMEX:SDZN 16 Interest Coverage is 7.55 as of Dec. 2025, which is 81% above its 10-year median of 4.17. GuruFocus rates MEX:SDZN with a GF Score™ of 16/100. The stock has 6 warning signs investors should review. Among 685 Drug Manufacturers companies, Sandoz Group AG ranks worse than 64.09% 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. Sandoz Group AG's
Operating Income
for the
six
months ended in Dec. 2025 was MXN14,819 Mil. Sandoz Group AG's Interest Expense for the
six
months ended in Dec. 2025 was MXN-1,963 Mil.
Sandoz Group AG's interest coverage for the quarter that ended in Dec. 2025 was 7.55.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Sandoz Group AG's Interest Coverage or its related term are showing as below:
MEX:SDZN'
s Interest Coverage Range Over the Past 10 Years
Min: 1.22 Med: 4.17 Max: 13.92
Current: 6.47
MEX:SDZN's Interest Coverage is ranked worse than 64.09% of 685
companies
in the Drug Manufacturers industry
Industry Median: 12.78
vs MEX:SDZN: 6.47
Sandoz Group AG (MEX:SDZN) 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 .
Sandoz Group AG Interest Coverage Related Terms
Sandoz Group AG Interest Coverage Historical Data
* Premium members only.
The historical data trend for Sandoz Group 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.
MEX:SDZN vs ZTS, UTHR, VTRS: Interest Coverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Sandoz Group 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.
Sandoz Group AG Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sandoz Group AG's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Sandoz Group AG'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.
Sandoz Group AG (MEX:SDZN) has a Interest Coverage of 7.55 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sandoz Group AG and its competitors. This is 81% above median its historical median of 4.17. Over the past decade, Sandoz Group AG's Interest Coverage has ranged from 1.22 to 13.92. According to the industry distribution chart, Sandoz Group AG ranks #439 out of 685 companies in the Drug Manufacturers industry, placing it in the top 64.1%.
Is Sandoz Group AG's Interest Coverage too high?
Sandoz Group AG's current Interest Coverage of 7.55 is 81% above median its 10-year median of 4.17. Over the past 10 years, this metric has ranged from a low of 1.22 to a high of 13.92. The Drug Manufacturers industry median Interest Coverage is 12.78. Sandoz Group AG's value of 7.55 is 40.9% below this industry median. Based on the distribution chart, Sandoz Group AG ranks #439 out of 685 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Sandoz Group AG has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Sandoz Group AG's Interest Coverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Sandoz Group AG ranks #439 out of 685 companies for Interest Coverage. This places Sandoz Group AG in the lower half of its industry. The industry median Interest Coverage is 12.78. Sandoz Group AG's value of 7.55 is 40.9% below this benchmark. Historically, Sandoz Group AG's own Interest Coverage has ranged from 1.22 to 13.92 over the past decade. While the company's 10-year median is 4.17 vs. the industry median of 12.78, Sandoz Group AG 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. Sandoz Group AG's current Interest Coverage of 7.55 is 40.9% 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 Sandoz Group AG 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. Sandoz Group AG's current Interest Coverage is 7.55, which is 81% above median its own 10-year median of 4.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sandoz Group AG stock overvalued right now?
Sandoz Group AG (MEX:SDZN) has a current Interest Coverage of 7.55. The current Interest Coverage is 7.55, which is 81% above median its 10-year median of 4.17 and 40.9% below the Drug Manufacturers industry median of 12.78. Sandoz Group AG's overall GF Score™ is 16/100 with 6 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 Sandoz Group AG (MEX:SDZN), the current Interest Coverage is 7.55 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.
Sandoz is one of the largest generic pharmaceutical manufacturers in the world, generating over $11 billion annually from off-patent drugs. Once part of Novartis, Sandoz spun off and went public in October 2023. Generics, including small molecules and complex injectables, make up roughly 75% of Sandoz's total sales, and the firm has a significant presence in Europe, the United States, and other key international markets. Sandoz generates its remaining sales from biosimilars and is among the leaders in the space. Sandoz launched Europe's first biosimilar, Omnitrope, in 2006, as well as the first US biosimilar, Zarxio, in 2015. It has over 10 launched biosimilars in a number of markets and over 20 assets in its pipeline.
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