Borr DrillingBORR +0.23%71 Interest Coverage is 0.77 as of Mar. 2026, which is 51% below its 10-year median of 1.58. GuruFocus rates BORR with a GF Score™ of 71/100 and a GF Value™ of $5.40 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 728 Oil & Gas companies, Borr Drilling ranks worse than 88.19% 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. Borr Drilling's
Operating Income
for the
three
months ended in Mar. 2026 was $46 Mil. Borr Drilling's Interest Expense for the
three
months ended in Mar. 2026 was $-60 Mil.
Borr Drilling's interest coverage for the quarter that ended in Mar. 2026 was 0.77.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Borr Drilling's Interest Coverage or its related term are showing as below:
BORR'
s Interest Coverage Range Over the Past 10 Years
Min: 0.2 Med: 1.58 Max: No Debt
Current: 1.37
BORR's Interest Coverage is ranked worse than 88.19% of 728
companies
in the Oil & Gas industry
Industry Median: 5.885
vs BORR: 1.37
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 .
Borr Drilling Interest Coverage Related Terms
Borr Drilling Interest Coverage Historical Data
* Premium members only.
The historical data trend for Borr Drilling'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.
BORR vs NBR, SOC, VTDRF: Interest Coverage Comparison
For the Oil & Gas Drilling subindustry, Borr Drilling'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.
Borr Drilling Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Borr Drilling's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Borr Drilling'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.
Borr Drilling (BORR) has a Interest Coverage of 0.77 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Borr Drilling and its competitors. This is 51% below median its historical median of 1.58. Over the past decade, Borr Drilling's Interest Coverage has ranged from 0.20 to 10,000.00. According to the industry distribution chart, Borr Drilling ranks #642 out of 728 companies in the Oil & Gas industry, placing it in the top 88.2%.
Is Borr Drilling's Interest Coverage too high?
Borr Drilling's current Interest Coverage of 0.77 is 51% below median its 10-year median of 1.58. Over the past 10 years, this metric has ranged from a low of 0.20 to a high of 10,000.00. The Oil & Gas industry median Interest Coverage is 5.89. Borr Drilling's value of 0.77 is 86.9% below this industry median. Based on the distribution chart, Borr Drilling ranks #642 out of 728 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Borr Drilling has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Borr Drilling's Interest Coverage compare to NBR and SOC?
According to the Oil & Gas industry distribution chart, Borr Drilling ranks #642 out of 728 companies for Interest Coverage. This places Borr Drilling in the lower half of its industry. The industry median Interest Coverage is 5.89. Borr Drilling's value of 0.77 is 86.9% below this benchmark. Historically, Borr Drilling's own Interest Coverage has ranged from 0.20 to 10,000.00 over the past decade. While the company's 10-year median is 1.58 vs. the industry median of 5.89, Borr Drilling 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 Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 728 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. Borr Drilling's current Interest Coverage of 0.77 is 86.9% 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 Borr Drilling and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Borr Drilling's current Interest Coverage is 0.77, which is 51% below median its own 10-year median of 1.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Borr Drilling stock overvalued right now?
Based on GuruFocus' analysis, Borr Drilling (BORR) is currently considered Modestly Undervalued. The stock's GF Value™ is $5.40, compared to a current price of $4.38 — trading 18.9% below its estimated fair value. The current Interest Coverage is 0.77, which is 51% below median its 10-year median of 1.58 and 86.9% below the Oil & Gas industry median of 5.89. Borr Drilling's overall GF Score™ is 71/100 with 5 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 Borr Drilling (BORR), the current Interest Coverage is 0.77 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 Borr Drilling (BORR) Overvalued in 2026?
Based on GuruFocus' analysis, Borr Drilling stock appears to be undervalued.
The current stock price of $4.38 is trading 18.9% below its estimated GF Value™ of $5.40.
GuruFocus considers Borr Drilling to be Modestly Undervalued.
Key valuation signals for BORR:
Interest Coverage: 0.77 (51% below median its 10-year median of 1.58)
GF Value™: $5.40 vs. price of $4.38 (18.9% below fair value)
Industry Position: 86.9% below the Oil & Gas median (#642 of 728)
No single metric tells the full story. See the BORR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Borr Drilling Ltd is an offshore shallow-water drilling contractor providing services to the oil and gas industry. Its operations focus on the ownership, contracting, and operation of jack-up rigs in shallow-water areas, including the provision of related equipment and work crews to conduct oil and gas drilling and workover operations for exploration and production (E&P) customers. The company contracts its rigs on a dayrate basis to drill wells for integrated oil companies, state-owned national oil companies, and independent oil and gas companies. It operates in one reportable segment.
71GF Score
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