CencoraWBO:ABC -0.27%69 Interest Coverage is 8.82 as of Mar. 2026, which is 31% below its 10-year median of 12.73. GuruFocus rates WBO:ABC with a GF Score™ of 69/100 and a GF Value™ of €259.45 (Fairly Valued). The stock has 1 warning sign investors should review. Among 91 Medical Distribution companies, Cencora ranks better than 61.54% 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. Cencora's
Operating Income
for the
three
months ended in Mar. 2026 was €1,178 Mil. Cencora's Interest Expense for the
three
months ended in Mar. 2026 was €-134 Mil.
Cencora's interest coverage for the quarter that ended in Mar. 2026 was 8.82.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Cencora's Interest Coverage or its related term are showing as below:
WBO:ABC'
s Interest Coverage Range Over the Past 10 Years
Min: 9.08 Med: 12.73 Max: 16.34
Current: 9.08
WBO:ABC's Interest Coverage is ranked better than 61.54% of 91
companies
in the Medical Distribution industry
Industry Median: 6.92
vs WBO:ABC: 9.08
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 .
Cencora Interest Coverage Related Terms
Cencora Interest Coverage Historical Data
* Premium members only.
The historical data trend for Cencora'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.
WBO:ABC vs CAH, MCK, HSIC: Interest Coverage Comparison
For the Medical Distribution subindustry, Cencora'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.
Cencora Interest Coverage vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Cencora's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Cencora'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.
Cencora (WBO:ABC) has a Interest Coverage of 8.82 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cencora and its competitors. This is 31% below median its historical median of 12.73. Over the past decade, Cencora's Interest Coverage has ranged from 9.08 to 16.34. According to the industry distribution chart, Cencora ranks #35 out of 91 companies in the Medical Distribution industry, placing it in the top 38.5%.
Is Cencora's Interest Coverage too high?
Cencora's current Interest Coverage of 8.82 is 31% below median its 10-year median of 12.73. Over the past 10 years, this metric has ranged from a low of 9.08 to a high of 16.34. The Medical Distribution industry median Interest Coverage is 6.92. Cencora's value of 8.82 is 27.5% above this industry median. Based on the distribution chart, Cencora ranks #35 out of 91 companies in the Medical Distribution industry, which is above the industry midpoint. Overall, Cencora has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cencora's Interest Coverage compare to CAH and MCK?
According to the Medical Distribution industry distribution chart, Cencora ranks #35 out of 91 companies for Interest Coverage. This puts Cencora in the upper half of its industry. The industry median Interest Coverage is 6.92. Cencora's value of 8.82 is 27.5% above this benchmark. Historically, Cencora's own Interest Coverage has ranged from 9.08 to 16.34 over the past decade. While the company's 10-year median is 12.73 vs. the industry median of 6.92, Cencora 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 Medical Distribution company?
The median Interest Coverage among Medical Distribution companies is 6.92, based on 91 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. Cencora's current Interest Coverage of 8.82 is 27.5% 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 Cencora and its competitors. For the Medical Distribution industry, the median Interest Coverage is 6.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cencora's current Interest Coverage is 8.82, which is 31% below median its own 10-year median of 12.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cencora stock overvalued right now?
Based on GuruFocus' analysis, Cencora (WBO:ABC) is currently considered Fairly Valued. The stock's GF Value™ is €259.45, compared to a current price of €254.30 — trading 2% below its estimated fair value. The current Interest Coverage is 8.82, which is 31% below median its 10-year median of 12.73 and 27.5% above the Medical Distribution industry median of 6.92. Cencora's overall GF Score™ is 69/100 with 1 warning sign 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 Cencora (WBO:ABC), the current Interest Coverage is 8.82 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 Cencora (WBO:ABC) Overvalued in 2026?
Based on GuruFocus' analysis, Cencora stock appears to be undervalued.
The current stock price of €254.30 is trading 2% below its estimated GF Value™ of €259.45.
GuruFocus considers Cencora to be Fairly Valued.
Key valuation signals for WBO:ABC:
Interest Coverage: 8.82 (31% below median its 10-year median of 12.73)
GF Value™: €259.45 vs. price of €254.30 (2% below fair value)
Industry Position: 27.5% above the Medical Distribution median (#35 of 91)
No single metric tells the full story. See the WBO:ABC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cencora is one of three leading domestic pharmaceutical wholesalers. It sources and distributes branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospital networks, and healthcare providers. It and McKesson and Cardinal Health hold over 90% share of the US pharmaceutical wholesale industry. Cencora also provides commercialization services for manufacturers of pharmaceuticals and medical devices, global specialty drug logistics (World Courier), and animal health product distribution (MWI Animal Health). Cencora expanded its international presence in 2021 by purchasing Alliance Healthcare, one of the leading drug wholesalers in Europe.
69GF Score
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