STMicroelectronics NVSTMEF +2.17%72 Interest Coverage is 7.38 as of Mar. 2026, which is 69% below its 10-year median of 24.08. GuruFocus rates STMEF with a GF Score™ of 72/100 and a GF Value™ of $30.07 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 638 Semiconductors companies, STMicroelectronics NV ranks worse than 65.67% 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. STMicroelectronics NV's
Operating Income
for the
three
months ended in Mar. 2026 was $96 Mil. STMicroelectronics NV's Interest Expense for the
three
months ended in Mar. 2026 was $-13 Mil.
STMicroelectronics NV's interest coverage for the quarter that ended in Mar. 2026 was 7.38.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for STMicroelectronics NV's Interest Coverage or its related term are showing as below:
STMEF'
s Interest Coverage Range Over the Past 10 Years
Min: 5.87 Med: 24.08 Max: 329.23
Current: 9.48
STMEF's Interest Coverage is ranked worse than 65.67% of 638
companies
in the Semiconductors industry
Industry Median: 20.225
vs STMEF: 9.48
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 .
STMicroelectronics NV Interest Coverage Related Terms
STMicroelectronics NV Interest Coverage Historical Data
* Premium members only.
The historical data trend for STMicroelectronics NV'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.
STMEF vs NVDA, AVGO, MU: Interest Coverage Comparison
For the Semiconductors subindustry, STMicroelectronics NV'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.
STMicroelectronics NV Interest Coverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, STMicroelectronics NV's Interest Coverage distribution charts can be found below:
* The bar in red indicates where STMicroelectronics NV'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.
STMicroelectronics NV (STMEF) has a Interest Coverage of 7.38 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on STMicroelectronics NV and its competitors. This is 69% below median its historical median of 24.08. Over the past decade, STMicroelectronics NV's Interest Coverage has ranged from 5.87 to 329.23. According to the industry distribution chart, STMicroelectronics NV ranks #419 out of 638 companies in the Semiconductors industry, placing it in the top 65.7%.
Is STMicroelectronics NV's Interest Coverage too high?
STMicroelectronics NV's current Interest Coverage of 7.38 is 69% below median its 10-year median of 24.08. Over the past 10 years, this metric has ranged from a low of 5.87 to a high of 329.23. The Semiconductors industry median Interest Coverage is 20.23. STMicroelectronics NV's value of 7.38 is 63.5% below this industry median. Based on the distribution chart, STMicroelectronics NV ranks #419 out of 638 companies in the Semiconductors industry, which is below the industry midpoint. Overall, STMicroelectronics NV has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does STMicroelectronics NV's Interest Coverage compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, STMicroelectronics NV ranks #419 out of 638 companies for Interest Coverage. This places STMicroelectronics NV in the lower half of its industry. The industry median Interest Coverage is 20.23. STMicroelectronics NV's value of 7.38 is 63.5% below this benchmark. Historically, STMicroelectronics NV's own Interest Coverage has ranged from 5.87 to 329.23 over the past decade. While the company's 10-year median is 24.08 vs. the industry median of 20.23, STMicroelectronics NV 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 Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.23, based on 638 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. STMicroelectronics NV's current Interest Coverage of 7.38 is 63.5% 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 STMicroelectronics NV and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. STMicroelectronics NV's current Interest Coverage is 7.38, which is 69% below median its own 10-year median of 24.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is STMicroelectronics NV stock overvalued right now?
Based on GuruFocus' analysis, STMicroelectronics NV (STMEF) is currently considered Significantly Overvalued. The stock's GF Value™ is $30.07, compared to a current price of $73.66 — trading 145% above its estimated fair value. The current Interest Coverage is 7.38, which is 69% below median its 10-year median of 24.08 and 63.5% below the Semiconductors industry median of 20.23. STMicroelectronics NV's overall GF Score™ is 72/100 with 10 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 STMicroelectronics NV (STMEF), the current Interest Coverage is 7.38 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 STMicroelectronics NV (STMEF) Overvalued in 2026?
Based on GuruFocus' analysis, STMicroelectronics NV stock appears to be overvalued.
The current stock price of $73.66 is trading 145% above its estimated GF Value™ of $30.07.
GuruFocus considers STMicroelectronics NV to be Significantly Overvalued.
Key valuation signals for STMEF:
Interest Coverage: 7.38 (69% below median its 10-year median of 24.08)
GF Value™: $30.07 vs. price of $73.66 (145% above fair value)
Industry Position: 63.5% below the Semiconductors median (#419 of 638)
No single metric tells the full story. See the STMEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
A merger between Italian firm SGS Microelettronica and the nonmilitary business of Thomson Semiconducteurs in France formed STMicroelectronics in 1987. STMicroelectronics is a leader in a variety of semiconductor products, including analog chips, discrete power semiconductors, microcontrollers, and sensors. It is an especially prominent chip supplier to the industrial and automotive industries.
72GF Score
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