The Swatch Group AGSWGAF 71 Interest Coverage is 22.33 as of Dec. 2025, which is 90% below its 10-year median of 217.50. GuruFocus rates SWGAF with a GF Score™ of 71/100 and a GF Value™ of $171.66 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 828 Retail - Cyclical companies, The Swatch Group AG ranks better than 78.74% 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. The Swatch Group AG's
Operating Income
for the
six
months ended in Dec. 2025 was $84 Mil. The Swatch Group AG's Interest Expense for the
six
months ended in Dec. 2025 was $-4 Mil.
The Swatch Group AG's interest coverage for the quarter that ended in Dec. 2025 was 22.33.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for The Swatch Group AG's Interest Coverage or its related term are showing as below:
SWGAF'
s Interest Coverage Range Over the Past 10 Years
Min: 17.33 Med: 217.5 Max: 386
Current: 33.75
SWGAF's Interest Coverage is ranked better than 78.74% of 828
companies
in the Retail - Cyclical industry
Industry Median: 7.915
vs SWGAF: 33.75
The Swatch Group AG (OTCPK:SWGAF) 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 .
The Swatch Group AG Interest Coverage Related Terms
The Swatch Group AG Interest Coverage Historical Data
* Premium members only.
The historical data trend for The Swatch Group AG'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.
For the Luxury Goods subindustry, The Swatch Group AG'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.
The Swatch Group AG Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Swatch Group AG's Interest Coverage distribution charts can be found below:
* The bar in red indicates where The Swatch Group AG'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.
The Swatch Group AG (SWGAF) has a Interest Coverage of 22.33 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on The Swatch Group AG and its competitors. This is 90% below median its historical median of 217.50. Over the past decade, The Swatch Group AG's Interest Coverage has ranged from 17.33 to 386.00. According to the industry distribution chart, The Swatch Group AG ranks #176 out of 828 companies in the Retail - Cyclical industry, placing it in the top 21.3%.
Is The Swatch Group AG's Interest Coverage too high?
The Swatch Group AG's current Interest Coverage of 22.33 is 90% below median its 10-year median of 217.50. Over the past 10 years, this metric has ranged from a low of 17.33 to a high of 386.00. The Retail - Cyclical industry median Interest Coverage is 7.92. The Swatch Group AG's value of 22.33 is 182.1% above this industry median. Based on the distribution chart, The Swatch Group AG ranks #176 out of 828 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, The Swatch Group AG has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Swatch Group AG's Interest Coverage compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, The Swatch Group AG ranks #176 out of 828 companies for Interest Coverage. This places The Swatch Group AG in the top 21% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 7.92. The Swatch Group AG's value of 22.33 is 182.1% above this benchmark. Historically, The Swatch Group AG's own Interest Coverage has ranged from 17.33 to 386.00 over the past decade. While the company's 10-year median is 217.50 vs. the industry median of 7.92, The Swatch Group AG 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 Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.92, based on 828 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. The Swatch Group AG's current Interest Coverage of 22.33 is 182.1% 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 The Swatch Group AG and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Swatch Group AG's current Interest Coverage is 22.33, which is 90% below median its own 10-year median of 217.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Swatch Group AG stock overvalued right now?
Based on GuruFocus' analysis, The Swatch Group AG (SWGAF) is currently considered Significantly Overvalued. The stock's GF Value™ is $171.66, compared to a current price of $257.43 — trading 50% above its estimated fair value. The current Interest Coverage is 22.33, which is 90% below median its 10-year median of 217.50 and 182.1% above the Retail - Cyclical industry median of 7.92. The Swatch Group AG's overall GF Score™ is 71/100 with 10 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 The Swatch Group AG (SWGAF), the current Interest Coverage is 22.33 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 The Swatch Group AG (SWGAF) Overvalued in 2026?
Based on GuruFocus' analysis, The Swatch Group AG stock appears to be overvalued.
The current stock price of $257.43 is trading 50% above its estimated GF Value™ of $171.66.
GuruFocus considers The Swatch Group AG to be Significantly Overvalued.
Key valuation signals for SWGAF:
Interest Coverage: 22.33 (90% below median its 10-year median of 217.50)
GF Value™: $171.66 vs. price of $257.43 (50% above fair value)
Industry Position: 182.1% above the Retail - Cyclical median (#176 of 828)
No single metric tells the full story. See the SWGAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Swatch Group's biggest brands are Omega (number two or three in its category), Breguet, Tissot (the leader in midrange Swiss watches), and Swatch. The company employs over 32,000 people, half of them in Switzerland. We estimate Omega and Longines to be the group's most profitable brands.
71GF Score
Get the complete analysis for SWGAF
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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