Adtran Holdings (FRA:ATN) Interest Coverage: 1.50 (As of Mar. 2026) — 98% Below Median


FRA:ATN Adtran Holdings Inc FRA:ATN
62 GF Score
Price €12.20
GF Value €8.09
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Adtran Holdings Interest Coverage?

Adtran Holdings FRA:ATN -0.39% 62 Interest Coverage is 1.50 as of Mar. 2026, which is 98% below its 10-year median of 63.84. GuruFocus rates FRA:ATN with a GF Score™ of 62/100 and a GF Value™ of €8.09 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,672 Hardware companies, Adtran Holdings ranks worse than 59808.55% 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. Adtran Holdings's Operating Income for the three months ended in Mar. 2026 was €5.5 Mil. Adtran Holdings's Interest Expense for the three months ended in Mar. 2026 was €-3.7 Mil. Adtran Holdings's interest coverage for the quarter that ended in Mar. 2026 was 1.50. The higher the ratio, the stronger the company's financial strength is.

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


FRA:ATN's Interest Coverage is not ranked *
in the Hardware industry.
Industry Median: 13.73
* 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.


Adtran Holdings  (FRA:ATN) 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 .


Adtran Holdings Interest Coverage Related Terms


Adtran Holdings Interest Coverage Historical Data

* Premium members only.

The historical data trend for Adtran Holdings'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.

Adtran Holdings Interest Coverage Chart

Adtran Holdings 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 0.00 0.00 0.00 0.00 0.00

Adtran Holdings 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 0.00 0.00 0.00 0.99 1.50

FRA:ATN vs GILT, HLIT, FEIM: Interest Coverage Comparison

For the Communication Equipment subindustry, Adtran Holdings'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.


Adtran Holdings Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, Adtran Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Adtran Holdings's Interest Coverage falls into.


FRA:ATN
62GF Score
Adtran Holdings Inc FRA:ATN
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Adtran Holdings 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.

Adtran Holdings'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, Adtran Holdings's Interest Expense was €-16.5 Mil. Its Operating Income was €-13.3 Mil. And its Long-Term Debt & Capital Lease Obligation was €209.3 Mil.

Adtran Holdings did not have earnings to cover the interest expense.

Adtran Holdings's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Adtran Holdings's Interest Expense was €-3.7 Mil. Its Operating Income was €5.5 Mil. And its Long-Term Debt & Capital Lease Obligation was €210.5 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*5.514/-3.668
=1.50

* 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 1.50 mean?
Adtran Holdings (FRA:ATN) has a Interest Coverage of 1.50 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Adtran Holdings and its competitors. This is 98% below median its historical median of 63.84. According to the industry distribution chart, Adtran Holdings ranks #999999 out of 1672 companies in the Hardware industry.
Is Adtran Holdings' Interest Coverage too high?
Adtran Holdings' current Interest Coverage of 1.50 is 98% below median its 10-year median of 63.84. The Hardware industry median Interest Coverage is 13.73. Adtran Holdings' value of 1.50 is 89.1% below this industry median. Based on the distribution chart, Adtran Holdings ranks #999999 out of 1672 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Adtran Holdings has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Adtran Holdings' Interest Coverage compare to GILT and HLIT?
According to the Hardware industry distribution chart, Adtran Holdings ranks #999999 out of 1672 companies for Interest Coverage. This places Adtran Holdings in the lower half of its industry. The industry median Interest Coverage is 13.73. Adtran Holdings' value of 1.50 is 89.1% below this benchmark. While the company's 10-year median is 63.84 vs. the industry median of 13.73, Adtran Holdings 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 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. Adtran Holdings's current Interest Coverage of 1.50 is 89.1% 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 Adtran Holdings 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. Adtran Holdings's current Interest Coverage is 1.50, which is 98% below median its own 10-year median of 63.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adtran Holdings stock overvalued right now?
Based on GuruFocus' analysis, Adtran Holdings (FRA:ATN) is currently considered Significantly Overvalued. The stock's GF Value™ is €8.09, compared to a current price of €12.20 — trading 50.8% above its estimated fair value. The current Interest Coverage is 1.50, which is 98% below median its 10-year median of 63.84 and 89.1% below the Hardware industry median of 13.73. Adtran Holdings' overall GF Score™ is 62/100 with 6 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 Adtran Holdings (FRA:ATN), the current Interest Coverage is 1.50 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 Adtran Holdings (FRA:ATN) Overvalued in 2026?

Based on GuruFocus' analysis, Adtran Holdings stock appears to be overvalued. The current stock price of €12.20 is trading 50.8% above its estimated GF Value™ of €8.09. GuruFocus considers Adtran Holdings to be Significantly Overvalued.

Key valuation signals for FRA:ATN:

  • Interest Coverage: 1.50 (98% below median its 10-year median of 63.84)
  • GF Value™: €8.09 vs. price of €12.20 (50.8% above fair value)
  • GF Score™: 62/100 with 6 warning signs
  • Industry Position: 89.1% below the Hardware median (#999999 of 1672)

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


Adtran Holdings Business Description

Address 901 Explorer Boulevard, Huntsville, AL, USA, 35806-2807
Adtran Holdings Inc is a provider of networking and communications platforms, software, and services focused on the broadband access market. It operates under two reportable segments: Network Solutions segment, which includes hardware and software products that enable a digital future that supports the company's Subscriber, Access & Aggregation, and Optical Networking Solutions; and Services & Support segment, which includes network design, implementation, maintenance and cloud-hosted services supporting the company's Subscriber, Access & Aggregation, and Optical Networking Solutions. It generates the majority of its revenue from the Network Solutions segment.
62GF Score

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

€12.20
Price
€8.09
GF Value