Smithfield FoodsSFD -1.09%30 Interest Coverage is 41.38 as of Mar. 2026, which is 655% above its 10-year median of 5.48. GuruFocus rates SFD with a GF Score™ of 30/100. The stock has 2 warning signs investors should review. Among 1,511 Consumer Packaged Goods companies, Smithfield Foods ranks better than 72.47% 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. Smithfield Foods's
Operating Income
for the
three
months ended in Mar. 2026 was $331 Mil. Smithfield Foods's Interest Expense for the
three
months ended in Mar. 2026 was $-8 Mil.
Smithfield Foods's interest coverage for the quarter that ended in Mar. 2026 was 41.38.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Smithfield Foods's Interest Coverage or its related term are showing as below:
SFD'
s Interest Coverage Range Over the Past 10 Years
Min: 2.99 Med: 5.48 Max: 34.5
Current: 34.5
SFD's Interest Coverage is ranked better than 72.47% of 1511
companies
in the Consumer Packaged Goods industry
Industry Median: 8.63
vs SFD: 34.50
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 .
Smithfield Foods Interest Coverage Related Terms
Smithfield Foods Interest Coverage Historical Data
* Premium members only.
The historical data trend for Smithfield Foods'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.
SFD vs DAR, SJM, MKC: Interest Coverage Comparison
For the Packaged Foods subindustry, Smithfield Foods'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.
Smithfield Foods Interest Coverage vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Smithfield Foods's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Smithfield Foods'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.
Smithfield Foods (SFD) has a Interest Coverage of 41.38 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Smithfield Foods and its competitors. This is 655% above median its historical median of 5.48. Over the past decade, Smithfield Foods' Interest Coverage has ranged from 2.99 to 34.50. According to the industry distribution chart, Smithfield Foods ranks #416 out of 1511 companies in the Consumer Packaged Goods industry, placing it in the top 27.5%.
Is Smithfield Foods' Interest Coverage too high?
Smithfield Foods' current Interest Coverage of 41.38 is 655% above median its 10-year median of 5.48. Over the past 10 years, this metric has ranged from a low of 2.99 to a high of 34.50. The Consumer Packaged Goods industry median Interest Coverage is 8.63. Smithfield Foods' value of 41.38 is 379.5% above this industry median. Based on the distribution chart, Smithfield Foods ranks #416 out of 1511 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Smithfield Foods has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Smithfield Foods' Interest Coverage compare to DAR and SJM?
According to the Consumer Packaged Goods industry distribution chart, Smithfield Foods ranks #416 out of 1511 companies for Interest Coverage. This puts Smithfield Foods in the upper half of its industry. The industry median Interest Coverage is 8.63. Smithfield Foods' value of 41.38 is 379.5% above this benchmark. Historically, Smithfield Foods' own Interest Coverage has ranged from 2.99 to 34.50 over the past decade. While the company's 10-year median is 5.48 vs. the industry median of 8.63, Smithfield Foods has consistently been above 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 Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.63, based on 1,511 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. Smithfield Foods's current Interest Coverage of 41.38 is 379.5% above 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 Smithfield Foods and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smithfield Foods's current Interest Coverage is 41.38, which is 655% above median its own 10-year median of 5.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smithfield Foods stock overvalued right now?
Smithfield Foods (SFD) has a current Interest Coverage of 41.38. The current Interest Coverage is 41.38, which is 655% above median its 10-year median of 5.48 and 379.5% above the Consumer Packaged Goods industry median of 8.63. Smithfield Foods' overall GF Score™ is 30/100 with 2 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 Smithfield Foods (SFD), the current Interest Coverage is 41.38 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.
Smithfield Foods Inc is a hog producer and pork processor based in the United States of America. The company conducts its operations through three reportable segments: Packaged Meats, Fresh Pork, and Hog Production. The company generates the maximum of its revenue from the Packaged Meats segment. The Packaged Meats segment consists of the company's U.S. operations that process fresh meat into a wide variety of packaged meats products, including bacon, sausage, hot dogs, deli and lunch meats, dry sausage products (such as pepperoni and genoa), ham products, ready-to-eat products and prepared foods (such as pre-cooked entrees, bacon and sausage).
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