AustalAUTLF +0.27%68 Interest Coverage is 1.95 as of Dec. 2025, which is 53% below its 10-year median of 4.19. GuruFocus rates AUTLF with a GF Score™ of 68/100 and a GF Value™ of $2.12 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 241 Aerospace & Defense companies, Austal ranks worse than 99.59% 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. Austal's
Operating Income
for the
six
months ended in Dec. 2025 was $13 Mil. Austal's Interest Expense for the
six
months ended in Dec. 2025 was $-6 Mil.
Austal's interest coverage for the quarter that ended in Dec. 2025 was 1.95.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Austal's Interest Coverage or its related term are showing as below:
AUTLF'
s Interest Coverage Range Over the Past 10 Years
Min: 0.26 Med: 4.19 Max: 8.44
Current: 0.26
AUTLF's Interest Coverage is ranked worse than 99.59% of 241
companies
in the Aerospace & Defense industry
Industry Median: 8.69
vs AUTLF: 0.26
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 .
Austal Interest Coverage Related Terms
Austal Interest Coverage Historical Data
* Premium members only.
The historical data trend for Austal'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.
AUTLF vs GE, RTX, BA: Interest Coverage Comparison
For the Aerospace & Defense subindustry, Austal'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.
Austal Interest Coverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Austal's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Austal'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.
Austal (AUTLF) has a Interest Coverage of 1.95 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Austal and its competitors. This is 53% below median its historical median of 4.19. Over the past decade, Austal's Interest Coverage has ranged from 0.26 to 8.44. According to the industry distribution chart, Austal ranks #240 out of 241 companies in the Aerospace & Defense industry, placing it in the top 99.6%.
Is Austal's Interest Coverage too high?
Austal's current Interest Coverage of 1.95 is 53% below median its 10-year median of 4.19. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 8.44. The Aerospace & Defense industry median Interest Coverage is 8.69. Austal's value of 1.95 is 77.6% below this industry median. Based on the distribution chart, Austal ranks #240 out of 241 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Austal has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Austal's Interest Coverage compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Austal ranks #240 out of 241 companies for Interest Coverage. This places Austal in the lower half of its industry. The industry median Interest Coverage is 8.69. Austal's value of 1.95 is 77.6% below this benchmark. Historically, Austal's own Interest Coverage has ranged from 0.26 to 8.44 over the past decade. While the company's 10-year median is 4.19 vs. the industry median of 8.69, Austal 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 an Aerospace & Defense company?
The median Interest Coverage among Aerospace & Defense companies is 8.69, based on 241 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. Austal's current Interest Coverage of 1.95 is 77.6% 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 Austal and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 8.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Austal's current Interest Coverage is 1.95, which is 53% below median its own 10-year median of 4.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Austal stock overvalued right now?
Based on GuruFocus' analysis, Austal (AUTLF) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.12, compared to a current price of $3.02 — trading 42.4% above its estimated fair value. The current Interest Coverage is 1.95, which is 53% below median its 10-year median of 4.19 and 77.6% below the Aerospace & Defense industry median of 8.69. Austal's overall GF Score™ is 68/100 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 Austal (AUTLF), the current Interest Coverage is 1.95 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 Austal (AUTLF) Overvalued in 2026?
Based on GuruFocus' analysis, Austal stock appears to be overvalued.
The current stock price of $3.02 is trading 42.4% above its estimated GF Value™ of $2.12.
GuruFocus considers Austal to be Significantly Overvalued.
Key valuation signals for AUTLF:
Interest Coverage: 1.95 (53% below median its 10-year median of 4.19)
GF Value™: $2.12 vs. price of $3.02 (42.4% above fair value)
Industry Position: 77.6% below the Aerospace & Defense median (#240 of 241)
No single metric tells the full story. See the AUTLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Austal Ltd is engaged in designing, constructing, and supporting revolutionary defense and commercial vessels. The company designs, constructs, and supports passenger ferries, vehicle passenger ferries, and offshore and windfarm vessels; naval vessels; naval surface warfare combatants; and patrol boats for government law enforcement and border protection agencies. Its reportable segments are USA Shipbuilding; USA Support; Australasia Shipbuilding and Australasia Support. Maximum revenue is generated from its USA Shipbuilding segment which manufactures high performance defence vessels for U.S. Navy and Coast Guard. Geographically, the company derives a majority of its revenue from the United States of America and the rest from Australia, Europe, Asia, South America, and the Middle East.
68GF Score
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