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. Science Applications International's
Operating Income
for the
three
months ended in Apr. 2026 was $179 Mil. Science Applications International's Interest Expense for the
three
months ended in Apr. 2026 was $-33 Mil.
Science Applications International's interest coverage for the quarter that ended in Apr. 2026 was 5.42.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Science Applications International's Interest Coverage or its related term are showing as below:
SAIC'
s Interest Coverage Range Over the Past 10 Years
Min: 3.64 Med: 4.56 Max: 5.82
Current: 4.42
SAIC's Interest Coverage is ranked worse than 79.59% of 1705
companies
in the Software industry
Industry Median: 24.67
vs SAIC: 4.42
Science Applications International (NAS:SAIC) 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 .
Science Applications International Interest Coverage Related Terms
Science Applications International Interest Coverage Historical Data
* 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.
Science Applications International Interest Coverage Chart
SAIC vs EXLS, PONY, EPAM: Interest Coverage Comparison
For the Information Technology Services subindustry, Science Applications International'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.
Science Applications International Interest Coverage vs Software Industry
For the Software industry and Technology sector, Science Applications International's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Science Applications International's Interest Coverage falls into.
Science Applications International Interest Coverage Calculation
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.
Science Applications International (SAIC) has a Interest Coverage of 5.42 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Science Applications International and its competitors. This is 19% above median its historical median of 4.56. Over the past decade, Science Applications International's Interest Coverage has ranged from 3.64 to 5.82. According to the industry distribution chart, Science Applications International ranks #1357 out of 1705 companies in the Software industry, placing it in the top 79.6%.
Is Science Applications International's Interest Coverage too high?
Science Applications International's current Interest Coverage of 5.42 is 19% above median its 10-year median of 4.56. Over the past 10 years, this metric has ranged from a low of 3.64 to a high of 5.82. The Software industry median Interest Coverage is 24.67. Science Applications International's value of 5.42 is 78% below this industry median. Based on the distribution chart, Science Applications International ranks #1357 out of 1705 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Science Applications International has a GF Scoreâ„¢ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Science Applications International's Interest Coverage compare to EXLS and PONY?
According to the Software industry distribution chart, Science Applications International ranks #1357 out of 1705 companies for Interest Coverage. This places Science Applications International in the lower half of its industry. The industry median Interest Coverage is 24.67. Science Applications International's value of 5.42 is 78% below this benchmark. Historically, Science Applications International's own Interest Coverage has ranged from 3.64 to 5.82 over the past decade. While the company's 10-year median is 4.56 vs. the industry median of 24.67, Science Applications International 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 a Software company?
The median Interest Coverage among Software companies is 24.67, based on 1,705 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. Science Applications International's current Interest Coverage of 5.42 is 78% 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 Science Applications International and its competitors. For the Software industry, the median Interest Coverage is 24.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Science Applications International's current Interest Coverage is 5.42, which is 19% above median its own 10-year median of 4.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Science Applications International stock overvalued right now?
Based on GuruFocus' analysis, Science Applications International (SAIC) is currently considered Modestly Undervalued. The stock's GF Value™ is $126.94, compared to a current price of $108.47 — trading 14.6% below its estimated fair value. The current Interest Coverage is 5.42, which is 19% above median its 10-year median of 4.56 and 78% below the Software industry median of 24.67. Science Applications International's overall GF Score™ is 79/100 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 Science Applications International (SAIC), the current Interest Coverage is 5.42 as of Apr. 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 Science Applications International (SAIC) Overvalued in 2026?
Based on GuruFocus' analysis, Science Applications International stock appears to be undervalued.
The current stock price of $108.47 is trading 14.6% below its estimated GF Value™ of $126.94.
GuruFocus considers Science Applications International to be Modestly Undervalued.
Key valuation signals for SAIC:
Interest Coverage: 5.42 (19% above median its 10-year median of 4.56)
GF Value™: $126.94 vs. price of $108.47 (14.6% below fair value)
Industry Position: 78% below the Software median (#1357 of 1705)
No single metric tells the full story. See the SAIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Science Applications International Business Description
Science Applications International Corp provides technical, engineering, and enterprise IT services mainly to the U.S. government. Specifically, it offers end-to-end solutions spanning the design, development, integration, deployment, management, operations, sustainment, and security of the customer's entire IT infrastructure. The company has two reportable segments, which include Defense and Intelligence and the Civilian segment. Maximum revenue is generated from its Defense and Intelligence segment, which provides a diverse portfolio of national security solutions to the DoW and the Intelligence Community of the United States Government. The Civilian segment provides solutions to the civilian markets, encompassing federal, state, and local governments.
79GF Score
Get the complete analysis for SAIC
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