Frequency ElectronicsFRA:98K -11.79%62 Interest Coverage is 60.06 as of Jan. 2026, which is 30% above its 10-year median of 46.05. GuruFocus rates FRA:98K with a GF Score™ of 62/100 and a GF Value™ of €12.40 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,672 Hardware companies, Frequency Electronics ranks better than 77.57% 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. Frequency Electronics's
Operating Income
for the
three
months ended in Jan. 2026 was €1.08 Mil. Frequency Electronics's Interest Expense for the
three
months ended in Jan. 2026 was €-0.02 Mil.
Frequency Electronics's interest coverage for the quarter that ended in Jan. 2026 was 60.06.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Frequency Electronics's Interest Coverage or its related term are showing as below:
FRA:98K'
s Interest Coverage Range Over the Past 10 Years
Min: 18.84 Med: 46.05 Max: 112.81
Current: 72.82
FRA:98K's Interest Coverage is ranked better than 77.57% of 1672
companies
in the Hardware industry
Industry Median: 13.73
vs FRA:98K: 72.82
Frequency Electronics (FRA:98K) 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 .
Frequency Electronics Interest Coverage Related Terms
Frequency Electronics Interest Coverage Historical Data
* Premium members only.
The historical data trend for Frequency Electronics'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.
FRA:98K vs NTGR, CLFD, GILT: Interest Coverage Comparison
For the Communication Equipment subindustry, Frequency Electronics'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.
Frequency Electronics Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Frequency Electronics's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Frequency Electronics's Interest Coverage falls into.
Frequency Electronics 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:
* 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.
Frequency Electronics (FRA:98K) has a Interest Coverage of 60.06 as of Jan. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Frequency Electronics and its competitors. This is 30% above median its historical median of 46.05. Over the past decade, Frequency Electronics' Interest Coverage has ranged from 18.84 to 112.81. According to the industry distribution chart, Frequency Electronics ranks #375 out of 1672 companies in the Hardware industry, placing it in the top 22.4%.
Is Frequency Electronics' Interest Coverage too high?
Frequency Electronics' current Interest Coverage of 60.06 is 30% above median its 10-year median of 46.05. Over the past 10 years, this metric has ranged from a low of 18.84 to a high of 112.81. The Hardware industry median Interest Coverage is 13.73. Frequency Electronics' value of 60.06 is 337.4% above this industry median. Based on the distribution chart, Frequency Electronics ranks #375 out of 1672 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Frequency Electronics has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Frequency Electronics' Interest Coverage compare to NTGR and CLFD?
According to the Hardware industry distribution chart, Frequency Electronics ranks #375 out of 1672 companies for Interest Coverage. This places Frequency Electronics in the top 22% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 13.73. Frequency Electronics' value of 60.06 is 337.4% above this benchmark. Historically, Frequency Electronics' own Interest Coverage has ranged from 18.84 to 112.81 over the past decade. While the company's 10-year median is 46.05 vs. the industry median of 13.73, Frequency Electronics 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.73, based on 1,672 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. Frequency Electronics's current Interest Coverage of 60.06 is 337.4% 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 Frequency Electronics and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frequency Electronics's current Interest Coverage is 60.06, which is 30% above median its own 10-year median of 46.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frequency Electronics stock overvalued right now?
Based on GuruFocus' analysis, Frequency Electronics (FRA:98K) is currently considered Significantly Overvalued. The stock's GF Value™ is €12.40, compared to a current price of €51.60 — trading 316.1% above its estimated fair value. The current Interest Coverage is 60.06, which is 30% above median its 10-year median of 46.05 and 337.4% above the Hardware industry median of 13.73. Frequency Electronics' overall GF Score™ is 62/100 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 Frequency Electronics (FRA:98K), the current Interest Coverage is 60.06 as of Jan. 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 Frequency Electronics (FRA:98K) Overvalued in 2026?
Based on GuruFocus' analysis, Frequency Electronics stock appears to be overvalued.
The current stock price of €51.60 is trading 316.1% above its estimated GF Value™ of €12.40.
GuruFocus considers Frequency Electronics to be Significantly Overvalued.
Key valuation signals for FRA:98K:
Interest Coverage: 60.06 (30% above median its 10-year median of 46.05)
GF Value™: €12.40 vs. price of €51.60 (316.1% above fair value)
Industry Position: 337.4% above the Hardware median (#375 of 1672)
No single metric tells the full story. See the FRA:98K stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frequency Electronics Inc is engaged in the design, development, and manufacture of high-precision timing, and frequency control products for space, air, sea, and terrestrial applications. The company has FEI-NY and FEI-Zyfer reportable segments. It derives the majority of its revenues from the FEI-NY segment. FEI-NY segment operations consist principally of precision time and frequency control products used in three principal markets namely communication satellites (both commercial and U.S. Government-funded); terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military.
62GF Score
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