BAE SystemsMEX:BA1N 79 Interest Coverage is 6.10 as of Dec. 2025, which is 19% above its 10-year median of 5.14. GuruFocus rates MEX:BA1N with a GF Score™ of 79/100 and a GF Value™ of MXN408.41 (Fairly Valued). The stock has 2 warning signs investors should review. Among 241 Aerospace & Defense companies, BAE Systems ranks worse than 67.22% 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. BAE Systems's
Operating Income
for the
six
months ended in Dec. 2025 was MXN35,288 Mil. BAE Systems's Interest Expense for the
six
months ended in Dec. 2025 was MXN-5,785 Mil.
BAE Systems's interest coverage for the quarter that ended in Dec. 2025 was 6.10.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for BAE Systems's Interest Coverage or its related term are showing as below:
MEX:BA1N'
s Interest Coverage Range Over the Past 10 Years
Min: 4.23 Med: 5.14 Max: 6.9
Current: 5.32
MEX:BA1N's Interest Coverage is ranked worse than 67.22% of 241
companies
in the Aerospace & Defense industry
Industry Median: 8.69
vs MEX:BA1N: 5.32
BAE Systems (MEX:BA1N) 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 .
BAE Systems Interest Coverage Related Terms
BAE Systems Interest Coverage Historical Data
* Premium members only.
The historical data trend for BAE Systems'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.
MEX:BA1N vs GE, RTX, BA: Interest Coverage Comparison
For the Aerospace & Defense subindustry, BAE Systems'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.
BAE Systems Interest Coverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's Interest Coverage distribution charts can be found below:
* The bar in red indicates where BAE Systems'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.
BAE Systems (MEX:BA1N) has a Interest Coverage of 6.10 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on BAE Systems and its competitors. This is 19% above median its historical median of 5.14. Over the past decade, BAE Systems' Interest Coverage has ranged from 4.23 to 6.90. According to the industry distribution chart, BAE Systems ranks #162 out of 241 companies in the Aerospace & Defense industry, placing it in the top 67.2%.
Is BAE Systems' Interest Coverage too high?
BAE Systems' current Interest Coverage of 6.10 is 19% above median its 10-year median of 5.14. Over the past 10 years, this metric has ranged from a low of 4.23 to a high of 6.90. The Aerospace & Defense industry median Interest Coverage is 8.69. BAE Systems' value of 6.10 is 29.8% below this industry median. Based on the distribution chart, BAE Systems ranks #162 out of 241 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, BAE Systems has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' Interest Coverage compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, BAE Systems ranks #162 out of 241 companies for Interest Coverage. This places BAE Systems in the lower half of its industry. The industry median Interest Coverage is 8.69. BAE Systems' value of 6.10 is 29.8% below this benchmark. Historically, BAE Systems' own Interest Coverage has ranged from 4.23 to 6.90 over the past decade. While the company's 10-year median is 5.14 vs. the industry median of 8.69, BAE Systems 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 Aerospace & Defense company?
The median Interest Coverage among Aerospace & Defense companies is 8.69, based on 241 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. BAE Systems's current Interest Coverage of 6.10 is 29.8% 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 BAE Systems and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 8.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current Interest Coverage is 6.10, which is 19% above median its own 10-year median of 5.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BAE Systems stock overvalued right now?
Based on GuruFocus' analysis, BAE Systems (MEX:BA1N) is currently considered Fairly Valued. The stock's GF Value™ is MXN408.41, compared to a current price of MXN443.66 — trading 8.6% above its estimated fair value. The current Interest Coverage is 6.10, which is 19% above median its 10-year median of 5.14 and 29.8% below the Aerospace & Defense industry median of 8.69. BAE Systems' overall GF Score™ is 79/100 with 2 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 BAE Systems (MEX:BA1N), the current Interest Coverage is 6.10 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 BAE Systems (MEX:BA1N) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of MXN443.66 is trading 8.6% above its estimated GF Value™ of MXN408.41.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for MEX:BA1N:
Interest Coverage: 6.10 (19% above median its 10-year median of 5.14)
GF Value™: MXN408.41 vs. price of MXN443.66 (8.6% above fair value)
Industry Position: 29.8% below the Aerospace & Defense median (#162 of 241)
No single metric tells the full story. See the MEX:BA1N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the US Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's US- and UK-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the US government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the US Defense Department; the air segment includes BAE's share of US and European air programs as well as its businesses in Saudi Arabia and Australia, and the maritime segment comprises UK land- and marine-based activities.
79GF Score
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