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AlvotechOISE:ALVO -1.21%55 Interest Coverage is 0.24 as of Mar. 2026, which is 53% below its 10-year median of 0.51. GuruFocus rates OISE:ALVO with a GF Score™ of 55/100 and a GF Value™ of kr2,324.01 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 687 Drug Manufacturers companies, Alvotech ranks worse than 96.8% 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. Alvotech's
Operating Income
for the
three
months ended in Mar. 2026 was kr1,213 Mil. Alvotech's Interest Expense for the
three
months ended in Mar. 2026 was kr-5,117 Mil.
Alvotech's interest coverage for the quarter that ended in Mar. 2026 was 0.24.
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. Alvotechs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Alvotech's Interest Coverage or its related term are showing as below:
OISE:ALVO'
s Interest Coverage Range Over the Past 10 Years
Min: 0.45 Med: 0.51 Max: 0.57
Current: 0.54
OISE:ALVO's Interest Coverage is ranked worse than 96.8% of 687
companies
in the Drug Manufacturers industry
Industry Median: 12.75
vs OISE:ALVO: 0.54
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 .
Alvotech Interest Coverage Related Terms
Alvotech Interest Coverage Historical Data
* Premium members only.
The historical data trend for Alvotech'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.
OISE:ALVO vs PAHC, COLL, XERS: Interest Coverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Alvotech'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.
Alvotech Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Alvotech's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Alvotech'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.
Alvotech (OISE:ALVO) has a Interest Coverage of 0.24 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Alvotech and its competitors. This is 53% below median its historical median of 0.51. Over the past decade, Alvotech's Interest Coverage has ranged from 0.45 to 0.57. According to the industry distribution chart, Alvotech ranks #665 out of 687 companies in the Drug Manufacturers industry, placing it in the top 96.8%.
Is Alvotech's Interest Coverage too high?
Alvotech's current Interest Coverage of 0.24 is 53% below median its 10-year median of 0.51. Over the past 10 years, this metric has ranged from a low of 0.45 to a high of 0.57. The Drug Manufacturers industry median Interest Coverage is 12.75. Alvotech's value of 0.24 is 98.1% below this industry median. Based on the distribution chart, Alvotech ranks #665 out of 687 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Alvotech has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Alvotech's Interest Coverage compare to PAHC and COLL?
According to the Drug Manufacturers industry distribution chart, Alvotech ranks #665 out of 687 companies for Interest Coverage. This places Alvotech in the lower half of its industry. The industry median Interest Coverage is 12.75. Alvotech's value of 0.24 is 98.1% below this benchmark. Historically, Alvotech's own Interest Coverage has ranged from 0.45 to 0.57 over the past decade. While the company's 10-year median is 0.51 vs. the industry median of 12.75, Alvotech 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 12.75, based on 687 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. Alvotech's current Interest Coverage of 0.24 is 98.1% 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 Alvotech and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alvotech's current Interest Coverage is 0.24, which is 53% below median its own 10-year median of 0.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alvotech stock overvalued right now?
Based on GuruFocus' analysis, Alvotech (OISE:ALVO) is currently considered Possible Value Trap. The stock's GF Value™ is kr2,324.01, compared to a current price of kr409.00 — trading 82.4% below its estimated fair value. The current Interest Coverage is 0.24, which is 53% below median its 10-year median of 0.51 and 98.1% below the Drug Manufacturers industry median of 12.75. Alvotech's overall GF Score™ is 55/100 with 7 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 Alvotech (OISE:ALVO), the current Interest Coverage is 0.24 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 Alvotech (OISE:ALVO) Overvalued in 2026?
Based on GuruFocus' analysis, Alvotech stock appears to be undervalued.
The current stock price of kr409.00 is trading 82.4% below its estimated GF Value™ of kr2,324.01.
GuruFocus considers Alvotech to be Possible Value Trap.
Key valuation signals for OISE:ALVO:
Interest Coverage: 0.24 (53% below median its 10-year median of 0.51)
GF Value™: kr2,324.01 vs. price of kr409.00 (82.4% below fair value)
Industry Position: 98.1% below the Drug Manufacturers median (#665 of 687)
No single metric tells the full story. See the OISE:ALVO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alvotech is a biopharmaceutical company focused solely on the development and manufacture of biosimilar medicines for patients globally. Its purpose is to improve the health and quality of life of patients around the world by improving access to treatments for various diseases. The company's commercialized products incldue AVT02, AVT03, AVT04, AVT05, and AVT06. Its pipeline contains eight biosimilar candidates aimed at treating autoimmune disorders, eye disorders, osteoporosis, and cancer. Geographically, the company generates the majority of revenue from Europe, and the rest from the USA and the rest of the world.
55GF Score
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