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SK Innovation CoXKRX:096770 +4.25%65 Interest Coverage is 2.96 as of Jun. 2026, which is 33% below its 10-year median of 4.42. GuruFocus rates XKRX:096770 with a GF Score™ of 65/100 and a GF Value™ of ₩90,875.94 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 750 Oil & Gas companies, SK Innovation Co ranks worse than 71.6% 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. SK Innovation Co's
Operating Income
for the
three
months ended in Jun. 2026 was ₩4,548,009 Mil. SK Innovation Co's Interest Expense for the
three
months ended in Jun. 2026 was ₩-1,535,439 Mil.
SK Innovation Co's interest coverage for the quarter that ended in Jun. 2026 was 2.96.
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. SK Innovation Co Ltd interest coverage is 2.88, which is low.
The historical rank and industry rank for SK Innovation Co's Interest Coverage or its related term are showing as below:
XKRX:096770'
s Interest Coverage Range Over the Past 10 Years
Min: 0.24 Med: 4.42 Max: 15.61
Current: 2.88
XKRX:096770's Interest Coverage is ranked worse than 71.6% of 750
companies
in the Oil & Gas industry
Industry Median: 6.32
vs XKRX:096770: 2.88
SK Innovation Co (XKRX:096770) 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 .
SK Innovation Co Interest Coverage Related Terms
SK Innovation Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for SK Innovation Co'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.
XKRX:096770 vs MPC, VLO, PSX: Interest Coverage Comparison
For the Oil & Gas Refining & Marketing subindustry, SK Innovation Co'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.
SK Innovation Co Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, SK Innovation Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where SK Innovation Co'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.
SK Innovation Co (XKRX:096770) has a Interest Coverage of 2.96 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on SK Innovation Co and its competitors. This is 33% below median its historical median of 4.42. Over the past decade, SK Innovation Co's Interest Coverage has ranged from 0.24 to 15.61. According to the industry distribution chart, SK Innovation Co ranks #537 out of 750 companies in the Oil & Gas industry, placing it in the top 71.6%.
Is SK Innovation Co's Interest Coverage too high?
SK Innovation Co's current Interest Coverage of 2.96 is 33% below median its 10-year median of 4.42. Over the past 10 years, this metric has ranged from a low of 0.24 to a high of 15.61. The Oil & Gas industry median Interest Coverage is 6.32. SK Innovation Co's value of 2.96 is 53.2% below this industry median. Based on the distribution chart, SK Innovation Co ranks #537 out of 750 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, SK Innovation Co has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SK Innovation Co's Interest Coverage compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, SK Innovation Co ranks #537 out of 750 companies for Interest Coverage. This places SK Innovation Co in the lower half of its industry. The industry median Interest Coverage is 6.32. SK Innovation Co's value of 2.96 is 53.2% below this benchmark. Historically, SK Innovation Co's own Interest Coverage has ranged from 0.24 to 15.61 over the past decade. While the company's 10-year median is 4.42 vs. the industry median of 6.32, SK Innovation Co 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 6.32, based on 750 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. SK Innovation Co's current Interest Coverage of 2.96 is 53.2% 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 SK Innovation Co and its competitors. For the Oil & Gas industry, the median Interest Coverage is 6.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SK Innovation Co's current Interest Coverage is 2.96, which is 33% below median its own 10-year median of 4.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SK Innovation Co stock overvalued right now?
Based on GuruFocus' analysis, SK Innovation Co (XKRX:096770) is currently considered Significantly Overvalued. The stock's GF Value™ is ₩90,875.94, compared to a current price of ₩130,100.00 — trading 43.2% above its estimated fair value. The current Interest Coverage is 2.96, which is 33% below median its 10-year median of 4.42 and 53.2% below the Oil & Gas industry median of 6.32. SK Innovation Co's overall GF Score™ is 65/100 with 7 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 SK Innovation Co (XKRX:096770), the current Interest Coverage is 2.96 as of Jun. 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 SK Innovation Co (XKRX:096770) Overvalued in 2026?
Based on GuruFocus' analysis, SK Innovation Co stock appears to be overvalued.
The current stock price of ₩130,100.00 is trading 43.2% above its estimated GF Value™ of ₩90,875.94.
GuruFocus considers SK Innovation Co to be Significantly Overvalued.
Key valuation signals for XKRX:096770:
Interest Coverage: 2.96 (33% below median its 10-year median of 4.42)
GF Value™: ₩90,875.94 vs. price of ₩130,100.00 (43.2% above fair value)
Industry Position: 53.2% below the Oil & Gas median (#537 of 750)
No single metric tells the full story. See the XKRX:096770 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SK Innovation Co Ltd is a Korean-based company engaged in the production and sale of petroleum products, lubricants, and base oils. Its operating segments include Petroleum & Chemicals, Lubricant, Oil development, ENS, Batteries & Materials, and Other sectors. Its main products include eco-friendly gasoline, diesel, kerosene, aviation fuel, naphtha, olefins, aromatics, lubricant base oils, and batteries for electric vehicles. It generates the majority of its revenue from the Petroleum and Chemicals segment.
65GF Score
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