Redeiaoracion (MEX:REE N) Interest Coverage: 6.57 (As of Mar. 2026) — 11% Below Median


MEX:REE N Redeia Corporacion SA MEX:REE N
68 GF Score
Price MXN326.79
GF Value MXN347.29
! 5 Warning Signs
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What is Redeiaoracion Interest Coverage?

Redeiaoracion MEX:REE N 68 Interest Coverage is 6.57 as of Mar. 2026, which is 11% below its 10-year median of 7.42. GuruFocus rates MEX:REE N with a GF Score™ of 68/100 and a GF Value™ of MXN347.29. The stock has 5 warning signs investors should review. Among 449 Utilities - Regulated companies, Redeiaoracion ranks better than 64.59% 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. Redeiaoracion's Operating Income for the three months ended in Mar. 2026 was MXN4,192 Mil. Redeiaoracion's Interest Expense for the three months ended in Mar. 2026 was MXN-638 Mil. Redeiaoracion's interest coverage for the quarter that ended in Mar. 2026 was 6.57. The higher the ratio, the stronger the company's financial strength is.

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

MEX:REE N' s Interest Coverage Range Over the Past 10 Years
Min: 4.93   Med: 7.42   Max: 8.33
Current: 5.95


MEX:REE N's Interest Coverage is ranked better than
64.59% of 449 companies
in the Utilities - Regulated industry
Industry Median: 3.78 vs MEX:REE N: 5.95

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


Redeiaoracion  (MEX:REE N) 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 .


Redeiaoracion Interest Coverage Related Terms


Redeiaoracion Interest Coverage Historical Data

* Premium members only.

The historical data trend for Redeiaoracion'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.

Redeiaoracion Interest Coverage Chart

Redeiaoracion 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 8.33 7.83 7.52 4.93 5.74

Redeiaoracion Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 5.69 6.28 5.81 5.23 6.57

MEX:REE N vs NEE, SO, DUK: Interest Coverage Comparison

For the Utilities - Regulated Electric subindustry, Redeiaoracion'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.


Redeiaoracion Interest Coverage vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Redeiaoracion's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Redeiaoracion's Interest Coverage falls into.


MEX:REE N
68GF Score
Redeia Corporacion SA MEX:REE N
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Redeiaoracion 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.

Redeiaoracion'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, Redeiaoracion's Interest Expense was MXN-2,758 Mil. Its Operating Income was MXN15,827 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN113,794 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*15827.348/-2757.824
=5.74

Redeiaoracion's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Redeiaoracion's Interest Expense was MXN-638 Mil. Its Operating Income was MXN4,192 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN0 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*4192.342/-637.92
=6.57

* 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 6.57 mean?
Redeiaoracion (MEX:REE N) has a Interest Coverage of 6.57 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Redeiaoracion and its competitors. This is 11% below median its historical median of 7.42. Over the past decade, Redeiaoracion's Interest Coverage has ranged from 4.93 to 8.33. According to the industry distribution chart, Redeiaoracion ranks #159 out of 449 companies in the Utilities - Regulated industry, placing it in the top 35.4%.
Is Redeiaoracion's Interest Coverage too high?
Redeiaoracion's current Interest Coverage of 6.57 is 11% below median its 10-year median of 7.42. Over the past 10 years, this metric has ranged from a low of 4.93 to a high of 8.33. The Utilities - Regulated industry median Interest Coverage is 3.78. Redeiaoracion's value of 6.57 is 73.8% above this industry median. Based on the distribution chart, Redeiaoracion ranks #159 out of 449 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Redeiaoracion has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does Redeiaoracion's Interest Coverage compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Redeiaoracion ranks #159 out of 449 companies for Interest Coverage. This puts Redeiaoracion in the upper half of its industry. The industry median Interest Coverage is 3.78. Redeiaoracion's value of 6.57 is 73.8% above this benchmark. Historically, Redeiaoracion's own Interest Coverage has ranged from 4.93 to 8.33 over the past decade. While the company's 10-year median is 7.42 vs. the industry median of 3.78, Redeiaoracion 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 an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 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. Redeiaoracion's current Interest Coverage of 6.57 is 73.8% 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 Redeiaoracion and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redeiaoracion's current Interest Coverage is 6.57, which is 11% below median its own 10-year median of 7.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redeiaoracion stock overvalued right now?
Redeiaoracion (MEX:REE N) has a current Interest Coverage of 6.57. The stock's GF Value™ is MXN347.29, compared to a current price of MXN326.79 — trading 5.9% below its estimated fair value. The current Interest Coverage is 6.57, which is 11% below median its 10-year median of 7.42 and 73.8% above the Utilities - Regulated industry median of 3.78. Redeiaoracion's overall GF Score™ is 68/100 with 5 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 Redeiaoracion (MEX:REE N), the current Interest Coverage is 6.57 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 Redeiaoracion (MEX:REE N) Overvalued in 2026?

Based on GuruFocus' analysis, Redeiaoracion stock appears to be undervalued. The current stock price of MXN326.79 is trading 5.9% below its estimated GF Value™ of MXN347.29.

Key valuation signals for MEX:REE N:

  • Interest Coverage: 6.57 (11% below median its 10-year median of 7.42)
  • GF Value™: MXN347.29 vs. price of MXN326.79 (5.9% below fair value)
  • GF Score™: 68/100 with 5 warning signs
  • Industry Position: 73.8% above the Utilities - Regulated median (#159 of 449)

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


Redeiaoracion Business Description

Address Paseo del Conde de los Gaitanes, 177, Alcobendas, Madrid, ESP, 28109
Redeia owns and operates the Spanish electric transmission system. The company has acquired almost all of the nation's power grid, which other owners were forced to sell to it by government decree. Its activities are regulated by the National Energy Commission, which answers to the Spanish legislature. Redeia also operates a small fiber optics network in Spain and has a growing Latin American infrastructure business.
68GF Score

Get the complete analysis for MEX:REE N

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

MXN326.79
Price
MXN347.29
GF Value