Axia EnergiaXMAD:XAXIA 78 Interest Coverage is 2.59 as of Mar. 2026, which is 14% above its 10-year median of 2.27. GuruFocus rates XMAD:XAXIA with a GF Score™ of 78/100 and a GF Value™ of €6.87 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 320 Utilities - Independent Power Producers companies, Axia Energia ranks worse than 51.56% 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. Axia Energia's
Operating Income
for the
three
months ended in Mar. 2026 was €903 Mil. Axia Energia's Interest Expense for the
three
months ended in Mar. 2026 was €-348 Mil.
Axia Energia's interest coverage for the quarter that ended in Mar. 2026 was 2.59.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Axia Energia's Interest Coverage or its related term are showing as below:
XMAD:XAXIA'
s Interest Coverage Range Over the Past 10 Years
Min: 1.24 Med: 2.27 Max: 6.57
Current: 2.75
XMAD:XAXIA's Interest Coverage is ranked worse than 51.56% of 320
companies
in the Utilities - Independent Power Producers industry
Industry Median: 2.95
vs XMAD:XAXIA: 2.75
Axia Energia (XMAD:XAXIA) 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 .
Axia Energia Interest Coverage Related Terms
Axia Energia Interest Coverage Historical Data
* Premium members only.
The historical data trend for Axia Energia'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.
Axia Energia Interest Coverage Competitor Comparison
For the Utilities - Renewable subindustry, Axia Energia'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.
Axia Energia Interest Coverage vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Axia Energia's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Axia Energia'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.
Axia Energia (XMAD:XAXIA) has a Interest Coverage of 2.59 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Axia Energia and its competitors. This is 14% above median its historical median of 2.27. Over the past decade, Axia Energia's Interest Coverage has ranged from 1.24 to 6.57. According to the industry distribution chart, Axia Energia ranks #165 out of 320 companies in the Utilities - Independent Power Producers industry, placing it in the top 51.6%.
Is Axia Energia's Interest Coverage too high?
Axia Energia's current Interest Coverage of 2.59 is 14% above median its 10-year median of 2.27. Over the past 10 years, this metric has ranged from a low of 1.24 to a high of 6.57. The Utilities - Independent Power Producers industry median Interest Coverage is 2.95. Axia Energia's value of 2.59 is 12.2% below this industry median. Based on the distribution chart, Axia Energia ranks #165 out of 320 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Axia Energia has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Axia Energia's Interest Coverage compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Axia Energia ranks #165 out of 320 companies for Interest Coverage. This places Axia Energia in the lower half of its industry. The industry median Interest Coverage is 2.95. Axia Energia's value of 2.59 is 12.2% below this benchmark. Historically, Axia Energia's own Interest Coverage has ranged from 1.24 to 6.57 over the past decade. While the company's 10-year median is 2.27 vs. the industry median of 2.95, Axia Energia 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 Utilities - Independent Power Producers company?
The median Interest Coverage among Utilities - Independent Power Producers companies is 2.95, based on 320 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. Axia Energia's current Interest Coverage of 2.59 is 12.2% 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 Axia Energia and its competitors. For the Utilities - Independent Power Producers industry, the median Interest Coverage is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axia Energia's current Interest Coverage is 2.59, which is 14% above median its own 10-year median of 2.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axia Energia stock overvalued right now?
Based on GuruFocus' analysis, Axia Energia (XMAD:XAXIA) is currently considered Modestly Overvalued. The stock's GF Value™ is €6.87, compared to a current price of €8.95 — trading 30.3% above its estimated fair value. The current Interest Coverage is 2.59, which is 14% above median its 10-year median of 2.27 and 12.2% below the Utilities - Independent Power Producers industry median of 2.95. Axia Energia's overall GF Score™ is 78/100 with 4 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 Axia Energia (XMAD:XAXIA), the current Interest Coverage is 2.59 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 Axia Energia (XMAD:XAXIA) Overvalued in 2026?
Based on GuruFocus' analysis, Axia Energia stock appears to be overvalued.
The current stock price of €8.95 is trading 30.3% above its estimated GF Value™ of €6.87.
GuruFocus considers Axia Energia to be Modestly Overvalued.
Key valuation signals for XMAD:XAXIA:
Interest Coverage: 2.59 (14% above median its 10-year median of 2.27)
GF Value™: €6.87 vs. price of €8.95 (30.3% above fair value)
Industry Position: 12.2% below the Utilities - Independent Power Producers median (#165 of 320)
No single metric tells the full story. See the XMAD:XAXIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Axia Energia is engaged in the generation, transmission, and commercialization of electricity in Brazil. The company operates a portfolio of wind, thermal, hydro, and nuclear power plants located throughout the country.
78GF Score
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