IntelsatFRA:IJS.PFD 4 Interest Coverage is 0.57 as of Sep. 2021, which is 38% below its 10-year median of 0.92. GuruFocus rates FRA:IJS.PFD with a GF Score™ of 4/100. The stock has 10 warning signs investors should review.
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. Intelsat's
Operating Income
for the
three
months ended in Sep. 2021 was €61.40 Mil. Intelsat's Interest Expense for the
three
months ended in Sep. 2021 was €-107.61 Mil.
Intelsat's interest coverage for the quarter that ended in Sep. 2021 was 0.57.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Intelsat SAs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Intelsat's Interest Coverage or its related term are showing as below:
FRA:IJS.PFD'
s Interest Coverage Range Over the Past 10 Years
Min: 0.31 Med: 0.92 Max: 1.32
Current: 0.31
FRA:IJS.PFD's Interest Coverage is not ranked
in the Telecommunication Services industry.
Industry Median: 4.715
vs FRA:IJS.PFD: 0.31
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 .
Intelsat Interest Coverage Related Terms
Intelsat Interest Coverage Historical Data
* Premium members only.
The historical data trend for Intelsat'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.
For the Telecom Services subindustry, Intelsat'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.
Intelsat Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Intelsat's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Intelsat's Interest Coverage falls into.
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.
Intelsat (FRA:IJS.PFD) has a Interest Coverage of 0.57 as of Sep. 2021. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Intelsat and its competitors. This is 38% below median its historical median of 0.92. Over the past decade, Intelsat's Interest Coverage has ranged from 0.31 to 1.32.
Is Intelsat's Interest Coverage too high?
Intelsat's current Interest Coverage of 0.57 is 38% below median its 10-year median of 0.92. Over the past 10 years, this metric has ranged from a low of 0.31 to a high of 1.32. The Telecommunication Services industry median Interest Coverage is 4.72. Intelsat's value of 0.57 is 87.9% below this industry median. Overall, Intelsat has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Intelsat's Interest Coverage compare to competitors?
Intelsat's Interest Coverage of 0.57 can be compared against companies in the Telecommunication Services industry. The industry median Interest Coverage is 4.72. Intelsat's value of 0.57 is 87.9% below this benchmark. Historically, Intelsat's own Interest Coverage has ranged from 0.31 to 1.32 over the past decade. While the company's 10-year median is 0.92 vs. the industry median of 4.72, Intelsat 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 Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.72, based on 286 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. Intelsat's current Interest Coverage of 0.57 is 87.9% 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 Intelsat and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Intelsat's current Interest Coverage is 0.57, which is 38% below median its own 10-year median of 0.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Intelsat stock overvalued right now?
Intelsat (FRA:IJS.PFD) has a current Interest Coverage of 0.57. The current Interest Coverage is 0.57, which is 38% below median its 10-year median of 0.92 and 87.9% below the Telecommunication Services industry median of 4.72. Intelsat's overall GF Score™ is 4/100 with 10 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 Intelsat (FRA:IJS.PFD), the current Interest Coverage is 0.57 as of Sep. 2021. 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.
Intelsat SA is a Luxembourg-based company which operates satellite services business. It is engaged in providing diversified communications services to the media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, and a multinational corporation. In addition, it provides commercial satellite communication services to the United States government and other select military organizations and their contractors. Intelsat operates through a single segment being Providing satellite services. The company earns the majority of its revenue from North America.
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