MTU Aero Engines AGMTUAF -1.84%86 Interest Coverage is 11.55 as of Dec. 2025, which is 8% above its 10-year median of 10.69. GuruFocus rates MTUAF with a GF Score™ of 86/100 and a GF Value™ of $456.86 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 241 Aerospace & Defense companies, MTU Aero Engines AG ranks better than 57.26% 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. MTU Aero Engines AG's
Operating Income
for the
six
months ended in Dec. 2025 was $785 Mil. MTU Aero Engines AG's Interest Expense for the
six
months ended in Dec. 2025 was $-68 Mil.
MTU Aero Engines AG's interest coverage for the quarter that ended in Dec. 2025 was 11.55.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for MTU Aero Engines AG's Interest Coverage or its related term are showing as below:
MTUAF'
s Interest Coverage Range Over the Past 10 Years
Min: 5.14 Med: 10.69 Max: 17.02
Current: 11.26
MTUAF's Interest Coverage is ranked better than 57.26% of 241
companies
in the Aerospace & Defense industry
Industry Median: 8.69
vs MTUAF: 11.26
MTU Aero Engines AG (OTCPK:MTUAF) 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 .
MTU Aero Engines AG Interest Coverage Related Terms
MTU Aero Engines AG Interest Coverage Historical Data
* Premium members only.
The historical data trend for MTU Aero Engines AG'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.
MTUAF vs SPCX, GE, RTX: Interest Coverage Comparison
For the Aerospace & Defense subindustry, MTU Aero Engines AG'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.
MTU Aero Engines AG Interest Coverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, MTU Aero Engines AG's Interest Coverage distribution charts can be found below:
* The bar in red indicates where MTU Aero Engines AG'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.
MTU Aero Engines AG (MTUAF) has a Interest Coverage of 11.55 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on MTU Aero Engines AG and its competitors. This is near median its historical median of 10.69. Over the past decade, MTU Aero Engines AG's Interest Coverage has ranged from 5.14 to 17.02. According to the industry distribution chart, MTU Aero Engines AG ranks #103 out of 241 companies in the Aerospace & Defense industry, placing it in the top 42.7%.
Is MTU Aero Engines AG's Interest Coverage too high?
MTU Aero Engines AG's current Interest Coverage of 11.55 is near median its 10-year median of 10.69. Over the past 10 years, this metric has ranged from a low of 5.14 to a high of 17.02. The Aerospace & Defense industry median Interest Coverage is 8.69. MTU Aero Engines AG's value of 11.55 is 32.9% above this industry median. Based on the distribution chart, MTU Aero Engines AG ranks #103 out of 241 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, MTU Aero Engines AG has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MTU Aero Engines AG's Interest Coverage compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, MTU Aero Engines AG ranks #103 out of 241 companies for Interest Coverage. This puts MTU Aero Engines AG in the upper half of its industry. The industry median Interest Coverage is 8.69. MTU Aero Engines AG's value of 11.55 is 32.9% above this benchmark. Historically, MTU Aero Engines AG's own Interest Coverage has ranged from 5.14 to 17.02 over the past decade. While the company's 10-year median is 10.69 vs. the industry median of 8.69, MTU Aero Engines AG 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 Aerospace & Defense company?
The median Interest Coverage among Aerospace & Defense companies is 8.69, based on 241 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. MTU Aero Engines AG's current Interest Coverage of 11.55 is 32.9% 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 MTU Aero Engines AG and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 8.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MTU Aero Engines AG's current Interest Coverage is 11.55, which is near median its own 10-year median of 10.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MTU Aero Engines AG stock overvalued right now?
Based on GuruFocus' analysis, MTU Aero Engines AG (MTUAF) is currently considered Modestly Undervalued. The stock's GF Value™ is $456.86, compared to a current price of $402.61 — trading 11.9% below its estimated fair value. The current Interest Coverage is 11.55, which is near median its 10-year median of 10.69 and 32.9% above the Aerospace & Defense industry median of 8.69. MTU Aero Engines AG's overall GF Score™ is 86/100 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 MTU Aero Engines AG (MTUAF), the current Interest Coverage is 11.55 as of Dec. 2025. 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 MTU Aero Engines AG (MTUAF) Overvalued in 2026?
Based on GuruFocus' analysis, MTU Aero Engines AG stock appears to be undervalued.
The current stock price of $402.61 is trading 11.9% below its estimated GF Value™ of $456.86.
GuruFocus considers MTU Aero Engines AG to be Modestly Undervalued.
Key valuation signals for MTUAF:
Interest Coverage: 11.55 (near median its 10-year median of 10.69)
GF Value™: $456.86 vs. price of $402.61 (11.9% below fair value)
Industry Position: 32.9% above the Aerospace & Defense median (#103 of 241)
No single metric tells the full story. See the MTUAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MTU Aero Engines specializes in the development and production of commercial and military aircraft engine components and spare parts. It also performs maintenance, repair, and overhaul services for aircraft engines. More than 30% of commercial aircraft have MTU technology on board. The company is a major assembler of aircraft engines. The commercial and military engine segment develops and manufactures engine components for new engine production and spare parts for the aftermarket. The commercial maintenance business reports MTU's MRO services.
86GF Score
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