Mercury NZMGHTF +8.44%78 Interest Coverage is 7.35 as of Dec. 2025, which is 112% above its 10-year median of 3.47. GuruFocus rates MGHTF with a GF Score™ of 78/100 and a GF Value™ of $4.06 (Fairly Valued). The stock has 11 warning signs investors should review. Among 320 Utilities - Independent Power Producers companies, Mercury NZ ranks better than 65.94% 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. Mercury NZ's
Operating Income
for the
six
months ended in Dec. 2025 was $208 Mil. Mercury NZ's Interest Expense for the
six
months ended in Dec. 2025 was $-28 Mil.
Mercury NZ's interest coverage for the quarter that ended in Dec. 2025 was 7.35.
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. Mercury NZ Ltd interest coverage is 4.82, which is low.
The historical rank and industry rank for Mercury NZ's Interest Coverage or its related term are showing as below:
MGHTF'
s Interest Coverage Range Over the Past 10 Years
Min: 1.96 Med: 3.47 Max: 4.82
Current: 4.82
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 .
Mercury NZ Interest Coverage Related Terms
Mercury NZ Interest Coverage Historical Data
* Premium members only.
The historical data trend for Mercury NZ'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 - Renewable subindustry, Mercury NZ'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.
Mercury NZ Interest Coverage vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Mercury NZ's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Mercury NZ'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.
Mercury NZ (MGHTF) has a Interest Coverage of 7.35 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Mercury NZ and its competitors. This is 112% above median its historical median of 3.47. Over the past decade, Mercury NZ's Interest Coverage has ranged from 1.96 to 4.82. According to the industry distribution chart, Mercury NZ ranks #109 out of 320 companies in the Utilities - Independent Power Producers industry, placing it in the top 34.1%.
Is Mercury NZ's Interest Coverage too high?
Mercury NZ's current Interest Coverage of 7.35 is 112% above median its 10-year median of 3.47. Over the past 10 years, this metric has ranged from a low of 1.96 to a high of 4.82. The Utilities - Independent Power Producers industry median Interest Coverage is 2.95. Mercury NZ's value of 7.35 is 149.2% above this industry median. Based on the distribution chart, Mercury NZ ranks #109 out of 320 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Mercury NZ has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Mercury NZ's Interest Coverage compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Mercury NZ ranks #109 out of 320 companies for Interest Coverage. This puts Mercury NZ in the upper half of its industry. The industry median Interest Coverage is 2.95. Mercury NZ's value of 7.35 is 149.2% above this benchmark. Historically, Mercury NZ's own Interest Coverage has ranged from 1.96 to 4.82 over the past decade. While the company's 10-year median is 3.47 vs. the industry median of 2.95, Mercury NZ 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 - Independent Power Producers company?
The median Interest Coverage among Utilities - Independent Power Producers companies is 2.95, based on 320 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. Mercury NZ's current Interest Coverage of 7.35 is 149.2% 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 Mercury NZ and its competitors. For the Utilities - Independent Power Producers industry, the median Interest Coverage is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercury NZ's current Interest Coverage is 7.35, which is 112% above median its own 10-year median of 3.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercury NZ stock overvalued right now?
Based on GuruFocus' analysis, Mercury NZ (MGHTF) is currently considered Fairly Valued. The stock's GF Value™ is $4.06, compared to a current price of $4.37 — trading 7.6% above its estimated fair value. The current Interest Coverage is 7.35, which is 112% above median its 10-year median of 3.47 and 149.2% above the Utilities - Independent Power Producers industry median of 2.95. Mercury NZ's overall GF Score™ is 78/100 with 11 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 Mercury NZ (MGHTF), the current Interest Coverage is 7.35 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 Mercury NZ (MGHTF) Overvalued in 2026?
Based on GuruFocus' analysis, Mercury NZ stock appears to be overvalued.
The current stock price of $4.37 is trading 7.6% above its estimated GF Value™ of $4.06.
GuruFocus considers Mercury NZ to be Fairly Valued.
Key valuation signals for MGHTF:
Interest Coverage: 7.35 (112% above median its 10-year median of 3.47)
GF Value™: $4.06 vs. price of $4.37 (7.6% above fair value)
Industry Position: 149.2% above the Utilities - Independent Power Producers median (#109 of 320)
No single metric tells the full story. See the MGHTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercury NZ (formerly Mighty River Power) generates more than 15% of New Zealand's electricity and is one of the four major electricity generators and suppliers in the country. All electricity is generated from renewable sources, which makes it one of the lowest-cost providers of electricity. The company operates nine hydro stations and five geothermal power plants in the North Island and some wind farms. Mercury sells electricity to residential and commercial customers and has the largest share of the key Auckland market.
78GF Score
Get the complete analysis for MGHTF
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MGHTF has been successfully added to your 
