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. Singapore Technologies Engineering's
Operating Income
for the
six
months ended in Dec. 2025 was $-76 Mil. Singapore Technologies Engineering's Interest Expense for the
six
months ended in Dec. 2025 was $-78 Mil.
did not have earnings to cover the interest expense.
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. Singapore Technologies Engineering Ltd interest coverage is 2.34, which is low.
The historical rank and industry rank for Singapore Technologies Engineering's Interest Coverage or its related term are showing as below:
SGGKY'
s Interest Coverage Range Over the Past 10 Years
Min: 2.11 Med: 11.64 Max: 15.04
Current: 2.34
SGGKY's Interest Coverage is ranked worse than 85.89% of 241
companies
in the Aerospace & Defense industry
Industry Median: 8.69
vs SGGKY: 2.34
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 .
Singapore Technologies Engineering Interest Coverage Related Terms
Singapore Technologies Engineering 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.
SGGKY vs GE, RTX, BA: Interest Coverage Comparison
For the Aerospace & Defense subindustry, Singapore Technologies Engineering'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.
Singapore Technologies Engineering Interest Coverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Singapore Technologies Engineering's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Singapore Technologies Engineering'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:
Singapore Technologies Engineering did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Singapore Technologies Engineering (SGGKY) has a Interest Coverage of 0 (At Loss) as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Singapore Technologies Engineering and its competitors. Over the past decade, Singapore Technologies Engineering's Interest Coverage has ranged from 2.11 to 15.04. According to the industry distribution chart, Singapore Technologies Engineering ranks #207 out of 241 companies in the Aerospace & Defense industry, placing it in the top 85.9%.
Is Singapore Technologies Engineering's Interest Coverage too high?
Singapore Technologies Engineering's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 2.11 to a high of 15.04. Based on the distribution chart, Singapore Technologies Engineering ranks #207 out of 241 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Singapore Technologies Engineering has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Singapore Technologies Engineering's Interest Coverage compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Singapore Technologies Engineering ranks #207 out of 241 companies for Interest Coverage. This places Singapore Technologies Engineering in the lower half of its industry. The industry median Interest Coverage is 8.69. Historically, Singapore Technologies Engineering's own Interest Coverage has ranged from 2.11 to 15.04 over the past decade. 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. 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 Singapore Technologies Engineering 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. Singapore Technologies Engineering's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Singapore Technologies Engineering stock overvalued right now?
Based on GuruFocus' analysis, Singapore Technologies Engineering (SGGKY) is currently considered Significantly Overvalued. The stock's GF Value™ is $44.66, compared to a current price of $85.00 — trading 90.3% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Singapore Technologies Engineering's overall GF Score™ is 69/100 with 11 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 Singapore Technologies Engineering (SGGKY), the current Interest Coverage is 0 (At Loss) 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 Singapore Technologies Engineering (SGGKY) Overvalued in 2026?
Based on GuruFocus' analysis, Singapore Technologies Engineering stock appears to be overvalued.
The current stock price of $85.00 is trading 90.3% above its estimated GF Value™ of $44.66.
GuruFocus considers Singapore Technologies Engineering to be Significantly Overvalued.
Key valuation signals for SGGKY:
Interest Coverage: 0 (At Loss)
GF Value™: $44.66 vs. price of $85.00 (90.3% above fair value)
No single metric tells the full story. See the SGGKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Singapore Technologies Engineering Business Description
ST Engineering is a Singaporean government-linked commercial and defense engineering group. Its key businesses include aircraft maintenance, repair and overhaul services, in which it is the world's largest independent third-party provider. The company's fastest-growing activities involve applications to defense and smart city solutions where it provides tolling solutions, traffic control systems, command and control dashboards, cybersecurity tools, and other related components. Around two thirds of the company's revenue comes from commercial clients while the remainder is defense.
69GF Score
Get the complete analysis for SGGKY
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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