Carreras (XJAM:CAR) Interest Coverage: 115.58 (As of Dec. 2025) — 60% Below Median


XJAM:CAR Carreras Ltd XJAM:CAR
76 GF Score
Price JMD26.16
GF Value JMD12.98
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Carreras Interest Coverage?

Carreras XJAM:CAR -6.34% 76 Interest Coverage is 115.58 as of Dec. 2025, which is 60% below its 10-year median of 286.48. GuruFocus rates XJAM:CAR with a GF Score™ of 76/100 and a GF Value™ of JMD12.98 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 35 Tobacco Products companies, Carreras ranks better than 74.29% 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. Carreras's Operating Income for the six months ended in Dec. 2025 was JMD8,827 Mil. Carreras's Interest Expense for the six months ended in Dec. 2025 was JMD-76 Mil. Carreras's interest coverage for the quarter that ended in Dec. 2025 was 115.58. The higher the ratio, the stronger the company's financial strength is.

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

XJAM:CAR' s Interest Coverage Range Over the Past 10 Years
Min: 115.58   Med: 286.48   Max: No Debt
Current: 115.58


XJAM:CAR's Interest Coverage is ranked better than
74.29% of 35 companies
in the Tobacco Products industry
Industry Median: 10.9 vs XJAM:CAR: 115.58

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


Carreras  (XJAM:CAR) 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 .


Carreras Interest Coverage Related Terms


Carreras Interest Coverage Historical Data

* Premium members only.

The historical data trend for Carreras'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.

Carreras Interest Coverage Chart

Carreras Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 239.95 295.84 253.22 242.75 115.58

Carreras Semi-Annual Data
Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Dec24 Dec25
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 239.95 295.84 253.22 242.75 115.58

XJAM:CAR vs PM, MO, TPB: Interest Coverage Comparison

For the Tobacco subindustry, Carreras'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.


Carreras Interest Coverage vs Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Carreras's Interest Coverage distribution charts can be found below:

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


XJAM:CAR
76GF Score
Carreras Ltd XJAM:CAR
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Carreras 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.

Carreras'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, Carreras's Interest Expense was JMD-76 Mil. Its Operating Income was JMD8,827 Mil. And its Long-Term Debt & Capital Lease Obligation was JMD626 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*8826.756/-76.367
=115.58

Carreras's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Carreras's Interest Expense was JMD-76 Mil. Its Operating Income was JMD8,827 Mil. And its Long-Term Debt & Capital Lease Obligation was JMD626 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*8826.756/-76.367
=115.58

* 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 115.58 mean?
Carreras (XJAM:CAR) has a Interest Coverage of 115.58 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Carreras and its competitors. This is 60% below median its historical median of 286.48. Over the past decade, Carreras' Interest Coverage has ranged from 115.58 to 10,000.00. According to the industry distribution chart, Carreras ranks #9 out of 35 companies in the Tobacco Products industry, placing it in the top 25.7%.
Is Carreras' Interest Coverage too high?
Carreras' current Interest Coverage of 115.58 is 60% below median its 10-year median of 286.48. Over the past 10 years, this metric has ranged from a low of 115.58 to a high of 10,000.00. The Tobacco Products industry median Interest Coverage is 10.90. Carreras' value of 115.58 is 960.4% above this industry median. Based on the distribution chart, Carreras ranks #9 out of 35 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, Carreras has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Carreras' Interest Coverage compare to PM and MO?
According to the Tobacco Products industry distribution chart, Carreras ranks #9 out of 35 companies for Interest Coverage. This puts Carreras in the upper half of its industry. The industry median Interest Coverage is 10.90. Carreras' value of 115.58 is 960.4% above this benchmark. Historically, Carreras' own Interest Coverage has ranged from 115.58 to 10,000.00 over the past decade. While the company's 10-year median is 286.48 vs. the industry median of 10.90, Carreras 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 Tobacco Products company?
The median Interest Coverage among Tobacco Products companies is 10.90, based on 35 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. Carreras's current Interest Coverage of 115.58 is 960.4% 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 Carreras and its competitors. For the Tobacco Products industry, the median Interest Coverage is 10.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Carreras's current Interest Coverage is 115.58, which is 60% below median its own 10-year median of 286.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carreras stock overvalued right now?
Based on GuruFocus' analysis, Carreras (XJAM:CAR) is currently considered Significantly Overvalued. The stock's GF Value™ is JMD12.98, compared to a current price of JMD26.16 — trading 101.5% above its estimated fair value. The current Interest Coverage is 115.58, which is 60% below median its 10-year median of 286.48 and 960.4% above the Tobacco Products industry median of 10.90. Carreras' overall GF Score™ is 76/100 with 6 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 Carreras (XJAM:CAR), the current Interest Coverage is 115.58 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 Carreras (XJAM:CAR) Overvalued in 2026?

Based on GuruFocus' analysis, Carreras stock appears to be overvalued. The current stock price of JMD26.16 is trading 101.5% above its estimated GF Value™ of JMD12.98. GuruFocus considers Carreras to be Significantly Overvalued.

Key valuation signals for XJAM:CAR:

  • Interest Coverage: 115.58 (60% below median its 10-year median of 286.48)
  • GF Value™: JMD12.98 vs. price of JMD26.16 (101.5% above fair value)
  • GF Score™: 76/100 with 6 warning signs
  • Industry Position: 960.4% above the Tobacco Products median (#9 of 35)

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


Carreras Business Description

Address 8 Automotive Parkway, Kingston, JAM, 20
Carreras Ltd is a marketer and distributor of cigarettes and tobacco-related products in Jamaica. The company markets and distributes various brands of cigarettes, including Craven A and Matterhorn. The group's activities are limited to the distribution of cigarettes to Jamaican consumers, operating in a single segment.
76GF Score

Get the complete analysis for XJAM:CAR

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

JMD26.16
Price
JMD12.98
GF Value