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Kosmos EnergyLSE:KOS +0.27%61 Interest Coverage is 4.82 as of Jun. 2026, which is 19% below its 10-year median of 5.95. GuruFocus rates LSE:KOS with a GF Score™ of 61/100 and a GF Value™ of £2.23 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 744 Oil & Gas companies, Kosmos Energy ranks worse than 95.7% 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. Kosmos Energy's
Operating Income
for the
three
months ended in Jun. 2026 was £214 Mil. Kosmos Energy's Interest Expense for the
three
months ended in Jun. 2026 was £-44 Mil.
Kosmos Energy's interest coverage for the quarter that ended in Jun. 2026 was 4.82.
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. Kosmos Energy Ltds 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 Kosmos Energy's Interest Coverage or its related term are showing as below:
LSE:KOS'
s Interest Coverage Range Over the Past 10 Years
Min: 0.57 Med: 5.95 Max: 8.98
Current: 0.57
LSE:KOS's Interest Coverage is ranked worse than 95.7% of 744
companies
in the Oil & Gas industry
Industry Median: 6.125
vs LSE:KOS: 0.57
Kosmos Energy (LSE:KOS) 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 .
Kosmos Energy Interest Coverage Related Terms
Kosmos Energy Interest Coverage Historical Data
* Premium members only.
The historical data trend for Kosmos Energy'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.
LSE:KOS vs KRP, DMLP, TBN: Interest Coverage Comparison
For the Oil & Gas E&P subindustry, Kosmos Energy'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.
Kosmos Energy Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Kosmos Energy's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Kosmos Energy'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.
Kosmos Energy (LSE:KOS) has a Interest Coverage of 4.82 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Kosmos Energy and its competitors. This is 19% below median its historical median of 5.95. Over the past decade, Kosmos Energy's Interest Coverage has ranged from 0.57 to 8.98. According to the industry distribution chart, Kosmos Energy ranks #712 out of 744 companies in the Oil & Gas industry, placing it in the top 95.7%.
Is Kosmos Energy's Interest Coverage too high?
Kosmos Energy's current Interest Coverage of 4.82 is 19% below median its 10-year median of 5.95. Over the past 10 years, this metric has ranged from a low of 0.57 to a high of 8.98. The Oil & Gas industry median Interest Coverage is 6.13. Kosmos Energy's value of 4.82 is 21.3% below this industry median. Based on the distribution chart, Kosmos Energy ranks #712 out of 744 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Kosmos Energy has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kosmos Energy's Interest Coverage compare to KRP and DMLP?
According to the Oil & Gas industry distribution chart, Kosmos Energy ranks #712 out of 744 companies for Interest Coverage. This places Kosmos Energy in the lower half of its industry. The industry median Interest Coverage is 6.13. Kosmos Energy's value of 4.82 is 21.3% below this benchmark. Historically, Kosmos Energy's own Interest Coverage has ranged from 0.57 to 8.98 over the past decade. While the company's 10-year median is 5.95 vs. the industry median of 6.13, Kosmos Energy 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 6.13, based on 744 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. Kosmos Energy's current Interest Coverage of 4.82 is 21.3% 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 Kosmos Energy and its competitors. For the Oil & Gas industry, the median Interest Coverage is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kosmos Energy's current Interest Coverage is 4.82, which is 19% below median its own 10-year median of 5.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kosmos Energy stock overvalued right now?
Based on GuruFocus' analysis, Kosmos Energy (LSE:KOS) is currently considered Modestly Undervalued. The stock's GF Value™ is £2.23, compared to a current price of £1.83 — trading 18.2% below its estimated fair value. The current Interest Coverage is 4.82, which is 19% below median its 10-year median of 5.95 and 21.3% below the Oil & Gas industry median of 6.13. Kosmos Energy's overall GF Score™ is 61/100 with 8 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 Kosmos Energy (LSE:KOS), the current Interest Coverage is 4.82 as of Jun. 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 Kosmos Energy (LSE:KOS) Overvalued in 2026?
Based on GuruFocus' analysis, Kosmos Energy stock appears to be undervalued.
The current stock price of £1.83 is trading 18.2% below its estimated GF Value™ of £2.23.
GuruFocus considers Kosmos Energy to be Modestly Undervalued.
Key valuation signals for LSE:KOS:
Interest Coverage: 4.82 (19% below median its 10-year median of 5.95)
GF Value™: £2.23 vs. price of £1.83 (18.2% below fair value)
Industry Position: 21.3% below the Oil & Gas median (#712 of 744)
No single metric tells the full story. See the LSE:KOS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kosmos Energy Ltd is a deepwater exploration and production company focused on meeting the world's growing demand for energy. It has diversified oil and gas production from assets offshore Ghana, Equatorial Guinea, Mauritania, Senegal and the Gulf of America. The Company had operations in four geographic reporting segments: Ghana, Equatorial Guinea, Mauritania/Senegal and the Gulf of America. The majority of revenue is derived from the Ghana segment.
61GF Score
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