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. Babcock International Group's
Operating Income
for the
six
months ended in Mar. 2026 was MXN1,702 Mil. Babcock International Group's Interest Expense for the
six
months ended in Mar. 2026 was MXN-647 Mil.
Babcock International Group's interest coverage for the quarter that ended in Mar. 2026 was 2.63.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Babcock International Group's Interest Coverage or its related term are showing as below:
MEX:BABBN'
s Interest Coverage Range Over the Past 10 Years
Min: 0.78 Med: 5.45 Max: 7.35
Current: 6.15
MEX:BABBN's Interest Coverage is ranked worse than 55.83% of 1354
companies
in the Construction industry
Industry Median: 7.865
vs MEX:BABBN: 6.15
Babcock International Group (MEX:BABBN) 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 .
Babcock International Group Interest Coverage Related Terms
Babcock International Group Interest Coverage Historical Data
* 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.
Babcock International Group Interest Coverage Chart
MEX:BABBN vs PWR, FIX, EME: Interest Coverage Comparison
For the Engineering & Construction subindustry, Babcock International Group'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.
Babcock International Group Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, Babcock International Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Babcock International Group's Interest Coverage falls into.
Babcock International Group 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:
* 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.
Babcock International Group (MEX:BABBN) has a Interest Coverage of 2.63 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Babcock International Group and its competitors. This is 52% below median its historical median of 5.45. Over the past decade, Babcock International Group's Interest Coverage has ranged from 0.78 to 7.35. According to the industry distribution chart, Babcock International Group ranks #756 out of 1354 companies in the Construction industry, placing it in the top 55.8%.
Is Babcock International Group's Interest Coverage too high?
Babcock International Group's current Interest Coverage of 2.63 is 52% below median its 10-year median of 5.45. Over the past 10 years, this metric has ranged from a low of 0.78 to a high of 7.35. The Construction industry median Interest Coverage is 7.87. Babcock International Group's value of 2.63 is 66.6% below this industry median. Based on the distribution chart, Babcock International Group ranks #756 out of 1354 companies in the Construction industry, which is below the industry midpoint. Overall, Babcock International Group has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Babcock International Group's Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, Babcock International Group ranks #756 out of 1354 companies for Interest Coverage. This places Babcock International Group in the lower half of its industry. The industry median Interest Coverage is 7.87. Babcock International Group's value of 2.63 is 66.6% below this benchmark. Historically, Babcock International Group's own Interest Coverage has ranged from 0.78 to 7.35 over the past decade. While the company's 10-year median is 5.45 vs. the industry median of 7.87, Babcock International Group 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 Construction company?
The median Interest Coverage among Construction companies is 7.87, based on 1,354 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. Babcock International Group's current Interest Coverage of 2.63 is 66.6% 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 Babcock International Group and its competitors. For the Construction industry, the median Interest Coverage is 7.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Babcock International Group's current Interest Coverage is 2.63, which is 52% below median its own 10-year median of 5.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Babcock International Group stock overvalued right now?
Babcock International Group (MEX:BABBN) has a current Interest Coverage of 2.63. The stock's GF Value™ is MXN52.85, compared to a current price of MXN82.68 — trading 56.4% above its estimated fair value. The current Interest Coverage is 2.63, which is 52% below median its 10-year median of 5.45 and 66.6% below the Construction industry median of 7.87. Babcock International Group's overall GF Score™ is 67/100 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 Babcock International Group (MEX:BABBN), the current Interest Coverage is 2.63 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 Babcock International Group (MEX:BABBN) Overvalued in 2026?
Based on GuruFocus' analysis, Babcock International Group stock appears to be overvalued.
The current stock price of MXN82.68 is trading 56.4% above its estimated GF Value™ of MXN52.85.
Key valuation signals for MEX:BABBN:
Interest Coverage: 2.63 (52% below median its 10-year median of 5.45)
GF Value™: MXN52.85 vs. price of MXN82.68 (56.4% above fair value)
Industry Position: 66.6% below the Construction median (#756 of 1354)
No single metric tells the full story. See the MEX:BABBN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Babcock International Group PLC is a British engineering company specializing in the construction and decommissioning of nuclear power plants and submarines; maintenance support; fleet management for aviation, marine, and land; and provision of technical training and emergency services. The company's operating segments include Marine, Land, Aviation, and Nuclear. It generates maximum revenue from the Nuclear segment, which is engaged in providing engineering support to the United Kingdom's nuclear submarine fleet, decommissioning nuclear facilities, supporting nuclear generation, and new build projects. Geographically, it derives a majority of its revenue from the United Kingdom and also has a presence in the Rest of Europe, Africa, North America, Australasia, and the Rest of the World.
67GF Score
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