ShellRYDAF -2.50%70 Interest Coverage is 7.04 as of Mar. 2026, which is 14% above its 10-year median of 6.17. GuruFocus rates RYDAF with a GF Score™ of 70/100 and a GF Value™ of $36.42 (Fairly Valued). The stock has 2 warning signs investors should review. Among 728 Oil & Gas companies, Shell ranks better than 50% 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. Shell's
Operating Income
for the
three
months ended in Mar. 2026 was $10,366 Mil. Shell's Interest Expense for the
three
months ended in Mar. 2026 was $-1,473 Mil.
Shell's interest coverage for the quarter that ended in Mar. 2026 was 7.04.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Shell's Interest Coverage or its related term are showing as below:
RYDAF'
s Interest Coverage Range Over the Past 10 Years
Min: 0.68 Med: 6.17 Max: 11.8
Current: 5.89
RYDAF's Interest Coverage is ranked better than 50% of 728
companies
in the Oil & Gas industry
Industry Median: 5.885
vs RYDAF: 5.89
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 .
Shell Interest Coverage Related Terms
Shell Interest Coverage Historical Data
* Premium members only.
The historical data trend for Shell'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.
For the Oil & Gas Integrated subindustry, Shell'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.
Shell Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Shell's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Shell'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.
Shell (RYDAF) has a Interest Coverage of 7.04 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Shell and its competitors. This is 14% above median its historical median of 6.17. Over the past decade, Shell's Interest Coverage has ranged from 0.68 to 11.80. According to the industry distribution chart, Shell ranks #364 out of 728 companies in the Oil & Gas industry, placing it in the top 50%.
Is Shell's Interest Coverage too high?
Shell's current Interest Coverage of 7.04 is 14% above median its 10-year median of 6.17. Over the past 10 years, this metric has ranged from a low of 0.68 to a high of 11.80. The Oil & Gas industry median Interest Coverage is 5.89. Shell's value of 7.04 is 19.6% above this industry median. Based on the distribution chart, Shell ranks #364 out of 728 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Shell has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shell's Interest Coverage compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, Shell ranks #364 out of 728 companies for Interest Coverage. This puts Shell in the upper half of its industry. The industry median Interest Coverage is 5.89. Shell's value of 7.04 is 19.6% above this benchmark. Historically, Shell's own Interest Coverage has ranged from 0.68 to 11.80 over the past decade. While the company's 10-year median is 6.17 vs. the industry median of 5.89, Shell 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 Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 728 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. Shell's current Interest Coverage of 7.04 is 19.6% 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 Shell and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shell's current Interest Coverage is 7.04, which is 14% above median its own 10-year median of 6.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shell stock overvalued right now?
Based on GuruFocus' analysis, Shell (RYDAF) is currently considered Fairly Valued. The stock's GF Value™ is $36.42, compared to a current price of $38.95 — trading 6.9% above its estimated fair value. The current Interest Coverage is 7.04, which is 14% above median its 10-year median of 6.17 and 19.6% above the Oil & Gas industry median of 5.89. Shell's overall GF Score™ is 70/100 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 Shell (RYDAF), the current Interest Coverage is 7.04 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 Shell (RYDAF) Overvalued in 2026?
Based on GuruFocus' analysis, Shell stock appears to be overvalued.
The current stock price of $38.95 is trading 6.9% above its estimated GF Value™ of $36.42.
GuruFocus considers Shell to be Fairly Valued.
Key valuation signals for RYDAF:
Interest Coverage: 7.04 (14% above median its 10-year median of 6.17)
GF Value™: $36.42 vs. price of $38.95 (6.9% above fair value)
Industry Position: 19.6% above the Oil & Gas median (#364 of 728)
No single metric tells the full story. See the RYDAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shell is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2025, it produced 1.5 million barrels of liquids and 7.3 billion cubic feet of natural gas per day. At year-end 2025, reserves stood at 8.1 billion barrels of oil equivalent, 44% of which consisted of liquids. Its production and reserves are in Europe, Asia, Oceania, Africa, and North and South America. The company operates refineries with a capacity of 1.4 mmb/d located in the Americas, Asia, and Europe, and sells about 9 million tons per year of chemicals. Its largest chemical plants, often integrated with its local refineries, are in Northwestern Europe, China, and North America.
70GF Score
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