Dubai Electricity & Water Authority PJSC (DFM:DEWA) Interest Coverage: 5.23 (As of Jun. 2026) — 51% Below Median

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DFM:DEWA Dubai Electricity & Water Authority PJSC DFM:DEWA
85 GF Score
Price د.إ2.76
GF Value د.إ2.82
Valuation Fairly Valued
! 7 Warning Signs
View Full Analysis

What is Dubai Electricity & Water Authority PJSC Interest Coverage?

Dubai Electricity & Water Authority PJSC DFM:DEWA +0.36% 85 Interest Coverage is 5.23 as of Jun. 2026, which is 51% below its 10-year median of 10.62. GuruFocus rates DFM:DEWA with a GF Score™ of 85/100 and a GF Value™ of د.إ2.82 (Fairly Valued). The stock has 7 warning signs investors should review. Among 450 Utilities - Regulated companies, Dubai Electricity & Water Authority PJSC ranks better than 64.89% 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. Dubai Electricity & Water Authority PJSC's Operating Income for the three months ended in Jun. 2026 was د.إ2,659 Mil. Dubai Electricity & Water Authority PJSC's Interest Expense for the three months ended in Jun. 2026 was د.إ-494 Mil. Dubai Electricity & Water Authority PJSC's interest coverage for the quarter that ended in Jun. 2026 was 5.23. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Dubai Electricity & Water Authority PJSC's Interest Coverage or its related term are showing as below:

DFM:DEWA' s Interest Coverage Range Over the Past 10 Years
Min: 4.2   Med: 10.62   Max: 21.25
Current: 6.44


DFM:DEWA's Interest Coverage is ranked better than
64.89% of 450 companies
in the Utilities - Regulated industry
Industry Median: 3.93 vs DFM:DEWA: 6.44

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


Dubai Electricity & Water Authority PJSC  (DFM:DEWA) 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 .


Dubai Electricity & Water Authority PJSC Interest Coverage Related Terms


Dubai Electricity & Water Authority PJSC Interest Coverage Historical Data

* Premium members only.

The historical data trend for Dubai Electricity & Water Authority PJSC'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.

Dubai Electricity & Water Authority PJSC Interest Coverage Chart

Dubai Electricity & Water Authority PJSC Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.80 12.32 5.13 4.12 5.44

Dubai Electricity & Water Authority PJSC Quarterly Data
Dec11 Dec12 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 6.60 10.35 4.00 3.71 5.23

DFM:DEWA vs SRE, AES: Interest Coverage Comparison

For the Utilities - Diversified subindustry, Dubai Electricity & Water Authority PJSC'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.


Dubai Electricity & Water Authority PJSC Interest Coverage vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Dubai Electricity & Water Authority PJSC's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Dubai Electricity & Water Authority PJSC's Interest Coverage falls into.


DFM:DEWA
85GF Score
Dubai Electricity & Water Authority PJSC DFM:DEWA
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Dubai Electricity & Water Authority PJSC 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.

Dubai Electricity & Water Authority PJSC'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, Dubai Electricity & Water Authority PJSC's Interest Expense was د.إ-1,571 Mil. Its Operating Income was د.إ9,929 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ31,922 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*9928.762/-1570.573
=6.32

Dubai Electricity & Water Authority PJSC's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, Dubai Electricity & Water Authority PJSC's Interest Expense was د.إ-494 Mil. Its Operating Income was د.إ2,659 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ37,720 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*2658.801/-494.314
=5.38

* 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 5.23 mean?
Dubai Electricity & Water Authority PJSC (DFM:DEWA) has a Interest Coverage of 5.23 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Dubai Electricity & Water Authority PJSC and its competitors. This is 51% below median its historical median of 10.62. Over the past decade, Dubai Electricity & Water Authority PJSC's Interest Coverage has ranged from 4.20 to 21.25. According to the industry distribution chart, Dubai Electricity & Water Authority PJSC ranks #158 out of 450 companies in the Utilities - Regulated industry, placing it in the top 35.1%.
Is Dubai Electricity & Water Authority PJSC's Interest Coverage too high?
Dubai Electricity & Water Authority PJSC's current Interest Coverage of 5.23 is 51% below median its 10-year median of 10.62. Over the past 10 years, this metric has ranged from a low of 4.20 to a high of 21.25. The Utilities - Regulated industry median Interest Coverage is 3.93. Dubai Electricity & Water Authority PJSC's value of 5.23 is 33.1% above this industry median. Based on the distribution chart, Dubai Electricity & Water Authority PJSC ranks #158 out of 450 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Dubai Electricity & Water Authority PJSC has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dubai Electricity & Water Authority PJSC's Interest Coverage compare to SRE and AES?
According to the Utilities - Regulated industry distribution chart, Dubai Electricity & Water Authority PJSC ranks #158 out of 450 companies for Interest Coverage. This puts Dubai Electricity & Water Authority PJSC in the upper half of its industry. The industry median Interest Coverage is 3.93. Dubai Electricity & Water Authority PJSC's value of 5.23 is 33.1% above this benchmark. Historically, Dubai Electricity & Water Authority PJSC's own Interest Coverage has ranged from 4.20 to 21.25 over the past decade. While the company's 10-year median is 10.62 vs. the industry median of 3.93, Dubai Electricity & Water Authority PJSC 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 3.93, based on 450 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. Dubai Electricity & Water Authority PJSC's current Interest Coverage of 5.23 is 33.1% 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 Dubai Electricity & Water Authority PJSC and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dubai Electricity & Water Authority PJSC's current Interest Coverage is 5.23, which is 51% below median its own 10-year median of 10.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dubai Electricity & Water Authority PJSC stock overvalued right now?
Based on GuruFocus' analysis, Dubai Electricity & Water Authority PJSC (DFM:DEWA) is currently considered Fairly Valued. The stock's GF Value™ is د.إ2.82, compared to a current price of د.إ2.76 — trading 2.1% below its estimated fair value. The current Interest Coverage is 5.23, which is 51% below median its 10-year median of 10.62 and 33.1% above the Utilities - Regulated industry median of 3.93. Dubai Electricity & Water Authority PJSC's overall GF Score™ is 85/100 with 7 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 Dubai Electricity & Water Authority PJSC (DFM:DEWA), the current Interest Coverage is 5.23 as of Jun. 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 Dubai Electricity & Water Authority PJSC (DFM:DEWA) Overvalued in 2026?

Based on GuruFocus' analysis, Dubai Electricity & Water Authority PJSC stock appears to be undervalued. The current stock price of د.إ2.76 is trading 2.1% below its estimated GF Value™ of د.إ2.82. GuruFocus considers Dubai Electricity & Water Authority PJSC to be Fairly Valued.

Key valuation signals for DFM:DEWA:

  • Interest Coverage: 5.23 (51% below median its 10-year median of 10.62)
  • GF Value™: د.إ2.82 vs. price of د.إ2.76 (2.1% below fair value)
  • GF Score™: 85/100 with 7 warning signs
  • Industry Position: 33.1% above the Utilities - Regulated median (#158 of 450)

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


Dubai Electricity & Water Authority PJSC Business Description

Address Sheikh Rashid Road, Umm Hurair 2, P.O. Box 564, Happiness Center Zaabeel East, Umm Hureir, Dubai, ARE
Dubai Electricity & Water Authority PJSC is engaged in water desalination and distribution and its generation, transmission, and distribution of electricity, throughout the Emirate of Dubai. The company operates into four segments; DEWA is engaged in the generation, transmission, and distribution of electricity and water desalination, transmission and distribution to residential, commercial, industrial, and government; EMPOWER is engaged in the provision of district cooling, maintenance of central cooling plants and manufacturing and sale of insulated pipes; IWPP is engaged in the development, operation and maintenance of power and water plants; and Others operations include purification and sale of potable water, and other. It generates maximum revenue from the DEWA segment.
85GF Score

Get the complete analysis for DFM:DEWA

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

د.إ2.76
Price
د.إ2.82
GF Value