Richards Group (TSX:RIC) Interest Coverage: 5.90 (As of Mar. 2026) — 81% Below Median


TSX:RIC Richards Group Inc TSX:RIC
72 GF Score
Price C$27.90
GF Value C$32.90
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Richards Group Interest Coverage?

Richards Group TSX:RIC +0.36% 72 Interest Coverage is 5.90 as of Mar. 2026, which is 81% below its 10-year median of 30.36. GuruFocus rates TSX:RIC with a GF Score™ of 72/100 and a GF Value™ of C$32.90 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 316 Packaging & Containers companies, Richards Group ranks better than 54.11% 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. Richards Group's Operating Income for the three months ended in Mar. 2026 was C$10.5 Mil. Richards Group's Interest Expense for the three months ended in Mar. 2026 was C$-1.8 Mil. Richards Group's interest coverage for the quarter that ended in Mar. 2026 was 5.90. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Richards Group's Interest Coverage or its related term are showing as below:

TSX:RIC' s Interest Coverage Range Over the Past 10 Years
Min: 7.89   Med: 30.36   Max: 47.66
Current: 7.89


TSX:RIC's Interest Coverage is ranked better than
54.11% of 316 companies
in the Packaging & Containers industry
Industry Median: 6.055 vs TSX:RIC: 7.89

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Richards Group  (TSX:RIC) 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 .


Richards Group Interest Coverage Related Terms


Richards Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for Richards Group'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.

Richards Group Interest Coverage Chart

Richards Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.39 14.04 13.71 30.32 8.80

Richards Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.30 9.70 6.72 10.35 5.90

TSX:RIC vs SW, PKG, AMCR: Interest Coverage Comparison

For the Packaging & Containers subindustry, Richards Group'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.


Richards Group Interest Coverage vs Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Richards Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Richards Group's Interest Coverage falls into.


TSX:RIC
72GF Score
Richards Group Inc TSX:RIC
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Richards Group Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Richards Group's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Richards Group's Interest Expense was C$-5.0 Mil. Its Operating Income was C$43.6 Mil. And its Long-Term Debt & Capital Lease Obligation was C$81.4 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*43.625/-4.955
=8.80

Richards Group's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Richards Group's Interest Expense was C$-1.8 Mil. Its Operating Income was C$10.5 Mil. And its Long-Term Debt & Capital Lease Obligation was C$101.6 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*10.503/-1.779
=5.90

* 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 higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 5.90 mean?
Richards Group (TSX:RIC) has a Interest Coverage of 5.90 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Richards Group and its competitors. This is 81% below median its historical median of 30.36. Over the past decade, Richards Group's Interest Coverage has ranged from 7.89 to 47.66. According to the industry distribution chart, Richards Group ranks #145 out of 316 companies in the Packaging & Containers industry, placing it in the top 45.9%.
Is Richards Group's Interest Coverage too high?
Richards Group's current Interest Coverage of 5.90 is 81% below median its 10-year median of 30.36. Over the past 10 years, this metric has ranged from a low of 7.89 to a high of 47.66. The Packaging & Containers industry median Interest Coverage is 6.06. Richards Group's value of 5.90 is 2.6% below this industry median. Based on the distribution chart, Richards Group ranks #145 out of 316 companies in the Packaging & Containers industry, which is above the industry midpoint. Overall, Richards Group has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Richards Group's Interest Coverage compare to SW and PKG?
According to the Packaging & Containers industry distribution chart, Richards Group ranks #145 out of 316 companies for Interest Coverage. This puts Richards Group in the upper half of its industry. The industry median Interest Coverage is 6.06. Richards Group's value of 5.90 is 2.6% below this benchmark. Historically, Richards Group's own Interest Coverage has ranged from 7.89 to 47.66 over the past decade. While the company's 10-year median is 30.36 vs. the industry median of 6.06, Richards Group 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. Richards Group's current Interest Coverage of 5.90 is 2.6% 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 Richards Group 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. Richards Group's current Interest Coverage is 5.90, which is 81% below median its own 10-year median of 30.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Richards Group stock overvalued right now?
Based on GuruFocus' analysis, Richards Group (TSX:RIC) is currently considered Modestly Undervalued. The stock's GF Value™ is C$32.90, compared to a current price of C$27.90 — trading 15.2% below its estimated fair value. The current Interest Coverage is 5.90, which is 81% below median its 10-year median of 30.36 and 2.6% below the Packaging & Containers industry median of 6.06. Richards Group's overall GF Score™ is 72/100 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 Richards Group (TSX:RIC), the current Interest Coverage is 5.90 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 Richards Group (TSX:RIC) Overvalued in 2026?

Based on GuruFocus' analysis, Richards Group stock appears to be undervalued. The current stock price of C$27.90 is trading 15.2% below its estimated GF Value™ of C$32.90. GuruFocus considers Richards Group to be Modestly Undervalued.

Key valuation signals for TSX:RIC:

  • Interest Coverage: 5.90 (81% below median its 10-year median of 30.36)
  • GF Value™: C$32.90 vs. price of C$27.90 (15.2% below fair value)
  • GF Score™: 72/100 with 2 warning signs
  • Industry Position: 2.6% below the Packaging & Containers median (#145 of 316)

No single metric tells the full story. See the TSX:RIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Richards Group Business Description

Other Exchanges RPKIF:USA
Address 6155 Belgrave Road, Unit 3, Mississauga, ON, CAN, L5R 4E6
Richards Group Inc operates under two verticals, namely 'Richards Packaging' and 'Richards Health'. It provides glass and plastic packaging solutions across various locations throughout North America under the Richards Packaging business. The Richards Health business operates under the brands: Richards Packaging Inc, Clarion Medical Technologies, Healthmark Services Ltd, and DermapenWorld. The company updated its historical view of operations from a single operating segment to two reportable segments: Healthcare and Packaging, and has restated comparable information accordingly.
72GF Score

Get the complete analysis for TSX:RIC

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$27.90
Price
C$32.90
GF Value