CTT-Correios de Portugal (FRA:C7T) Interest Coverage: 6.93 (As of Dec. 2025) — Near Median


FRA:C7T CTT-Correios de Portugal SA FRA:C7T
81 GF Score
Price €5.92
GF Value €6.03
Valuation Fairly Valued
! 3 Warning Signs
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What is CTT-Correios de Portugal Interest Coverage?

CTT-Correios de Portugal FRA:C7T +0.94% 81 Interest Coverage is 6.93 as of Dec. 2025, which is 3% above its 10-year median of 6.72. GuruFocus rates FRA:C7T with a GF Score™ of 81/100 and a GF Value™ of €6.03 (Fairly Valued). The stock has 3 warning signs investors should review. Among 838 Transportation companies, CTT-Correios de Portugal ranks worse than 50.95% 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. CTT-Correios de Portugal's Operating Income for the three months ended in Dec. 2025 was €39 Mil. CTT-Correios de Portugal's Interest Expense for the three months ended in Dec. 2025 was €-6 Mil. CTT-Correios de Portugal's interest coverage for the quarter that ended in Dec. 2025 was 6.93. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for CTT-Correios de Portugal's Interest Coverage or its related term are showing as below:

FRA:C7T' s Interest Coverage Range Over the Past 10 Years
Min: 4.02   Med: 6.72   Max: 11.82
Current: 5.59


FRA:C7T's Interest Coverage is ranked worse than
50.95% of 838 companies
in the Transportation industry
Industry Median: 5.72 vs FRA:C7T: 5.59

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


CTT-Correios de Portugal  (FRA:C7T) 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 .


CTT-Correios de Portugal Interest Coverage Related Terms


CTT-Correios de Portugal Interest Coverage Historical Data

* Premium members only.

The historical data trend for CTT-Correios de Portugal'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.

CTT-Correios de Portugal Interest Coverage Chart

CTT-Correios de Portugal 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 7.65 8.55 7.46 5.24 5.53

CTT-Correios de Portugal Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 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 5.98 6.11 5.50 4.10 6.93

FRA:C7T vs UPS, FDX, JBHT: Interest Coverage Comparison

For the Integrated Freight & Logistics subindustry, CTT-Correios de Portugal'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.


CTT-Correios de Portugal Interest Coverage vs Transportation Industry

For the Transportation industry and Industrials sector, CTT-Correios de Portugal's Interest Coverage distribution charts can be found below:

* The bar in red indicates where CTT-Correios de Portugal's Interest Coverage falls into.


FRA:C7T
81GF Score
CTT-Correios de Portugal SA FRA:C7T
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

CTT-Correios de Portugal 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.

CTT-Correios de Portugal'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, CTT-Correios de Portugal's Interest Expense was €-20 Mil. Its Operating Income was €111 Mil. And its Long-Term Debt & Capital Lease Obligation was €504 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*110.65/-20.003
=5.53

CTT-Correios de Portugal's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the three months ended in Dec. 2025, CTT-Correios de Portugal's Interest Expense was €-6 Mil. Its Operating Income was €39 Mil. And its Long-Term Debt & Capital Lease Obligation was €504 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*39.124/-5.642
=6.93

* 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 6.93 mean?
CTT-Correios de Portugal (FRA:C7T) has a Interest Coverage of 6.93 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on CTT-Correios de Portugal and its competitors. This is near median its historical median of 6.72. Over the past decade, CTT-Correios de Portugal's Interest Coverage has ranged from 4.02 to 11.82. According to the industry distribution chart, CTT-Correios de Portugal ranks #427 out of 838 companies in the Transportation industry, placing it in the top 51%.
Is CTT-Correios de Portugal's Interest Coverage too high?
CTT-Correios de Portugal's current Interest Coverage of 6.93 is near median its 10-year median of 6.72. Over the past 10 years, this metric has ranged from a low of 4.02 to a high of 11.82. The Transportation industry median Interest Coverage is 5.72. CTT-Correios de Portugal's value of 6.93 is 21.2% above this industry median. Based on the distribution chart, CTT-Correios de Portugal ranks #427 out of 838 companies in the Transportation industry, which is below the industry midpoint. Overall, CTT-Correios de Portugal has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does CTT-Correios de Portugal's Interest Coverage compare to UPS and FDX?
According to the Transportation industry distribution chart, CTT-Correios de Portugal ranks #427 out of 838 companies for Interest Coverage. This places CTT-Correios de Portugal in the lower half of its industry. The industry median Interest Coverage is 5.72. CTT-Correios de Portugal's value of 6.93 is 21.2% above this benchmark. Historically, CTT-Correios de Portugal's own Interest Coverage has ranged from 4.02 to 11.82 over the past decade. While the company's 10-year median is 6.72 vs. the industry median of 5.72, CTT-Correios de Portugal 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 Transportation company?
The median Interest Coverage among Transportation companies is 5.72, based on 838 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. CTT-Correios de Portugal's current Interest Coverage of 6.93 is 21.2% 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 CTT-Correios de Portugal and its competitors. For the Transportation industry, the median Interest Coverage is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CTT-Correios de Portugal's current Interest Coverage is 6.93, which is near median its own 10-year median of 6.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CTT-Correios de Portugal stock overvalued right now?
Based on GuruFocus' analysis, CTT-Correios de Portugal (FRA:C7T) is currently considered Fairly Valued. The stock's GF Value™ is €6.03, compared to a current price of €5.92 — trading 1.8% below its estimated fair value. The current Interest Coverage is 6.93, which is near median its 10-year median of 6.72 and 21.2% above the Transportation industry median of 5.72. CTT-Correios de Portugal's overall GF Score™ is 81/100 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 CTT-Correios de Portugal (FRA:C7T), the current Interest Coverage is 6.93 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 CTT-Correios de Portugal (FRA:C7T) Overvalued in 2026?

Based on GuruFocus' analysis, CTT-Correios de Portugal stock appears to be undervalued. The current stock price of €5.92 is trading 1.8% below its estimated GF Value™ of €6.03. GuruFocus considers CTT-Correios de Portugal to be Fairly Valued.

Key valuation signals for FRA:C7T:

  • Interest Coverage: 6.93 (near median its 10-year median of 6.72)
  • GF Value™: €6.03 vs. price of €5.92 (1.8% below fair value)
  • GF Score™: 81/100 with 3 warning signs
  • Industry Position: 21.2% above the Transportation median (#427 of 838)

No single metric tells the full story. See the FRA:C7T stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


CTT-Correios de Portugal Business Description

Address Avenida dos Combatentes 43, No.1643-001, 4th Floor, Lisbon, PRT, 1999-001
CTT-Correios de Portugal SA operates in the postal and logistics sector, with operations organised into the segments Mail & Services, Express & Parcels, E-commerce Solutions, and Financial Services. The Mail & Services area comprises Mail, Business Solutions, and Financial and Retail Services. Mail is the main business, Business Solutions uses digitalisation to strengthen customer relationships, and Financial and Retail Services are supported by the retail network. Products and services include mail delivery, express and shipping solutions such as Basic Mail, Track Mail, and Express for Tomorrow, digital platforms, document management, business process services, payments, financial intermediation, insurance, and retail services. It operates in Portugal, Spain and the rest of the world.
81GF Score

Get the complete analysis for FRA:C7T

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

€5.92
Price
€6.03
GF Value