SeadrillHAM:P4F +1.20%56 Interest Coverage is 1.67 as of Mar. 2026, which is 50% below its 10-year median of 3.31. GuruFocus rates HAM:P4F with a GF Score™ of 56/100 and a GF Value™ of €39.66. The stock has 4 warning signs investors should review. Among 728 Oil & Gas companies, Seadrill ranks worse than 89.29% 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. Seadrill's
Operating Income
for the
three
months ended in Mar. 2026 was €22 Mil. Seadrill's Interest Expense for the
three
months ended in Mar. 2026 was €-13 Mil.
Seadrill's interest coverage for the quarter that ended in Mar. 2026 was 1.67.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Seadrill's Interest Coverage or its related term are showing as below:
HAM:P4F'
s Interest Coverage Range Over the Past 10 Years
Min: 1.15 Med: 3.31 Max: 5.75
Current: 1.26
HAM:P4F's Interest Coverage is ranked worse than 89.29% of 728
companies
in the Oil & Gas industry
Industry Median: 5.84
vs HAM:P4F: 1.26
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 .
Seadrill Interest Coverage Related Terms
Seadrill Interest Coverage Historical Data
* Premium members only.
The historical data trend for Seadrill'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.
HAM:P4F vs SOC, HP, PTEN: Interest Coverage Comparison
For the Oil & Gas Drilling subindustry, Seadrill'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.
Seadrill Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Seadrill's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Seadrill'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.
Seadrill (HAM:P4F) has a Interest Coverage of 1.67 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Seadrill and its competitors. This is 50% below median its historical median of 3.31. Over the past decade, Seadrill's Interest Coverage has ranged from 1.15 to 5.75. According to the industry distribution chart, Seadrill ranks #650 out of 728 companies in the Oil & Gas industry, placing it in the top 89.3%.
Is Seadrill's Interest Coverage too high?
Seadrill's current Interest Coverage of 1.67 is 50% below median its 10-year median of 3.31. Over the past 10 years, this metric has ranged from a low of 1.15 to a high of 5.75. The Oil & Gas industry median Interest Coverage is 5.84. Seadrill's value of 1.67 is 71.4% below this industry median. Based on the distribution chart, Seadrill ranks #650 out of 728 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Seadrill has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does Seadrill's Interest Coverage compare to SOC and HP?
According to the Oil & Gas industry distribution chart, Seadrill ranks #650 out of 728 companies for Interest Coverage. This places Seadrill in the lower half of its industry. The industry median Interest Coverage is 5.84. Seadrill's value of 1.67 is 71.4% below this benchmark. Historically, Seadrill's own Interest Coverage has ranged from 1.15 to 5.75 over the past decade. While the company's 10-year median is 3.31 vs. the industry median of 5.84, Seadrill 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 an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.84, based on 728 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. Seadrill's current Interest Coverage of 1.67 is 71.4% 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 Seadrill and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Seadrill's current Interest Coverage is 1.67, which is 50% below median its own 10-year median of 3.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Seadrill stock overvalued right now?
Seadrill (HAM:P4F) has a current Interest Coverage of 1.67. The stock's GF Value™ is €39.66, compared to a current price of €33.80 — trading 14.8% below its estimated fair value. The current Interest Coverage is 1.67, which is 50% below median its 10-year median of 3.31 and 71.4% below the Oil & Gas industry median of 5.84. Seadrill's overall GF Score™ is 56/100 with 4 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 Seadrill (HAM:P4F), the current Interest Coverage is 1.67 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 Seadrill (HAM:P4F) Overvalued in 2026?
Based on GuruFocus' analysis, Seadrill stock appears to be undervalued.
The current stock price of €33.80 is trading 14.8% below its estimated GF Value™ of €39.66.
Key valuation signals for HAM:P4F:
Interest Coverage: 1.67 (50% below median its 10-year median of 3.31)
GF Value™: €39.66 vs. price of €33.80 (14.8% below fair value)
Industry Position: 71.4% below the Oil & Gas median (#650 of 728)
No single metric tells the full story. See the HAM:P4F stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Seadrill Ltd is an offshore drilling contractor company. The company is engaged in providing offshore drilling services to the oil and gas industry. The primary business of the company is the ownership and operation of drillships, semi-submersible rigs, and jack-up rigs for operations in shallow to ultra-deepwater areas in both benign and harsh environments. The geographical segments of the company are the United States, Brazil, Angola, Norway, and others. The company derives maximum revenue from Brazil.
56GF Score
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