Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) Interest Coverage: 61.93 (As of Mar. 2026) — 211% Above Median


BSP:EMAE4 Empresa Metropolitana de Aguas & Energia SA BSP:EMAE4
63 GF Score
Price R$38.51
GF Value R$37.23
Valuation Fairly Valued
! 3 Warning Signs
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What is Empresa Metropolitana de Aguas & Energia Interest Coverage?

Empresa Metropolitana de Aguas & Energia BSP:EMAE4 +1.34% 63 Interest Coverage is 61.93 as of Mar. 2026, which is 211% above its 10-year median of 19.91. GuruFocus rates BSP:EMAE4 with a GF Score™ of 63/100 and a GF Value™ of R$37.23 (Fairly Valued). The stock has 3 warning signs investors should review. Among 449 Utilities - Regulated companies, Empresa Metropolitana de Aguas & Energia ranks worse than 222716.93% 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. Empresa Metropolitana de Aguas & Energia's Operating Income for the three months ended in Mar. 2026 was R$12.3 Mil. Empresa Metropolitana de Aguas & Energia's Interest Expense for the three months ended in Mar. 2026 was R$-0.2 Mil. Empresa Metropolitana de Aguas & Energia's interest coverage for the quarter that ended in Mar. 2026 was 61.93. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Empresa Metropolitana de Aguas & Energia's Interest Coverage or its related term are showing as below:


BSP:EMAE4's Interest Coverage is not ranked *
in the Utilities - Regulated industry.
Industry Median: 3.78
* Ranked among companies with meaningful Interest Coverage only.

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


Empresa Metropolitana de Aguas & Energia  (BSP:EMAE4) 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 .


Empresa Metropolitana de Aguas & Energia Interest Coverage Related Terms


Empresa Metropolitana de Aguas & Energia Interest Coverage Historical Data

* Premium members only.

The historical data trend for Empresa Metropolitana de Aguas & Energia'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.

Empresa Metropolitana de Aguas & Energia Interest Coverage Chart

Empresa Metropolitana de Aguas & Energia 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 44.56 0.00 127.03 0.00 0.00

Empresa Metropolitana de Aguas & Energia 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 84.17 827.72 406.58 0.00 61.93

BSP:EMAE4 vs SRE: Interest Coverage Comparison

For the Utilities - Diversified subindustry, Empresa Metropolitana de Aguas & Energia'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.


Empresa Metropolitana de Aguas & Energia Interest Coverage vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Empresa Metropolitana de Aguas & Energia's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Empresa Metropolitana de Aguas & Energia's Interest Coverage falls into.


BSP:EMAE4
63GF Score
Empresa Metropolitana de Aguas & Energia SA BSP:EMAE4
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Empresa Metropolitana de Aguas & Energia 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.

Empresa Metropolitana de Aguas & Energia'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, Empresa Metropolitana de Aguas & Energia's Interest Expense was R$-0.1 Mil. Its Operating Income was R$-171.9 Mil. And its Long-Term Debt & Capital Lease Obligation was R$0.8 Mil.

Empresa Metropolitana de Aguas & Energia did not have earnings to cover the interest expense.

Empresa Metropolitana de Aguas & Energia's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Empresa Metropolitana de Aguas & Energia's Interest Expense was R$-0.2 Mil. Its Operating Income was R$12.3 Mil. And its Long-Term Debt & Capital Lease Obligation was R$0.8 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*12.324/-0.199
=61.93

* 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 61.93 mean?
Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) has a Interest Coverage of 61.93 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Empresa Metropolitana de Aguas & Energia and its competitors. This is 211% above median its historical median of 19.91. According to the industry distribution chart, Empresa Metropolitana de Aguas & Energia ranks #999999 out of 449 companies in the Utilities - Regulated industry.
Is Empresa Metropolitana de Aguas & Energia's Interest Coverage too high?
Empresa Metropolitana de Aguas & Energia's current Interest Coverage of 61.93 is 211% above median its 10-year median of 19.91. The Utilities - Regulated industry median Interest Coverage is 3.78. Empresa Metropolitana de Aguas & Energia's value of 61.93 is 1538.4% above this industry median. Based on the distribution chart, Empresa Metropolitana de Aguas & Energia ranks #999999 out of 449 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, Empresa Metropolitana de Aguas & Energia has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Empresa Metropolitana de Aguas & Energia's Interest Coverage compare to SRE?
According to the Utilities - Regulated industry distribution chart, Empresa Metropolitana de Aguas & Energia ranks #999999 out of 449 companies for Interest Coverage. This places Empresa Metropolitana de Aguas & Energia in the lower half of its industry. The industry median Interest Coverage is 3.78. Empresa Metropolitana de Aguas & Energia's value of 61.93 is 1538.4% above this benchmark. While the company's 10-year median is 19.91 vs. the industry median of 3.78, Empresa Metropolitana de Aguas & Energia 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 an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 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. Empresa Metropolitana de Aguas & Energia's current Interest Coverage of 61.93 is 1538.4% 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 Empresa Metropolitana de Aguas & Energia and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Empresa Metropolitana de Aguas & Energia's current Interest Coverage is 61.93, which is 211% above median its own 10-year median of 19.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Empresa Metropolitana de Aguas & Energia stock overvalued right now?
Based on GuruFocus' analysis, Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) is currently considered Fairly Valued. The stock's GF Value™ is R$37.23, compared to a current price of R$38.51 — trading 3.4% above its estimated fair value. The current Interest Coverage is 61.93, which is 211% above median its 10-year median of 19.91 and 1538.4% above the Utilities - Regulated industry median of 3.78. Empresa Metropolitana de Aguas & Energia's overall GF Score™ is 63/100 with 3 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 Empresa Metropolitana de Aguas & Energia (BSP:EMAE4), the current Interest Coverage is 61.93 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 Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) Overvalued in 2026?

Based on GuruFocus' analysis, Empresa Metropolitana de Aguas & Energia stock appears to be overvalued. The current stock price of R$38.51 is trading 3.4% above its estimated GF Value™ of R$37.23. GuruFocus considers Empresa Metropolitana de Aguas & Energia to be Fairly Valued.

Key valuation signals for BSP:EMAE4:

  • Interest Coverage: 61.93 (211% above median its 10-year median of 19.91)
  • GF Value™: R$37.23 vs. price of R$38.51 (3.4% above fair value)
  • GF Score™: 63/100 with 3 warning signs
  • Industry Position: 1538.4% above the Utilities - Regulated median (#999999 of 449)

No single metric tells the full story. See the BSP:EMAE4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Empresa Metropolitana de Aguas & Energia Business Description

Address Avenida Jornalista Roberto Marinho, No. 85, 16th Floor 17 andares, Bairro de Cidade Moncoes, Sao Paulo, SP, BRA, 04576-010
Empresa Metropolitana de Aguas & Energia SA is engaged in electricity generation. The company manages a complex hydraulic system that includes dykes, dams, and reservoirs, with notable ones being Billings and Guarapiranga, located in the southern zone of Sao Paulo city, as well as the Sao Paulo and Pedreira pumping stations and the Pinheiros River canal. The company's activities include electricity supply, the construction of energy generation assets, and the provision of operation and maintenance services for power plants and related structures, serving both private companies and public sector entities.
63GF Score

Get the complete analysis for BSP:EMAE4

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

R$38.51
Price
R$37.23
GF Value