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Mercury SystemsMRCY -2.44%62 Interest Coverage is 2.33 as of Jun. 2026, which is 81% below its 10-year median of 12.14. GuruFocus rates MRCY with a GF Score™ of 62/100 and a GF Value™ of $48.16 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 245 Aerospace & Defense companies, Mercury Systems ranks worse than 99.18% 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. Mercury Systems's
Operating Income
for the
three
months ended in Jun. 2026 was $15.2 Mil. Mercury Systems's Interest Expense for the
three
months ended in Jun. 2026 was $-6.5 Mil.
Mercury Systems's interest coverage for the quarter that ended in Jun. 2026 was 2.33.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Mercury Systems's Interest Coverage or its related term are showing as below:
MRCY'
s Interest Coverage Range Over the Past 10 Years
Min: 0.25 Med: 12.14 Max: 94.98
Current: 0.25
MRCY's Interest Coverage is ranked worse than 99.18% of 245
companies
in the Aerospace & Defense industry
Industry Median: 8.98
vs MRCY: 0.25
Mercury Systems (NAS:MRCY) 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 .
Mercury Systems Interest Coverage Related Terms
Mercury Systems Interest Coverage Historical Data
* Premium members only.
The historical data trend for Mercury 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.
MRCY vs KRMN, LOAR, VSEC: Interest Coverage Comparison
For the Aerospace & Defense subindustry, Mercury 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.
Mercury Systems Interest Coverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Mercury Systems's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Mercury 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.
Mercury Systems (MRCY) has a Interest Coverage of 2.33 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Mercury Systems and its competitors. This is 81% below median its historical median of 12.14. Over the past decade, Mercury Systems' Interest Coverage has ranged from 0.25 to 94.98. According to the industry distribution chart, Mercury Systems ranks #243 out of 245 companies in the Aerospace & Defense industry, placing it in the top 99.2%.
Is Mercury Systems' Interest Coverage too high?
Mercury Systems' current Interest Coverage of 2.33 is 81% below median its 10-year median of 12.14. Over the past 10 years, this metric has ranged from a low of 0.25 to a high of 94.98. The Aerospace & Defense industry median Interest Coverage is 8.98. Mercury Systems' value of 2.33 is 74.1% below this industry median. Based on the distribution chart, Mercury Systems ranks #243 out of 245 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Mercury Systems has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mercury Systems' Interest Coverage compare to KRMN and LOAR?
According to the Aerospace & Defense industry distribution chart, Mercury Systems ranks #243 out of 245 companies for Interest Coverage. This places Mercury Systems in the lower half of its industry. The industry median Interest Coverage is 8.98. Mercury Systems' value of 2.33 is 74.1% below this benchmark. Historically, Mercury Systems' own Interest Coverage has ranged from 0.25 to 94.98 over the past decade. While the company's 10-year median is 12.14 vs. the industry median of 8.98, Mercury 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 8.98, based on 245 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. Mercury Systems's current Interest Coverage of 2.33 is 74.1% 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 Mercury Systems and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 8.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercury Systems's current Interest Coverage is 2.33, which is 81% below median its own 10-year median of 12.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercury Systems stock overvalued right now?
Based on GuruFocus' analysis, Mercury Systems (MRCY) is currently considered Significantly Overvalued. The stock's GF Value™ is $48.16, compared to a current price of $98.66 — trading 104.9% above its estimated fair value. The current Interest Coverage is 2.33, which is 81% below median its 10-year median of 12.14 and 74.1% below the Aerospace & Defense industry median of 8.98. Mercury Systems' overall GF Score™ is 62/100 with 4 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 Mercury Systems (MRCY), the current Interest Coverage is 2.33 as of Jun. 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 Mercury Systems (MRCY) Overvalued in 2026?
Based on GuruFocus' analysis, Mercury Systems stock appears to be overvalued.
The current stock price of $98.66 is trading 104.9% above its estimated GF Value™ of $48.16.
GuruFocus considers Mercury Systems to be Significantly Overvalued.
Key valuation signals for MRCY:
Interest Coverage: 2.33 (81% below median its 10-year median of 12.14)
GF Value™: $48.16 vs. price of $98.66 (104.9% above fair value)
Industry Position: 74.1% below the Aerospace & Defense median (#243 of 245)
No single metric tells the full story. See the MRCY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercury Systems Inc is a commercial technology company serving the aerospace and defense industry. The company envisions, creates, and delivers secure open architecture solutions powering a broad range of mission-critical applications in challenging and demanding environments. Its Mercury Processing Platform spans the full breadth of signal processing from radio frequency front end to the human-machine interface to convert meaningful data, gathered in remote and hostile environments, into critical decisions. The company manufactures components, products, modules, and subsystems and sells to defense prime contractors, the U.S. government, original equipment manufacturers, and commercial aerospace companies. Geographically, it derives maximum revenue from the United States.
62GF Score
Get the complete analysis for MRCY
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