Pal HoldingsPHS:PAL -0.37%51 Interest Coverage is 3.48 as of Mar. 2026, which is 47% above its 10-year median of 2.36. GuruFocus rates PHS:PAL with a GF Score™ of 51/100 and a GF Value™ of ₱2.75 (Fairly Valued). The stock has 4 warning signs investors should review. Among 845 Transportation companies, Pal Holdings ranks worse than 76.92% 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. Pal Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was ₱6,358 Mil. Pal Holdings's Interest Expense for the
three
months ended in Mar. 2026 was ₱-1,825 Mil.
Pal Holdings's interest coverage for the quarter that ended in Mar. 2026 was 3.48.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Pal Holdings's Interest Coverage or its related term are showing as below:
PHS:PAL'
s Interest Coverage Range Over the Past 10 Years
Min: 0.24 Med: 2.36 Max: 3.22
Current: 2.28
PHS:PAL's Interest Coverage is ranked worse than 76.92% of 845
companies
in the Transportation industry
Industry Median: 5.66
vs PHS:PAL: 2.28
Pal Holdings (PHS:PAL) 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 .
Pal Holdings Interest Coverage Related Terms
Pal Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for Pal 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.
PHS:PAL vs DAL, UAL, LUV: Interest Coverage Comparison
For the Airlines subindustry, Pal 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.
Pal Holdings Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, Pal Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Pal 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.
Pal Holdings (PHS:PAL) has a Interest Coverage of 3.48 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Pal Holdings and its competitors. This is 47% above median its historical median of 2.36. Over the past decade, Pal Holdings' Interest Coverage has ranged from 0.24 to 3.22. According to the industry distribution chart, Pal Holdings ranks #650 out of 845 companies in the Transportation industry, placing it in the top 76.9%.
Is Pal Holdings' Interest Coverage too high?
Pal Holdings' current Interest Coverage of 3.48 is 47% above median its 10-year median of 2.36. Over the past 10 years, this metric has ranged from a low of 0.24 to a high of 3.22. The Transportation industry median Interest Coverage is 5.66. Pal Holdings' value of 3.48 is 38.5% below this industry median. Based on the distribution chart, Pal Holdings ranks #650 out of 845 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Pal Holdings has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pal Holdings' Interest Coverage compare to DAL and UAL?
According to the Transportation industry distribution chart, Pal Holdings ranks #650 out of 845 companies for Interest Coverage. This places Pal Holdings in the lower half of its industry. The industry median Interest Coverage is 5.66. Pal Holdings' value of 3.48 is 38.5% below this benchmark. Historically, Pal Holdings' own Interest Coverage has ranged from 0.24 to 3.22 over the past decade. While the company's 10-year median is 2.36 vs. the industry median of 5.66, Pal 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 Transportation company?
The median Interest Coverage among Transportation companies is 5.66, based on 845 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. Pal Holdings's current Interest Coverage of 3.48 is 38.5% 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 Pal Holdings and its competitors. For the Transportation industry, the median Interest Coverage is 5.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pal Holdings's current Interest Coverage is 3.48, which is 47% above median its own 10-year median of 2.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pal Holdings stock overvalued right now?
Based on GuruFocus' analysis, Pal Holdings (PHS:PAL) is currently considered Fairly Valued. The stock's GF Value™ is ₱2.75, compared to a current price of ₱2.70 — trading 1.8% below its estimated fair value. The current Interest Coverage is 3.48, which is 47% above median its 10-year median of 2.36 and 38.5% below the Transportation industry median of 5.66. Pal Holdings' overall GF Score™ is 51/100 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 Pal Holdings (PHS:PAL), the current Interest Coverage is 3.48 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 Pal Holdings (PHS:PAL) Overvalued in 2026?
Based on GuruFocus' analysis, Pal Holdings stock appears to be undervalued.
The current stock price of ₱2.70 is trading 1.8% below its estimated GF Value™ of ₱2.75.
GuruFocus considers Pal Holdings to be Fairly Valued.
Key valuation signals for PHS:PAL:
Interest Coverage: 3.48 (47% above median its 10-year median of 2.36)
GF Value™: ₱2.75 vs. price of ₱2.70 (1.8% below fair value)
Industry Position: 38.5% below the Transportation median (#650 of 845)
No single metric tells the full story. See the PHS:PAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pal Holdings Inc through its subsidiaries, is engaged in air transport of passengers and cargo within the Philippines and between the Philippines and several international destinations. Its revenues are mainly derived from rendering transportation services, and all sales are made to external customers.
51GF Score
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