Merko Ehitus AS (LTS:0JKW) Interest Coverage: 37.87 (As of Jun. 2026) — 41% Above Median

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LTS:0JKW Merko Ehitus AS LTS:0JKW
70 GF Score
Price €27.55
GF Value €13.85
! 9 Warning Signs
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What is Merko Ehitus AS Interest Coverage?

Merko Ehitus AS LTS:0JKW 70 Interest Coverage is 37.87 as of Jun. 2026, which is 41% above its 10-year median of 26.88. GuruFocus rates LTS:0JKW with a GF Score™ of 70/100 and a GF Value™ of €13.85. The stock has 9 warning signs investors should review. Among 1,363 Construction companies, Merko Ehitus AS ranks better than 73.73% 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. Merko Ehitus AS's Operating Income for the three months ended in Jun. 2026 was €7.0 Mil. Merko Ehitus AS's Interest Expense for the three months ended in Jun. 2026 was €-0.2 Mil. Merko Ehitus AS's interest coverage for the quarter that ended in Jun. 2026 was 37.87. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Merko Ehitus AS's Interest Coverage or its related term are showing as below:

LTS:0JKW' s Interest Coverage Range Over the Past 10 Years
Min: 8.88   Med: 26.88   Max: 44.02
Current: 30.12


LTS:0JKW's Interest Coverage is ranked better than
73.73% of 1363 companies
in the Construction industry
Industry Median: 8.08 vs LTS:0JKW: 30.12

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


Merko Ehitus AS  (LTS:0JKW) 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 .


Merko Ehitus AS Interest Coverage Related Terms


Merko Ehitus AS Interest Coverage Historical Data

* Premium members only.

The historical data trend for Merko Ehitus AS'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.

Merko Ehitus AS Interest Coverage Chart

Merko Ehitus AS 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 44.02 27.51 15.35 37.11 38.68

Merko Ehitus AS Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 47.17 60.25 12.08 7.61 37.87

LTS:0JKW vs PWR, FIX, EME: Interest Coverage Comparison

For the Engineering & Construction subindustry, Merko Ehitus AS'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.


Merko Ehitus AS Interest Coverage vs Construction Industry

For the Construction industry and Industrials sector, Merko Ehitus AS's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Merko Ehitus AS's Interest Coverage falls into.


LTS:0JKW
70GF Score
Merko Ehitus AS LTS:0JKW
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Merko Ehitus AS 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.

Merko Ehitus AS'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, Merko Ehitus AS's Interest Expense was €-0.8 Mil. Its Operating Income was €32.3 Mil. And its Long-Term Debt & Capital Lease Obligation was €30.0 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*32.34/-0.836
=38.68

Merko Ehitus AS's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, Merko Ehitus AS's Interest Expense was €-0.2 Mil. Its Operating Income was €7.0 Mil. And its Long-Term Debt & Capital Lease Obligation was €61.3 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*7.043/-0.186
=37.87

* 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 37.87 mean?
Merko Ehitus AS (LTS:0JKW) has a Interest Coverage of 37.87 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Merko Ehitus AS and its competitors. This is 41% above median its historical median of 26.88. Over the past decade, Merko Ehitus AS's Interest Coverage has ranged from 8.88 to 44.02. According to the industry distribution chart, Merko Ehitus AS ranks #358 out of 1363 companies in the Construction industry, placing it in the top 26.3%.
Is Merko Ehitus AS's Interest Coverage too high?
Merko Ehitus AS's current Interest Coverage of 37.87 is 41% above median its 10-year median of 26.88. Over the past 10 years, this metric has ranged from a low of 8.88 to a high of 44.02. The Construction industry median Interest Coverage is 8.08. Merko Ehitus AS's value of 37.87 is 368.7% above this industry median. Based on the distribution chart, Merko Ehitus AS ranks #358 out of 1363 companies in the Construction industry, which is above the industry midpoint. Overall, Merko Ehitus AS has a GF Score™ of 70/100, reflecting its overall financial health beyond just this single metric.
How does Merko Ehitus AS's Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, Merko Ehitus AS ranks #358 out of 1363 companies for Interest Coverage. This puts Merko Ehitus AS in the upper half of its industry. The industry median Interest Coverage is 8.08. Merko Ehitus AS's value of 37.87 is 368.7% above this benchmark. Historically, Merko Ehitus AS's own Interest Coverage has ranged from 8.88 to 44.02 over the past decade. While the company's 10-year median is 26.88 vs. the industry median of 8.08, Merko Ehitus AS 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 Construction company?
The median Interest Coverage among Construction companies is 8.08, based on 1,363 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. Merko Ehitus AS's current Interest Coverage of 37.87 is 368.7% 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 Merko Ehitus AS and its competitors. For the Construction industry, the median Interest Coverage is 8.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merko Ehitus AS's current Interest Coverage is 37.87, which is 41% above median its own 10-year median of 26.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merko Ehitus AS stock overvalued right now?
Merko Ehitus AS (LTS:0JKW) has a current Interest Coverage of 37.87. The stock's GF Value™ is €13.85, compared to a current price of €27.55 — trading 98.9% above its estimated fair value. The current Interest Coverage is 37.87, which is 41% above median its 10-year median of 26.88 and 368.7% above the Construction industry median of 8.08. Merko Ehitus AS's overall GF Score™ is 70/100 with 9 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 Merko Ehitus AS (LTS:0JKW), the current Interest Coverage is 37.87 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 Merko Ehitus AS (LTS:0JKW) Overvalued in 2026?

Based on GuruFocus' analysis, Merko Ehitus AS stock appears to be overvalued. The current stock price of €27.55 is trading 98.9% above its estimated GF Value™ of €13.85.

Key valuation signals for LTS:0JKW:

  • Interest Coverage: 37.87 (41% above median its 10-year median of 26.88)
  • GF Value™: €13.85 vs. price of €27.55 (98.9% above fair value)
  • GF Score™: 70/100 with 9 warning signs
  • Industry Position: 368.7% above the Construction median (#358 of 1363)

No single metric tells the full story. See the LTS:0JKW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Merko Ehitus AS Business Description

Other Exchanges MRK1T:EstoniaMKS:Germany
Address Jarvevana tee 9G, Tallinn, EST, 11314
Merko Ehitus AS is a construction company. The company is engaged in the business of general contracting of construction and on providing complete solutions in professional construction and real estate development. The company operates under two reportable segments: construction service and real estate development. Construction service contributes to the majority of the revenue. The Construction service segment includes all projects of the home markets in general construction, civil engineering, electrical construction and concrete works services. The firm operates mainly in Estonia, Lithuania, Latvia, and Norway. Geographically, the company generates the majority of its revenue from Estonia.
70GF Score

Get the complete analysis for LTS:0JKW

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

€27.55
Price
€13.85
GF Value