Gamma Communications (FRA:6GC) Interest Coverage: 17.85 (As of Dec. 2025) — 78% Below Median


FRA:6GC Gamma Communications PLC FRA:6GC
86 GF Score
Price €9.80
GF Value €17.76
Valuation Significantly Undervalued
! 3 Warning Signs
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What is Gamma Communications Interest Coverage?

Gamma Communications FRA:6GC -0.51% 86 Interest Coverage is 17.85 as of Dec. 2025, which is 78% below its 10-year median of 80.52. GuruFocus rates FRA:6GC with a GF Score™ of 86/100 and a GF Value™ of €17.76 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 284 Telecommunication Services companies, Gamma Communications ranks better than 76.76% 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. Gamma Communications's Operating Income for the six months ended in Dec. 2025 was €65.3 Mil. Gamma Communications's Interest Expense for the six months ended in Dec. 2025 was €-3.7 Mil. Gamma Communications's interest coverage for the quarter that ended in Dec. 2025 was 17.85. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Gamma Communications's Interest Coverage or its related term are showing as below:

FRA:6GC' s Interest Coverage Range Over the Past 10 Years
Min: 16.64   Med: 80.52   Max: No Debt
Current: 16.64


FRA:6GC's Interest Coverage is ranked better than
76.76% of 284 companies
in the Telecommunication Services industry
Industry Median: 4.685 vs FRA:6GC: 16.64

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


Gamma Communications  (FRA:6GC) 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 .


Gamma Communications Interest Coverage Related Terms


Gamma Communications Interest Coverage Historical Data

* Premium members only.

The historical data trend for Gamma Communications'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.

Gamma Communications Interest Coverage Chart

Gamma Communications 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 56.93 50.30 92.19 50.17 16.64

Gamma Communications Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 81.65 57.10 44.61 15.31 17.85

FRA:6GC vs TMUS, VZ, T: Interest Coverage Comparison

For the Telecom Services subindustry, Gamma Communications'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.


Gamma Communications Interest Coverage vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Gamma Communications's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Gamma Communications's Interest Coverage falls into.


FRA:6GC
86GF Score
Gamma Communications PLC FRA:6GC
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Gamma Communications 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.

Gamma Communications'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, Gamma Communications's Interest Expense was €-7.0 Mil. Its Operating Income was €116.0 Mil. And its Long-Term Debt & Capital Lease Obligation was €0.0 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*116.039/-6.974
=16.64

Gamma Communications's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Gamma Communications's Interest Expense was €-3.7 Mil. Its Operating Income was €65.3 Mil. And its Long-Term Debt & Capital Lease Obligation was €0.0 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*65.279/-3.658
=17.85

* 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 17.85 mean?
Gamma Communications (FRA:6GC) has a Interest Coverage of 17.85 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Gamma Communications and its competitors. This is 78% below median its historical median of 80.52. Over the past decade, Gamma Communications' Interest Coverage has ranged from 16.64 to 10,000.00. According to the industry distribution chart, Gamma Communications ranks #66 out of 284 companies in the Telecommunication Services industry, placing it in the top 23.2%.
Is Gamma Communications' Interest Coverage too high?
Gamma Communications' current Interest Coverage of 17.85 is 78% below median its 10-year median of 80.52. Over the past 10 years, this metric has ranged from a low of 16.64 to a high of 10,000.00. The Telecommunication Services industry median Interest Coverage is 4.69. Gamma Communications' value of 17.85 is 281% above this industry median. Based on the distribution chart, Gamma Communications ranks #66 out of 284 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Gamma Communications has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gamma Communications' Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Gamma Communications ranks #66 out of 284 companies for Interest Coverage. This places Gamma Communications in the top 23% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 4.69. Gamma Communications' value of 17.85 is 281% above this benchmark. Historically, Gamma Communications' own Interest Coverage has ranged from 16.64 to 10,000.00 over the past decade. While the company's 10-year median is 80.52 vs. the industry median of 4.69, Gamma Communications 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 Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.69, based on 284 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. Gamma Communications's current Interest Coverage of 17.85 is 281% 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 Gamma Communications and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gamma Communications's current Interest Coverage is 17.85, which is 78% below median its own 10-year median of 80.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gamma Communications stock overvalued right now?
Based on GuruFocus' analysis, Gamma Communications (FRA:6GC) is currently considered Significantly Undervalued. The stock's GF Value™ is €17.76, compared to a current price of €9.80 — trading 44.8% below its estimated fair value. The current Interest Coverage is 17.85, which is 78% below median its 10-year median of 80.52 and 281% above the Telecommunication Services industry median of 4.69. Gamma Communications' overall GF Score™ is 86/100 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 Gamma Communications (FRA:6GC), the current Interest Coverage is 17.85 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 Gamma Communications (FRA:6GC) Overvalued in 2026?

Based on GuruFocus' analysis, Gamma Communications stock appears to be undervalued. The current stock price of €9.80 is trading 44.8% below its estimated GF Value™ of €17.76. GuruFocus considers Gamma Communications to be Significantly Undervalued.

Key valuation signals for FRA:6GC:

  • Interest Coverage: 17.85 (78% below median its 10-year median of 80.52)
  • GF Value™: €17.76 vs. price of €9.80 (44.8% below fair value)
  • GF Score™: 86/100 with 3 warning signs
  • Industry Position: 281% above the Telecommunication Services median (#66 of 284)

No single metric tells the full story. See the FRA:6GC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Gamma Communications Business Description

Other Exchanges GAMAl:UKGAMA:UK
Address 63 Saint Mary Axe, 3rd Floor, London, Berkshire, GBR, EC3A 8AA
Gamma Communications PLC is a supplier of Unified Communications as a Service (UCaaS) in the United Kingdom and other markets, supplying communication solutions directly and via its network of trusted channel partners. The company offers various products across categories including Unified Communications, Voice Enablement, and Connectivity. The company also offers cybersecurity and managed enterprise solutions. Its operating segments are Gamma Business, Gamma Enterprise, Europe, and Central Functions. The majority of the company's revenue is generated from the Gamma Business segment which sells its products to smaller businesses in the UK. Geographically, the company generates a majority of its revenue from the United Kingdom and the rest from Europe.
86GF Score

Get the complete analysis for FRA:6GC

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

€9.80
Price
€17.76
GF Value