Extreme Networks (STU:EXM) Interest Coverage: 5.34 (As of Mar. 2026) — 44% Above Median


STU:EXM Extreme Networks Inc STU:EXM
67 GF Score
Price €27.88
GF Value €16.04
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Extreme Networks Interest Coverage?

Extreme Networks STU:EXM +2.84% 67 Interest Coverage is 5.34 as of Mar. 2026, which is 44% above its 10-year median of 3.71. GuruFocus rates STU:EXM with a GF Score™ of 67/100 and a GF Value™ of €16.04 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,672 Hardware companies, Extreme Networks ranks worse than 83.91% 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. Extreme Networks's Operating Income for the three months ended in Mar. 2026 was €15 Mil. Extreme Networks's Interest Expense for the three months ended in Mar. 2026 was €-3 Mil. Extreme Networks's interest coverage for the quarter that ended in Mar. 2026 was 5.34. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Extreme Networks's Interest Coverage or its related term are showing as below:

STU:EXM' s Interest Coverage Range Over the Past 10 Years
Min: 1.16   Med: 3.71   Max: 6.86
Current: 2.93


STU:EXM's Interest Coverage is ranked worse than
83.91% of 1672 companies
in the Hardware industry
Industry Median: 13.73 vs STU:EXM: 2.93

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Extreme Networks  (STU:EXM) 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 .


Extreme Networks Interest Coverage Related Terms


Extreme Networks Interest Coverage Historical Data

* Premium members only.

The historical data trend for Extreme Networks'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.

Extreme Networks Interest Coverage Chart

Extreme Networks Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.71 5.70 6.42 0.00 1.16

Extreme Networks Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.62 0.00 3.19 3.92 5.34

STU:EXM vs ONDS, BDC, VISN: Interest Coverage Comparison

For the Communication Equipment subindustry, Extreme Networks'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.


Extreme Networks Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, Extreme Networks's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Extreme Networks's Interest Coverage falls into.


STU:EXM
67GF Score
Extreme Networks Inc STU:EXM
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Extreme Networks 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Extreme Networks's Interest Coverage for the fiscal year that ended in Jun. 2025 is calculated as

Here, for the fiscal year that ended in Jun. 2025, Extreme Networks's Interest Expense was €-14 Mil. Its Operating Income was €16 Mil. And its Long-Term Debt & Capital Lease Obligation was €171 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*15.988/-13.81
=1.16

Extreme Networks's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Extreme Networks's Interest Expense was €-3 Mil. Its Operating Income was €15 Mil. And its Long-Term Debt & Capital Lease Obligation was €152 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*14.999/-2.81
=5.34

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 5.34 mean?
Extreme Networks (STU:EXM) has a Interest Coverage of 5.34 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Extreme Networks and its competitors. This is 44% above median its historical median of 3.71. Over the past decade, Extreme Networks' Interest Coverage has ranged from 1.16 to 6.86. According to the industry distribution chart, Extreme Networks ranks #1403 out of 1672 companies in the Hardware industry, placing it in the top 83.9%.
Is Extreme Networks' Interest Coverage too high?
Extreme Networks' current Interest Coverage of 5.34 is 44% above median its 10-year median of 3.71. Over the past 10 years, this metric has ranged from a low of 1.16 to a high of 6.86. The Hardware industry median Interest Coverage is 13.73. Extreme Networks' value of 5.34 is 61.1% below this industry median. Based on the distribution chart, Extreme Networks ranks #1403 out of 1672 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Extreme Networks has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Extreme Networks' Interest Coverage compare to ONDS and BDC?
According to the Hardware industry distribution chart, Extreme Networks ranks #1403 out of 1672 companies for Interest Coverage. This places Extreme Networks in the lower half of its industry. The industry median Interest Coverage is 13.73. Extreme Networks' value of 5.34 is 61.1% below this benchmark. Historically, Extreme Networks' own Interest Coverage has ranged from 1.16 to 6.86 over the past decade. While the company's 10-year median is 3.71 vs. the industry median of 13.73, Extreme Networks 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.73, based on 1,672 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. Extreme Networks's current Interest Coverage of 5.34 is 61.1% 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 Extreme Networks and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Extreme Networks's current Interest Coverage is 5.34, which is 44% above median its own 10-year median of 3.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Extreme Networks stock overvalued right now?
Based on GuruFocus' analysis, Extreme Networks (STU:EXM) is currently considered Significantly Overvalued. The stock's GF Value™ is €16.04, compared to a current price of €27.88 — trading 73.8% above its estimated fair value. The current Interest Coverage is 5.34, which is 44% above median its 10-year median of 3.71 and 61.1% below the Hardware industry median of 13.73. Extreme Networks' overall GF Score™ is 67/100 with 6 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 Extreme Networks (STU:EXM), the current Interest Coverage is 5.34 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 Extreme Networks (STU:EXM) Overvalued in 2026?

Based on GuruFocus' analysis, Extreme Networks stock appears to be overvalued. The current stock price of €27.88 is trading 73.8% above its estimated GF Value™ of €16.04. GuruFocus considers Extreme Networks to be Significantly Overvalued.

Key valuation signals for STU:EXM:

  • Interest Coverage: 5.34 (44% above median its 10-year median of 3.71)
  • GF Value™: €16.04 vs. price of €27.88 (73.8% above fair value)
  • GF Score™: 67/100 with 6 warning signs
  • Industry Position: 61.1% below the Hardware median (#1403 of 1672)

No single metric tells the full story. See the STU:EXM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Extreme Networks Business Description

Other Exchanges EXTR:USA0IJW:UK
Address 2121 RDU Center Drive, Suite 300, Morrisville, NC, USA, 27560
Extreme Networks Inc provides AI-powered cloud networking, focused on delivering simple and secure solutions that help businesses address challenges and enable connections among devices, applications, and users. The group designs, develops, and manufactures wired, wireless, and software-defined wide area network (SD-WAN) infrastructure equipment. It has one reportable segment, the development, marketing, and sale of network infrastructure equipment and related software. The Company operates in three geographical areas: Americas, EMEA, and APAC.
67GF Score

Get the complete analysis for STU:EXM

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€27.88
Price
€16.04
GF Value