Spark New ZealandASX:SPK -2.03%67 Interest Coverage is 3.51 as of Dec. 2025, which is 69% below its 10-year median of 11.33. GuruFocus rates ASX:SPK with a GF Score™ of 67/100 and a GF Value™ of A$2.70 (Significantly Undervalued). The stock has 8 warning signs investors should review. Among 286 Telecommunication Services companies, Spark New Zealand ranks worse than 52.45% 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. Spark New Zealand's
Operating Income
for the
six
months ended in Dec. 2025 was A$125 Mil. Spark New Zealand's Interest Expense for the
six
months ended in Dec. 2025 was A$-36 Mil.
Spark New Zealand's interest coverage for the quarter that ended in Dec. 2025 was 3.51.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Spark New Zealand Ltd interest coverage is 4.45, which is low.
The historical rank and industry rank for Spark New Zealand's Interest Coverage or its related term are showing as below:
ASX:SPK'
s Interest Coverage Range Over the Past 10 Years
Min: 3.68 Med: 11.33 Max: 12.63
Current: 4.45
ASX:SPK's Interest Coverage is ranked worse than 52.45% of 286
companies
in the Telecommunication Services industry
Industry Median: 4.715
vs ASX:SPK: 4.45
Spark New Zealand (ASX:SPK) 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 .
Spark New Zealand Interest Coverage Related Terms
Spark New Zealand Interest Coverage Historical Data
* Premium members only.
The historical data trend for Spark New Zealand'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.
ASX:SPK vs TMUS, VZ, T: Interest Coverage Comparison
For the Telecom Services subindustry, Spark New Zealand'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.
Spark New Zealand Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Spark New Zealand's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Spark New Zealand'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.
Spark New Zealand (ASX:SPK) has a Interest Coverage of 3.51 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Spark New Zealand and its competitors. This is 69% below median its historical median of 11.33. Over the past decade, Spark New Zealand's Interest Coverage has ranged from 3.68 to 12.63. According to the industry distribution chart, Spark New Zealand ranks #150 out of 286 companies in the Telecommunication Services industry, placing it in the top 52.4%.
Is Spark New Zealand's Interest Coverage too high?
Spark New Zealand's current Interest Coverage of 3.51 is 69% below median its 10-year median of 11.33. Over the past 10 years, this metric has ranged from a low of 3.68 to a high of 12.63. The Telecommunication Services industry median Interest Coverage is 4.72. Spark New Zealand's value of 3.51 is 25.6% below this industry median. Based on the distribution chart, Spark New Zealand ranks #150 out of 286 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Spark New Zealand has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Spark New Zealand's Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Spark New Zealand ranks #150 out of 286 companies for Interest Coverage. This places Spark New Zealand in the lower half of its industry. The industry median Interest Coverage is 4.72. Spark New Zealand's value of 3.51 is 25.6% below this benchmark. Historically, Spark New Zealand's own Interest Coverage has ranged from 3.68 to 12.63 over the past decade. While the company's 10-year median is 11.33 vs. the industry median of 4.72, Spark New Zealand 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 Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.72, based on 286 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. Spark New Zealand's current Interest Coverage of 3.51 is 25.6% 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 Spark New Zealand and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spark New Zealand's current Interest Coverage is 3.51, which is 69% below median its own 10-year median of 11.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spark New Zealand stock overvalued right now?
Based on GuruFocus' analysis, Spark New Zealand (ASX:SPK) is currently considered Significantly Undervalued. The stock's GF Value™ is A$2.70, compared to a current price of A$1.45 — trading 46.3% below its estimated fair value. The current Interest Coverage is 3.51, which is 69% below median its 10-year median of 11.33 and 25.6% below the Telecommunication Services industry median of 4.72. Spark New Zealand's overall GF Score™ is 67/100 with 8 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 Spark New Zealand (ASX:SPK), the current Interest Coverage is 3.51 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 Spark New Zealand (ASX:SPK) Overvalued in 2026?
Based on GuruFocus' analysis, Spark New Zealand stock appears to be undervalued.
The current stock price of A$1.45 is trading 46.3% below its estimated GF Value™ of A$2.70.
GuruFocus considers Spark New Zealand to be Significantly Undervalued.
Key valuation signals for ASX:SPK:
Interest Coverage: 3.51 (69% below median its 10-year median of 11.33)
GF Value™: A$2.70 vs. price of A$1.45 (46.3% below fair value)
Industry Position: 25.6% below the Telecommunication Services median (#150 of 286)
No single metric tells the full story. See the ASX:SPK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spark is one of only three integrated telecommunications companies in New Zealand. It is the leading mobile network operator with low- to mid-40% subscriber and revenue share, and the dominant provider of fixed-line broadband services with a mid-30% subscriber share. It has a big position in the New Zealand corporate and wholesale telecommunications services provision space. Spark supplements its core telecommunications operations and related infrastructure with IT products and services across cloud, managed data and networks, procurement, data centers, and Internet of Things. Its operations are all based in New Zealand, except for its 41% interest in Southern Cross Submarine Cables, which has zero book value and to which Spark has no funding obligations.
67GF Score
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