Colonial Motor CoNZSE:CMO +1.40%64 Interest Coverage is 3.66 as of Dec. 2025, which is 50% below its 10-year median of 7.35. GuruFocus rates NZSE:CMO with a GF Score™ of 64/100 and a GF Value™ of NZ$8.56 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,067 Vehicles & Parts companies, Colonial Motor Co ranks worse than 68.79% 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. Colonial Motor Co's
Operating Income
for the
six
months ended in Dec. 2025 was NZ$20 Mil. Colonial Motor Co's Interest Expense for the
six
months ended in Dec. 2025 was NZ$-5 Mil.
Colonial Motor Co's interest coverage for the quarter that ended in Dec. 2025 was 3.66.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Colonial Motor Co's Interest Coverage or its related term are showing as below:
NZSE:CMO'
s Interest Coverage Range Over the Past 10 Years
Min: 2.66 Med: 7.35 Max: 13.57
Current: 3.51
NZSE:CMO's Interest Coverage is ranked worse than 68.79% of 1067
companies
in the Vehicles & Parts industry
Industry Median: 8.31
vs NZSE:CMO: 3.51
Colonial Motor Co (NZSE:CMO) 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 .
Colonial Motor Co Interest Coverage Related Terms
Colonial Motor Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Colonial Motor Co'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.
NZSE:CMO vs CVNA, PAG, ALTB: Interest Coverage Comparison
For the Auto & Truck Dealerships subindustry, Colonial Motor Co'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.
Colonial Motor Co Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Colonial Motor Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Colonial Motor Co'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.
Colonial Motor Co (NZSE:CMO) has a Interest Coverage of 3.66 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Colonial Motor Co and its competitors. This is 50% below median its historical median of 7.35. Over the past decade, Colonial Motor Co's Interest Coverage has ranged from 2.66 to 13.57. According to the industry distribution chart, Colonial Motor Co ranks #734 out of 1067 companies in the Vehicles & Parts industry, placing it in the top 68.8%.
Is Colonial Motor Co's Interest Coverage too high?
Colonial Motor Co's current Interest Coverage of 3.66 is 50% below median its 10-year median of 7.35. Over the past 10 years, this metric has ranged from a low of 2.66 to a high of 13.57. The Vehicles & Parts industry median Interest Coverage is 8.31. Colonial Motor Co's value of 3.66 is 56% below this industry median. Based on the distribution chart, Colonial Motor Co ranks #734 out of 1067 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Colonial Motor Co has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Colonial Motor Co's Interest Coverage compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Colonial Motor Co ranks #734 out of 1067 companies for Interest Coverage. This places Colonial Motor Co in the lower half of its industry. The industry median Interest Coverage is 8.31. Colonial Motor Co's value of 3.66 is 56% below this benchmark. Historically, Colonial Motor Co's own Interest Coverage has ranged from 2.66 to 13.57 over the past decade. While the company's 10-year median is 7.35 vs. the industry median of 8.31, Colonial Motor Co 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.31, based on 1,067 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. Colonial Motor Co's current Interest Coverage of 3.66 is 56% 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 Colonial Motor Co and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Colonial Motor Co's current Interest Coverage is 3.66, which is 50% below median its own 10-year median of 7.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Colonial Motor Co stock overvalued right now?
Based on GuruFocus' analysis, Colonial Motor Co (NZSE:CMO) is currently considered Modestly Undervalued. The stock's GF Value™ is NZ$8.56, compared to a current price of NZ$7.25 — trading 15.3% below its estimated fair value. The current Interest Coverage is 3.66, which is 50% below median its 10-year median of 7.35 and 56% below the Vehicles & Parts industry median of 8.31. Colonial Motor Co's overall GF Score™ is 64/100 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 Colonial Motor Co (NZSE:CMO), the current Interest Coverage is 3.66 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 Colonial Motor Co (NZSE:CMO) Overvalued in 2026?
Based on GuruFocus' analysis, Colonial Motor Co stock appears to be undervalued.
The current stock price of NZ$7.25 is trading 15.3% below its estimated GF Value™ of NZ$8.56.
GuruFocus considers Colonial Motor Co to be Modestly Undervalued.
Key valuation signals for NZSE:CMO:
Interest Coverage: 3.66 (50% below median its 10-year median of 7.35)
GF Value™: NZ$8.56 vs. price of NZ$7.25 (15.3% below fair value)
Industry Position: 56% below the Vehicles & Parts median (#734 of 1067)
No single metric tells the full story. See the NZSE:CMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Colonial Motor Co Ltd is a New Zealand-based company engaged in the principal activity of operating franchised motor vehicle dealerships. It owns motor vehicle dealerships throughout the country and has dealerships selling heavy trucks and tractors. The company has many dealerships and has a primary focus on Ford. Also, the company provides administrative and financial services to the subsidiaries as well as leasing them at market rates for many of the properties. Substantial revenue is generated from the sale of goods.
64GF Score
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