Terna SpAMIL:TRN +0.44%84 Interest Coverage is 9.65 as of Mar. 2026, which is 19% below its 10-year median of 11.90. GuruFocus rates MIL:TRN with a GF Score™ of 84/100 and a GF Value™ of €9.85 (Fairly Valued). The stock has 3 warning signs investors should review. Among 449 Utilities - Regulated companies, Terna SpA ranks better than 74.83% 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. Terna SpA's
Operating Income
for the
three
months ended in Mar. 2026 was €450 Mil. Terna SpA's Interest Expense for the
three
months ended in Mar. 2026 was €-47 Mil.
Terna SpA's interest coverage for the quarter that ended in Mar. 2026 was 9.65.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Terna SpA's Interest Coverage or its related term are showing as below:
MIL:TRN'
s Interest Coverage Range Over the Past 10 Years
Min: 6.21 Med: 11.9 Max: 13.93
Current: 9.16
MIL:TRN's Interest Coverage is ranked better than 74.83% of 449
companies
in the Utilities - Regulated industry
Industry Median: 3.78
vs MIL:TRN: 9.16
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 .
Terna SpA Interest Coverage Related Terms
Terna SpA Interest Coverage Historical Data
* Premium members only.
The historical data trend for Terna SpA'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.
MIL:TRN vs NEE, SO, DUK: Interest Coverage Comparison
For the Utilities - Regulated Electric subindustry, Terna SpA'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.
Terna SpA Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Terna SpA's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Terna SpA'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.
Terna SpA (MIL:TRN) has a Interest Coverage of 9.65 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Terna SpA and its competitors. This is 19% below median its historical median of 11.90. Over the past decade, Terna SpA's Interest Coverage has ranged from 6.21 to 13.93. According to the industry distribution chart, Terna SpA ranks #113 out of 449 companies in the Utilities - Regulated industry, placing it in the top 25.2%.
Is Terna SpA's Interest Coverage too high?
Terna SpA's current Interest Coverage of 9.65 is 19% below median its 10-year median of 11.90. Over the past 10 years, this metric has ranged from a low of 6.21 to a high of 13.93. The Utilities - Regulated industry median Interest Coverage is 3.78. Terna SpA's value of 9.65 is 155.3% above this industry median. Based on the distribution chart, Terna SpA ranks #113 out of 449 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Terna SpA has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Terna SpA's Interest Coverage compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Terna SpA ranks #113 out of 449 companies for Interest Coverage. This puts Terna SpA in the upper half of its industry. The industry median Interest Coverage is 3.78. Terna SpA's value of 9.65 is 155.3% above this benchmark. Historically, Terna SpA's own Interest Coverage has ranged from 6.21 to 13.93 over the past decade. While the company's 10-year median is 11.90 vs. the industry median of 3.78, Terna SpA 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. Terna SpA's current Interest Coverage of 9.65 is 155.3% 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 Terna SpA 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. Terna SpA's current Interest Coverage is 9.65, which is 19% below median its own 10-year median of 11.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Terna SpA stock overvalued right now?
Based on GuruFocus' analysis, Terna SpA (MIL:TRN) is currently considered Fairly Valued. The stock's GF Value™ is €9.85, compared to a current price of €10.27 — trading 4.2% above its estimated fair value. The current Interest Coverage is 9.65, which is 19% below median its 10-year median of 11.90 and 155.3% above the Utilities - Regulated industry median of 3.78. Terna SpA's overall GF Score™ is 84/100 with 3 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 Terna SpA (MIL:TRN), the current Interest Coverage is 9.65 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 Terna SpA (MIL:TRN) Overvalued in 2026?
Based on GuruFocus' analysis, Terna SpA stock appears to be overvalued.
The current stock price of €10.27 is trading 4.2% above its estimated GF Value™ of €9.85.
GuruFocus considers Terna SpA to be Fairly Valued.
Key valuation signals for MIL:TRN:
Interest Coverage: 9.65 (19% below median its 10-year median of 11.90)
GF Value™: €9.85 vs. price of €10.27 (4.2% above fair value)
Industry Position: 155.3% above the Utilities - Regulated median (#113 of 449)
No single metric tells the full story. See the MIL:TRN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Terna SpA is an electricity transmission system operator that owns virtually all of the Italian National Transmission Grid. With a monopoly under an Italian government license, Terna transmits and dispatches electricity throughout the country. It is also responsible for the planning, construction, and maintenance of the nation's electrical grid. Terna segments its operations into its Regulated Activities, Non-Regulated Activities, and International Activities. The company generates the vast majority of its revenue from charging transmission fees as a part of its Regulated Activities. Under its Non-Regulated Activities, Terna mainly produces and sells electricity transformers. The company has also made efforts to expand its operations into Italy's neighboring countries and North Africa.
84GF Score
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