Grupo Melo (XPTY:MELO) Interest Coverage: 9.22 (As of Mar. 2026) — 143% Above Median


XPTY:MELO Grupo Melo SA XPTY:MELO
93 GF Score
Price $55.00
GF Value $50.88
Valuation Fairly Valued
! 4 Warning Signs
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What is Grupo Melo Interest Coverage?

Grupo Melo XPTY:MELO 93 Interest Coverage is 9.22 as of Mar. 2026, which is 143% above its 10-year median of 3.80. GuruFocus rates XPTY:MELO with a GF Score™ of 93/100 and a GF Value™ of $50.88 (Fairly Valued). The stock has 4 warning signs investors should review. Among 426 Conglomerates companies, Grupo Melo ranks worse than 55.87% 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. Grupo Melo's Operating Income for the three months ended in Mar. 2026 was $9.0 Mil. Grupo Melo's Interest Expense for the three months ended in Mar. 2026 was $-1.0 Mil. Grupo Melo's interest coverage for the quarter that ended in Mar. 2026 was 9.22. The higher the ratio, the stronger the company's financial strength is.

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

XPTY:MELO' s Interest Coverage Range Over the Past 10 Years
Min: 1.66   Med: 3.8   Max: 6.44
Current: 4.61


XPTY:MELO's Interest Coverage is ranked worse than
55.87% of 426 companies
in the Conglomerates industry
Industry Median: 5.31 vs XPTY:MELO: 4.61

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


Grupo Melo  (XPTY:MELO) 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 .


Grupo Melo Interest Coverage Related Terms


Grupo Melo Interest Coverage Historical Data

* Premium members only.

The historical data trend for Grupo Melo'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.

Grupo Melo Interest Coverage Chart

Grupo Melo 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 4.64 5.02 2.78 3.93 4.37

Grupo Melo 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 4.12 3.30 3.35 4.08 9.22

XPTY:MELO vs HON, MMM: Interest Coverage Comparison

For the Conglomerates subindustry, Grupo Melo'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.


Grupo Melo Interest Coverage vs Conglomerates Industry

For the Conglomerates industry and Industrials sector, Grupo Melo's Interest Coverage distribution charts can be found below:

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


XPTY:MELO
93GF Score
Grupo Melo SA XPTY:MELO
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Grupo Melo 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.

Grupo Melo'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, Grupo Melo's Interest Expense was $-5.7 Mil. Its Operating Income was $24.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $70.4 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*24.818/-5.68
=4.37

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

Here, for the three months ended in Mar. 2026, Grupo Melo's Interest Expense was $-1.0 Mil. Its Operating Income was $9.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $70.2 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*8.984/-0.974
=9.22

* 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 9.22 mean?
Grupo Melo (XPTY:MELO) has a Interest Coverage of 9.22 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Grupo Melo and its competitors. This is 143% above median its historical median of 3.80. Over the past decade, Grupo Melo's Interest Coverage has ranged from 1.66 to 6.44. According to the industry distribution chart, Grupo Melo ranks #238 out of 426 companies in the Conglomerates industry, placing it in the top 55.9%.
Is Grupo Melo's Interest Coverage too high?
Grupo Melo's current Interest Coverage of 9.22 is 143% above median its 10-year median of 3.80. Over the past 10 years, this metric has ranged from a low of 1.66 to a high of 6.44. The Conglomerates industry median Interest Coverage is 5.31. Grupo Melo's value of 9.22 is 73.6% above this industry median. Based on the distribution chart, Grupo Melo ranks #238 out of 426 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Grupo Melo has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Grupo Melo's Interest Coverage compare to HON and MMM?
According to the Conglomerates industry distribution chart, Grupo Melo ranks #238 out of 426 companies for Interest Coverage. This places Grupo Melo in the lower half of its industry. The industry median Interest Coverage is 5.31. Grupo Melo's value of 9.22 is 73.6% above this benchmark. Historically, Grupo Melo's own Interest Coverage has ranged from 1.66 to 6.44 over the past decade. While the company's 10-year median is 3.80 vs. the industry median of 5.31, Grupo Melo 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 Conglomerates company?
The median Interest Coverage among Conglomerates companies is 5.31, based on 426 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. Grupo Melo's current Interest Coverage of 9.22 is 73.6% 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 Grupo Melo and its competitors. For the Conglomerates industry, the median Interest Coverage is 5.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grupo Melo's current Interest Coverage is 9.22, which is 143% above median its own 10-year median of 3.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grupo Melo stock overvalued right now?
Based on GuruFocus' analysis, Grupo Melo (XPTY:MELO) is currently considered Fairly Valued. The stock's GF Value™ is $50.88, compared to a current price of $55.00 — trading 8.1% above its estimated fair value. The current Interest Coverage is 9.22, which is 143% above median its 10-year median of 3.80 and 73.6% above the Conglomerates industry median of 5.31. Grupo Melo's overall GF Score™ is 93/100 with 4 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 Grupo Melo (XPTY:MELO), the current Interest Coverage is 9.22 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 Grupo Melo (XPTY:MELO) Overvalued in 2026?

Based on GuruFocus' analysis, Grupo Melo stock appears to be overvalued. The current stock price of $55.00 is trading 8.1% above its estimated GF Value™ of $50.88. GuruFocus considers Grupo Melo to be Fairly Valued.

Key valuation signals for XPTY:MELO:

  • Interest Coverage: 9.22 (143% above median its 10-year median of 3.80)
  • GF Value™: $50.88 vs. price of $55.00 (8.1% above fair value)
  • GF Score™: 93/100 with 4 warning signs
  • Industry Position: 73.6% above the Conglomerates median (#238 of 426)

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


Grupo Melo Business Description

Address Via Espana Rio Abajo, Building 2313, P.O. Box 0816-07582, Panama City, PAN
Grupo Melo SA is engaged in the production, processing, distribution, and marketing of food. The company also distributes machinery for agriculture and construction and develops and promotes real estate. Its brand profile include COMASA, ISUZU, MELO, and BREDOS among others.
93GF Score

Get the complete analysis for XPTY:MELO

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

$55.00
Price
$50.88
GF Value