Optimum CommunicationsMEX:OPTU 48 Interest Coverage is 0.80 as of Mar. 2026, which is 30% below its 10-year median of 1.14. GuruFocus rates MEX:OPTU with a GF Score™ of 48/100 and a GF Value™ of MXN65.36. The stock has 8 warning signs investors should review. Among 284 Telecommunication Services companies, Optimum Communications ranks worse than 89.79% 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. Optimum Communications's
Operating Income
for the
three
months ended in Mar. 2026 was MXN6,628 Mil. Optimum Communications's Interest Expense for the
three
months ended in Mar. 2026 was MXN-8,256 Mil.
Optimum Communications's interest coverage for the quarter that ended in Mar. 2026 was 0.80.
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. Optimum Communications Incs 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 Optimum Communications's Interest Coverage or its related term are showing as below:
MEX:OPTU'
s Interest Coverage Range Over the Past 10 Years
Min: 0.48 Med: 1.14 Max: 2.01
Current: 0.87
MEX:OPTU's Interest Coverage is ranked worse than 89.79% of 284
companies
in the Telecommunication Services industry
Industry Median: 4.685
vs MEX:OPTU: 0.87
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 .
Optimum Communications Interest Coverage Related Terms
Optimum Communications Interest Coverage Historical Data
* Premium members only.
The historical data trend for Optimum Communications'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:OPTU vs CCOI, GLIBA, SHEN: Interest Coverage Comparison
For the Telecom Services subindustry, Optimum Communications'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.
Optimum Communications Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Optimum Communications's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Optimum Communications'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.
Optimum Communications (MEX:OPTU) has a Interest Coverage of 0.80 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Optimum Communications and its competitors. This is 30% below median its historical median of 1.14. Over the past decade, Optimum Communications' Interest Coverage has ranged from 0.48 to 2.01. According to the industry distribution chart, Optimum Communications ranks #255 out of 284 companies in the Telecommunication Services industry, placing it in the top 89.8%.
Is Optimum Communications' Interest Coverage too high?
Optimum Communications' current Interest Coverage of 0.80 is 30% below median its 10-year median of 1.14. Over the past 10 years, this metric has ranged from a low of 0.48 to a high of 2.01. The Telecommunication Services industry median Interest Coverage is 4.69. Optimum Communications' value of 0.80 is 82.9% below this industry median. Based on the distribution chart, Optimum Communications ranks #255 out of 284 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Optimum Communications has a GF Score™ of 48/100, reflecting its overall financial health beyond just this single metric.
How does Optimum Communications' Interest Coverage compare to CCOI and GLIBA?
According to the Telecommunication Services industry distribution chart, Optimum Communications ranks #255 out of 284 companies for Interest Coverage. This places Optimum Communications in the lower half of its industry. The industry median Interest Coverage is 4.69. Optimum Communications' value of 0.80 is 82.9% below this benchmark. Historically, Optimum Communications' own Interest Coverage has ranged from 0.48 to 2.01 over the past decade. While the company's 10-year median is 1.14 vs. the industry median of 4.69, Optimum Communications 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 Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.69, based on 284 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. Optimum Communications's current Interest Coverage of 0.80 is 82.9% 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 Optimum Communications and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Optimum Communications's current Interest Coverage is 0.80, which is 30% below median its own 10-year median of 1.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Optimum Communications stock overvalued right now?
Optimum Communications (MEX:OPTU) has a current Interest Coverage of 0.80. The stock's GF Value™ is MXN65.36, compared to a current price of MXN50.00 — trading 23.5% below its estimated fair value. The current Interest Coverage is 0.80, which is 30% below median its 10-year median of 1.14 and 82.9% below the Telecommunication Services industry median of 4.69. Optimum Communications' overall GF Score™ is 48/100 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 Optimum Communications (MEX:OPTU), the current Interest Coverage is 0.80 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 Optimum Communications (MEX:OPTU) Overvalued in 2026?
Based on GuruFocus' analysis, Optimum Communications stock appears to be undervalued.
The current stock price of MXN50.00 is trading 23.5% below its estimated GF Value™ of MXN65.36.
Key valuation signals for MEX:OPTU:
Interest Coverage: 0.80 (30% below median its 10-year median of 1.14)
GF Value™: MXN65.36 vs. price of MXN50.00 (23.5% below fair value)
Industry Position: 82.9% below the Telecommunication Services median (#255 of 284)
No single metric tells the full story. See the MEX:OPTU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Optimum's assets were brought together when Altice Europe acquired US cable companies Suddenlink in 2015 and Cablevision in 2016. The Suddenlink business, which management calls the "West," provides television, internet access, and phone services to roughly 4.5 million US homes and businesses located primarily in smaller markets, with major clusters in Texas, West Virginia, Idaho, Arizona, and Louisiana. The Cablevision portion, dubbed the "East," provides comparable services to about 5.5 million homes and businesses in the New York City metro area. Both regions now operate under the Optimum brand name. Altice Europe spun off Optimum, which includes both the Suddenlink and Cablevision operations, to shareholders in 2018.
48GF Score
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