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. New Zealand Energy's
Operating Income
for the
three
months ended in Sep. 2025 was $-0.78 Mil. New Zealand Energy's Interest Expense for the
three
months ended in Sep. 2025 was $-0.10 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for New Zealand Energy's Interest Coverage or its related term are showing as below:
NZERF's Interest Coverage is not ranked *
in the Oil & Gas industry.
Industry Median: 5.84 * Ranked among companies with meaningful Interest Coverage only.
New Zealand Energy (OTCPK:NZERF) 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 .
New Zealand Energy Interest Coverage Related Terms
New Zealand Energy Interest Coverage Historical Data
* Premium members only.
The historical data trend for New Zealand Energy'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.
NZERF vs COP, EOG, FANG: Interest Coverage Comparison
For the Oil & Gas E&P subindustry, New Zealand Energy'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.
New Zealand Energy Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, New Zealand Energy's Interest Coverage distribution charts can be found below:
* The bar in red indicates where New Zealand Energy'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:
New Zealand Energy did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
New Zealand Energy (NZERF) has a Interest Coverage of 0 (At Loss) as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on New Zealand Energy and its competitors. According to the industry distribution chart, New Zealand Energy ranks #999999 out of 728 companies in the Oil & Gas industry.
Is New Zealand Energy's Interest Coverage too high?
New Zealand Energy's current Interest Coverage is 0 (At Loss). Based on the distribution chart, New Zealand Energy ranks #999999 out of 728 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, New Zealand Energy has a GF Score™ of 29/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does New Zealand Energy's Interest Coverage compare to COP and EOG?
According to the Oil & Gas industry distribution chart, New Zealand Energy ranks #999999 out of 728 companies for Interest Coverage. This places New Zealand Energy in the lower half of its industry. The industry median Interest Coverage is 5.84. 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 Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.84, based on 728 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. 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 New Zealand Energy and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Zealand Energy's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Zealand Energy stock overvalued right now?
Based on GuruFocus' analysis, New Zealand Energy (NZERF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.05, compared to a current price of $0.28 — trading 461.2% above its estimated fair value. The current Interest Coverage is 0 (At Loss). New Zealand Energy's overall GF Score™ is 29/100 with 4 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 New Zealand Energy (NZERF), the current Interest Coverage is 0 (At Loss) as of Sep. 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 New Zealand Energy (NZERF) Overvalued in 2026?
Based on GuruFocus' analysis, New Zealand Energy stock appears to be overvalued.
The current stock price of $0.28 is trading 461.2% above its estimated GF Value™ of $0.05.
GuruFocus considers New Zealand Energy to be Significantly Overvalued.
Key valuation signals for NZERF:
Interest Coverage: 0 (At Loss)
GF Value™: $0.05 vs. price of $0.28 (461.2% above fair value)
No single metric tells the full story. See the NZERF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Zealand Energy Corp is engaged in the exploration and production of oil and natural gas, as well as the operation of midstream assets. The company conducts its business as a single operating segment being the acquisition, exploration, development, and production of conventional oil and natural gas resources. Geographically, it operates through the region of New Zealand. It generates a majority of its revenues from Oil sales.
29GF Score
Get the complete analysis for NZERF
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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