ThalesTHLLY -1.96%90 Interest Coverage is 5.18 as of Dec. 2025, which is 60% below its 10-year median of 13.02. GuruFocus rates THLLY with a GF Score™ of 90/100 and a GF Value™ of $42.40 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 241 Aerospace & Defense companies, Thales ranks worse than 52.7% 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. Thales's
Operating Income
for the
six
months ended in Dec. 2025 was $1,483 Mil. Thales's Interest Expense for the
six
months ended in Dec. 2025 was $-286 Mil.
Thales's interest coverage for the quarter that ended in Dec. 2025 was 5.18.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Thales's Interest Coverage or its related term are showing as below:
THLLY'
s Interest Coverage Range Over the Past 10 Years
Min: 5.39 Med: 13.02 Max: 19.69
Current: 7.71
THLLY's Interest Coverage is ranked worse than 52.7% of 241
companies
in the Aerospace & Defense industry
Industry Median: 8.69
vs THLLY: 7.71
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 .
Thales Interest Coverage Related Terms
Thales Interest Coverage Historical Data
* Premium members only.
The historical data trend for Thales'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.
THLLY vs GE, RTX, BA: Interest Coverage Comparison
For the Aerospace & Defense subindustry, Thales'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.
Thales Interest Coverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Thales's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Thales'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.
Thales (THLLY) has a Interest Coverage of 5.18 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Thales and its competitors. This is 60% below median its historical median of 13.02. Over the past decade, Thales' Interest Coverage has ranged from 5.39 to 19.69. According to the industry distribution chart, Thales ranks #127 out of 241 companies in the Aerospace & Defense industry, placing it in the top 52.7%.
Is Thales' Interest Coverage too high?
Thales' current Interest Coverage of 5.18 is 60% below median its 10-year median of 13.02. Over the past 10 years, this metric has ranged from a low of 5.39 to a high of 19.69. The Aerospace & Defense industry median Interest Coverage is 8.69. Thales' value of 5.18 is 40.4% below this industry median. Based on the distribution chart, Thales ranks #127 out of 241 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Thales has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Thales' Interest Coverage compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Thales ranks #127 out of 241 companies for Interest Coverage. This places Thales in the lower half of its industry. The industry median Interest Coverage is 8.69. Thales' value of 5.18 is 40.4% below this benchmark. Historically, Thales' own Interest Coverage has ranged from 5.39 to 19.69 over the past decade. While the company's 10-year median is 13.02 vs. the industry median of 8.69, Thales 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 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. Thales's current Interest Coverage of 5.18 is 40.4% 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 Thales 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. Thales's current Interest Coverage is 5.18, which is 60% below median its own 10-year median of 13.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Thales stock overvalued right now?
Based on GuruFocus' analysis, Thales (THLLY) is currently considered Modestly Overvalued. The stock's GF Value™ is $42.40, compared to a current price of $50.92 — trading 20.1% above its estimated fair value. The current Interest Coverage is 5.18, which is 60% below median its 10-year median of 13.02 and 40.4% below the Aerospace & Defense industry median of 8.69. Thales' overall GF Score™ is 90/100 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 Thales (THLLY), the current Interest Coverage is 5.18 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 Thales (THLLY) Overvalued in 2026?
Based on GuruFocus' analysis, Thales stock appears to be overvalued.
The current stock price of $50.92 is trading 20.1% above its estimated GF Value™ of $42.40.
GuruFocus considers Thales to be Modestly Overvalued.
Key valuation signals for THLLY:
Interest Coverage: 5.18 (60% below median its 10-year median of 13.02)
GF Value™: $42.40 vs. price of $50.92 (20.1% above fair value)
Industry Position: 40.4% below the Aerospace & Defense median (#127 of 241)
No single metric tells the full story. See the THLLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Thales is a French aerospace and defense industrial and one of Europe's largest defense contractors. The company has three segments: defense and security provides sensors, mission systems, communications, and control systems to European and export defense customers; aerospace sells avionics and satellites to the civil, defense, and governmental markets; and digital identity and security provides biometric, data, and identity security solutions, payments services, and the manufacturing of SIM cards.
90GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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