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. Southern Cross Electrical Engineering's
Operating Income
for the
six
months ended in Dec. 2025 was A$28.5 Mil. Southern Cross Electrical Engineering's Interest Expense for the
six
months ended in Dec. 2025 was A$-1.9 Mil.
Southern Cross Electrical Engineering's interest coverage for the quarter that ended in Dec. 2025 was 15.30.
The higher the ratio, the stronger the company's financial strength is.
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 .
Southern Cross Electrical Engineering Interest Coverage Related Terms
Southern Cross Electrical Engineering Interest Coverage Historical Data
* 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:SXE vs PWR, FIX, EME: Interest Coverage Comparison
For the Engineering & Construction subindustry, Southern Cross Electrical Engineering'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.
Southern Cross Electrical Engineering Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, Southern Cross Electrical Engineering's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Southern Cross Electrical Engineering'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.
Southern Cross Electrical Engineering (ASX:SXE) has a Interest Coverage of 15.30 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Southern Cross Electrical Engineering and its competitors. This is near median its historical median of 14.31. Over the past decade, Southern Cross Electrical Engineering's Interest Coverage has ranged from 5.52 to 22.80. According to the industry distribution chart, Southern Cross Electrical Engineering ranks #515 out of 1351 companies in the Construction industry, placing it in the top 38.1%.
Is Southern Cross Electrical Engineering's Interest Coverage too high?
Southern Cross Electrical Engineering's current Interest Coverage of 15.30 is near median its 10-year median of 14.31. Over the past 10 years, this metric has ranged from a low of 5.52 to a high of 22.80. The Construction industry median Interest Coverage is 7.81. Southern Cross Electrical Engineering's value of 15.30 is 95.9% above this industry median. Based on the distribution chart, Southern Cross Electrical Engineering ranks #515 out of 1351 companies in the Construction industry, which is above the industry midpoint. Overall, Southern Cross Electrical Engineering has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Southern Cross Electrical Engineering's Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, Southern Cross Electrical Engineering ranks #515 out of 1351 companies for Interest Coverage. This puts Southern Cross Electrical Engineering in the upper half of its industry. The industry median Interest Coverage is 7.81. Southern Cross Electrical Engineering's value of 15.30 is 95.9% above this benchmark. Historically, Southern Cross Electrical Engineering's own Interest Coverage has ranged from 5.52 to 22.80 over the past decade. While the company's 10-year median is 14.31 vs. the industry median of 7.81, Southern Cross Electrical Engineering 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 Construction company?
The median Interest Coverage among Construction companies is 7.81, based on 1,351 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. Southern Cross Electrical Engineering's current Interest Coverage of 15.30 is 95.9% 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 Southern Cross Electrical Engineering and its competitors. For the Construction industry, the median Interest Coverage is 7.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southern Cross Electrical Engineering's current Interest Coverage is 15.30, which is near median its own 10-year median of 14.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southern Cross Electrical Engineering stock overvalued right now?
Based on GuruFocus' analysis, Southern Cross Electrical Engineering (ASX:SXE) is currently considered Significantly Overvalued. The stock's GF Value™ is A$2.02, compared to a current price of A$4.77 — trading 136.1% above its estimated fair value. The current Interest Coverage is 15.30, which is near median its 10-year median of 14.31 and 95.9% above the Construction industry median of 7.81. Southern Cross Electrical Engineering's 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 Southern Cross Electrical Engineering (ASX:SXE), the current Interest Coverage is 15.30 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 Southern Cross Electrical Engineering (ASX:SXE) Overvalued in 2026?
Based on GuruFocus' analysis, Southern Cross Electrical Engineering stock appears to be overvalued.
The current stock price of A$4.77 is trading 136.1% above its estimated GF Value™ of A$2.02.
GuruFocus considers Southern Cross Electrical Engineering to be Significantly Overvalued.
Key valuation signals for ASX:SXE:
Interest Coverage: 15.30 (near median its 10-year median of 14.31)
GF Value™: A$2.02 vs. price of A$4.77 (136.1% above fair value)
Industry Position: 95.9% above the Construction median (#515 of 1351)
No single metric tells the full story. See the ASX:SXE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southern Cross Electrical Engineering Business Description
Southern Cross Electrical Engineering Ltd engages in the provision of electrical, instrumentation, communication, and maintenance services. It serves various sectors such as commercial developments; public infrastructure and defence; resources-mining, oil and gas; industrial, utilities and energy; telecommunications and data centres. The company provides its services through the three key segments of SCEE, Heyday, and Trivantage. Geographically, it derives a majority of revenue from Australia.
76GF Score
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