Advantage EnergyTSX:AAV +1.48%84 Interest Coverage is 3.18 as of Mar. 2026, which is 96% above its 10-year median of 1.62. GuruFocus rates TSX:AAV with a GF Score™ of 84/100 and a GF Value™ of C$12.36 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 731 Oil & Gas companies, Advantage Energy ranks worse than 87.28% 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. Advantage Energy's
Operating Income
for the
three
months ended in Mar. 2026 was C$46.8 Mil. Advantage Energy's Interest Expense for the
three
months ended in Mar. 2026 was C$-14.7 Mil.
Advantage Energy's interest coverage for the quarter that ended in Mar. 2026 was 3.18.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Advantage Energy's Interest Coverage or its related term are showing as below:
TSX:AAV'
s Interest Coverage Range Over the Past 10 Years
Min: 0.29 Med: 1.62 Max: 27.09
Current: 1.48
TSX:AAV's Interest Coverage is ranked worse than 87.28% of 731
companies
in the Oil & Gas industry
Industry Median: 5.89
vs TSX:AAV: 1.48
Advantage Energy (TSX:AAV) 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 .
Advantage Energy Interest Coverage Related Terms
Advantage Energy Interest Coverage Historical Data
* Premium members only.
The historical data trend for Advantage Energy'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.
TSX:AAV vs COP, EOG, FANG: Interest Coverage Comparison
For the Oil & Gas E&P subindustry, Advantage Energy'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.
Advantage Energy Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Advantage Energy's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Advantage Energy'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.
Advantage Energy (TSX:AAV) has a Interest Coverage of 3.18 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Advantage Energy and its competitors. This is 96% above median its historical median of 1.62. Over the past decade, Advantage Energy's Interest Coverage has ranged from 0.29 to 27.09. According to the industry distribution chart, Advantage Energy ranks #638 out of 731 companies in the Oil & Gas industry, placing it in the top 87.3%.
Is Advantage Energy's Interest Coverage too high?
Advantage Energy's current Interest Coverage of 3.18 is 96% above median its 10-year median of 1.62. Over the past 10 years, this metric has ranged from a low of 0.29 to a high of 27.09. The Oil & Gas industry median Interest Coverage is 5.89. Advantage Energy's value of 3.18 is 46% below this industry median. Based on the distribution chart, Advantage Energy ranks #638 out of 731 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Advantage Energy has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Advantage Energy's Interest Coverage compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Advantage Energy ranks #638 out of 731 companies for Interest Coverage. This places Advantage Energy in the lower half of its industry. The industry median Interest Coverage is 5.89. Advantage Energy's value of 3.18 is 46% below this benchmark. Historically, Advantage Energy's own Interest Coverage has ranged from 0.29 to 27.09 over the past decade. While the company's 10-year median is 1.62 vs. the industry median of 5.89, Advantage Energy 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 Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 731 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. Advantage Energy's current Interest Coverage of 3.18 is 46% 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 Advantage Energy and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advantage Energy's current Interest Coverage is 3.18, which is 96% above median its own 10-year median of 1.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advantage Energy stock overvalued right now?
Based on GuruFocus' analysis, Advantage Energy (TSX:AAV) is currently considered Modestly Undervalued. The stock's GF Value™ is C$12.36, compared to a current price of C$10.30 — trading 16.7% below its estimated fair value. The current Interest Coverage is 3.18, which is 96% above median its 10-year median of 1.62 and 46% below the Oil & Gas industry median of 5.89. Advantage Energy's overall GF Score™ is 84/100 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 Advantage Energy (TSX:AAV), the current Interest Coverage is 3.18 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 Advantage Energy (TSX:AAV) Overvalued in 2026?
Based on GuruFocus' analysis, Advantage Energy stock appears to be undervalued.
The current stock price of C$10.30 is trading 16.7% below its estimated GF Value™ of C$12.36.
GuruFocus considers Advantage Energy to be Modestly Undervalued.
Key valuation signals for TSX:AAV:
Interest Coverage: 3.18 (96% above median its 10-year median of 1.62)
GF Value™: C$12.36 vs. price of C$10.30 (16.7% below fair value)
Industry Position: 46% below the Oil & Gas median (#638 of 731)
No single metric tells the full story. See the TSX:AAV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advantage Energy Ltd is an energy producer with a position in the Western Canadian Sedimentary Basin. Additionally, it provides carbon capture and storage (CCS) solutions to emitters of carbon dioxide through its subsidiary. Its segments include Advantage (natural gas and liquids producer) engaged in the business of natural gas, crude oil and liquids production from its Montney and Charlie Lake resource plays in Alberta and B.C.; and Entropy (carbon capture and storage) provides carbon capture and storage solutions to emitters of carbon dioxide. Entropy captures and sequesters carbon at Advantage's Glacier Gas Plant.
84GF Score
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