Pennon GroupPEGRF +4.51%77 Interest Coverage is 1.68 as of Mar. 2026, which is 43% below its 10-year median of 2.97. GuruFocus rates PEGRF with a GF Score™ of 77/100 and a GF Value™ of $6.24 (Fairly Valued). The stock has 9 warning signs investors should review. Among 449 Utilities - Regulated companies, Pennon Group ranks worse than 86.19% 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. Pennon Group's
Operating Income
for the
six
months ended in Mar. 2026 was $237 Mil. Pennon Group's Interest Expense for the
six
months ended in Mar. 2026 was $-142 Mil.
Pennon Group's interest coverage for the quarter that ended in Mar. 2026 was 1.68.
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. Pennon Group PLC interest coverage is 1.68, which is low.
The historical rank and industry rank for Pennon Group's Interest Coverage or its related term are showing as below:
PEGRF'
s Interest Coverage Range Over the Past 10 Years
Min: 0.78 Med: 2.97 Max: 4.2
Current: 1.68
PEGRF's Interest Coverage is ranked worse than 86.19% of 449
companies
in the Utilities - Regulated industry
Industry Median: 3.78
vs PEGRF: 1.68
Pennon Group (OTCPK:PEGRF) 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 .
Pennon Group Interest Coverage Related Terms
Pennon Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Pennon Group'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.
PEGRF vs AWK, WTRG, AWR: Interest Coverage Comparison
For the Utilities - Regulated Water subindustry, Pennon Group'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.
Pennon Group Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pennon Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Pennon Group'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.
Pennon Group (PEGRF) has a Interest Coverage of 1.68 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Pennon Group and its competitors. This is 43% below median its historical median of 2.97. Over the past decade, Pennon Group's Interest Coverage has ranged from 0.78 to 4.20. According to the industry distribution chart, Pennon Group ranks #387 out of 449 companies in the Utilities - Regulated industry, placing it in the top 86.2%.
Is Pennon Group's Interest Coverage too high?
Pennon Group's current Interest Coverage of 1.68 is 43% below median its 10-year median of 2.97. Over the past 10 years, this metric has ranged from a low of 0.78 to a high of 4.20. The Utilities - Regulated industry median Interest Coverage is 3.78. Pennon Group's value of 1.68 is 55.6% below this industry median. Based on the distribution chart, Pennon Group ranks #387 out of 449 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, Pennon Group has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pennon Group's Interest Coverage compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Pennon Group ranks #387 out of 449 companies for Interest Coverage. This places Pennon Group in the lower half of its industry. The industry median Interest Coverage is 3.78. Pennon Group's value of 1.68 is 55.6% below this benchmark. Historically, Pennon Group's own Interest Coverage has ranged from 0.78 to 4.20 over the past decade. While the company's 10-year median is 2.97 vs. the industry median of 3.78, Pennon Group 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 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. Pennon Group's current Interest Coverage of 1.68 is 55.6% 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 Pennon Group 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. Pennon Group's current Interest Coverage is 1.68, which is 43% below median its own 10-year median of 2.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pennon Group stock overvalued right now?
Based on GuruFocus' analysis, Pennon Group (PEGRF) is currently considered Fairly Valued. The stock's GF Value™ is $6.24, compared to a current price of $6.38 — trading 2.2% above its estimated fair value. The current Interest Coverage is 1.68, which is 43% below median its 10-year median of 2.97 and 55.6% below the Utilities - Regulated industry median of 3.78. Pennon Group's overall GF Score™ is 77/100 with 9 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 Pennon Group (PEGRF), the current Interest Coverage is 1.68 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 Pennon Group (PEGRF) Overvalued in 2026?
Based on GuruFocus' analysis, Pennon Group stock appears to be overvalued.
The current stock price of $6.38 is trading 2.2% above its estimated GF Value™ of $6.24.
GuruFocus considers Pennon Group to be Fairly Valued.
Key valuation signals for PEGRF:
Interest Coverage: 1.68 (43% below median its 10-year median of 2.97)
GF Value™: $6.24 vs. price of $6.38 (2.2% above fair value)
Industry Position: 55.6% below the Utilities - Regulated median (#387 of 449)
No single metric tells the full story. See the PEGRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pennon Group PLC is a British water and environmental utility infrastructure company that operates mainly in the United Kingdom. It has smaller operations in the European Union, China, and other countries. The company operates through Water, Non-household retail, and other segments. The water business comprises the regulated water and wastewater services undertaken by South West Water. The non-household retail business comprises the services provided by Pennon Water Services in the non-household water and wastewater retail market. The majority of revenue is derived from the water division.
77GF Score
Get the complete analysis for PEGRF
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