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. Pact Group Holdings's
Operating Income
for the
six
months ended in Dec. 2025 was $40 Mil. Pact Group Holdings's Interest Expense for the
six
months ended in Dec. 2025 was $-46 Mil.
Pact Group Holdings's interest coverage for the quarter that ended in Dec. 2025 was 0.87.
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. Pact Group Holdings Ltds 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 Pact Group Holdings's Interest Coverage or its related term are showing as below:
PCTGY'
s Interest Coverage Range Over the Past 10 Years
Min: 0.99 Med: 2.9 Max: 5.67
Current: 0.99
PCTGY's Interest Coverage is not ranked
in the Packaging & Containers industry.
Industry Median: 6.055
vs PCTGY: 0.99
Pact Group Holdings (OTCPK:PCTGY) 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 .
Pact Group Holdings Interest Coverage Related Terms
Pact Group Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for Pact Group Holdings'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.
PCTGY vs IP, SW, AMCR: Interest Coverage Comparison
For the Packaging & Containers subindustry, Pact Group Holdings'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.
Pact Group Holdings Interest Coverage vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Pact Group Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Pact Group Holdings'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.
Pact Group Holdings (PCTGY) has a Interest Coverage of 0.87 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Pact Group Holdings and its competitors. This is 70% below median its historical median of 2.90. Over the past decade, Pact Group Holdings' Interest Coverage has ranged from 0.99 to 5.67.
Is Pact Group Holdings' Interest Coverage too high?
Pact Group Holdings' current Interest Coverage of 0.87 is 70% below median its 10-year median of 2.90. Over the past 10 years, this metric has ranged from a low of 0.99 to a high of 5.67. The Packaging & Containers industry median Interest Coverage is 6.06. Pact Group Holdings' value of 0.87 is 85.6% below this industry median. Overall, Pact Group Holdings has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Pact Group Holdings' Interest Coverage compare to IP and SW?
Pact Group Holdings' Interest Coverage of 0.87 can be compared against companies in the Packaging & Containers industry. The industry median Interest Coverage is 6.06. Pact Group Holdings' value of 0.87 is 85.6% below this benchmark. Historically, Pact Group Holdings' own Interest Coverage has ranged from 0.99 to 5.67 over the past decade. While the company's 10-year median is 2.90 vs. the industry median of 6.06, Pact Group Holdings 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 Packaging & Containers company?
The median Interest Coverage among Packaging & Containers companies is 6.06, based on 316 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. Pact Group Holdings's current Interest Coverage of 0.87 is 85.6% 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 Pact Group Holdings and its competitors. For the Packaging & Containers industry, the median Interest Coverage is 6.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pact Group Holdings's current Interest Coverage is 0.87, which is 70% below median its own 10-year median of 2.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pact Group Holdings stock overvalued right now?
Pact Group Holdings (PCTGY) has a current Interest Coverage of 0.87. The stock's GF Value™ is $7.63, compared to a current price of $6.37 — trading 16.5% below its estimated fair value. The current Interest Coverage is 0.87, which is 70% below median its 10-year median of 2.90 and 85.6% below the Packaging & Containers industry median of 6.06. Pact Group Holdings' overall GF Score™ is 20/100 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 Pact Group Holdings (PCTGY), the current Interest Coverage is 0.87 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 Pact Group Holdings (PCTGY) Overvalued in 2026?
Based on GuruFocus' analysis, Pact Group Holdings stock appears to be undervalued.
The current stock price of $6.37 is trading 16.5% below its estimated GF Value™ of $7.63.
Key valuation signals for PCTGY:
Interest Coverage: 0.87 (70% below median its 10-year median of 2.90)
GF Value™: $7.63 vs. price of $6.37 (16.5% below fair value)
Industry Position: 85.6% below the Packaging & Containers median
No single metric tells the full story. See the PCTGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pact Group Holdings Ltd is a rigid packaging plastics manufacturer in Australia and New Zealand. The company has three operating segments that includes Packaging and sustainability, Materials Handling & Pooling, and Contract Manufacturing. The majority of its revenue is generated from the Packaging and sustainability segment.
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