MCDIF (McDermott International) Financial Strength: 5 (As of Dec. 2025) — 25% Above Median

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MCDIF McDermott International Ltd MCDIF
25 GF Score
Price $4.50
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What is McDermott International Financial Strength?

McDermott International MCDIF 25 Financial Strength is 5 as of Dec. 2025, which is 25% above its 10-year median of 4.00. GuruFocus rates MCDIF with a GF Score™ of 25/100. The stock has 1 warning sign investors should review.

McDermott International has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

McDermott International's Interest Coverage for the quarter that ended in Dec. 2025 was 1.27. McDermott International's debt to revenue ratio for the quarter that ended in Dec. 2025 was 0.12. As of today, McDermott International's Altman Z-Score is 0.00.


McDermott International  (OTCPK:MCDIF) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

McDermott International has the Financial Strength Rank of 5.


McDermott International Financial Strength Related Terms


MCDIF vs VATE, SHIM, BLNK: Financial Strength Comparison

For the Engineering & Construction subindustry, McDermott International's Financial Strength, along with its competitors' market caps and Financial Strength 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.


McDermott International Financial Strength vs Construction Industry

For the Construction industry and Industrials sector, McDermott International's Financial Strength distribution charts can be found below:

* The bar in red indicates where McDermott International's Financial Strength falls into.


MCDIF
25GF Score
McDermott International Ltd MCDIF
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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McDermott International Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

McDermott International's Interest Expense for the months ended in Dec. 2025 was $-158 Mil. Its Operating Income for the months ended in Dec. 2025 was $200 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2025 was $999 Mil.

McDermott International's Interest Coverage for the quarter that ended in Dec. 2025 is

Interest Coverage=-1*Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*200/-158
=1.27

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

McDermott International's Debt to Revenue Ratio for the quarter that ended in Dec. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(177 + 999) / 9955
=0.12

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

McDermott International has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 5 mean?
McDermott International (MCDIF) has a Financial Strength of 5 as of Dec. 2025. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on McDermott International and its competitors. This is 25% above median its historical median of 4.00. Over the past decade, McDermott International's Financial Strength has ranged from 3.00 to 5.00.
Is McDermott International's Financial Strength too high?
McDermott International's current Financial Strength of 5 is 25% above median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 5.00. Overall, McDermott International has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does McDermott International's Financial Strength compare to VATE and SHIM?
McDermott International's Financial Strength of 5 can be compared against companies in the Construction industry. Historically, McDermott International's own Financial Strength has ranged from 3.00 to 5.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Construction company?
A good Financial Strength depends on the Construction industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on McDermott International and its competitors. McDermott International's current Financial Strength is 5, which is 25% above median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McDermott International stock overvalued right now?
McDermott International (MCDIF) has a current Financial Strength of 5. The current Financial Strength is 5, which is 25% above median its 10-year median of 4.00. McDermott International's overall GF Score™ is 25/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For McDermott International (MCDIF), the current Financial Strength is 5 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.

McDermott International Business Description

Address 915 North Eldridge Parkway, Houston, TX, USA, 77079
McDermott International Ltd is a fully integrated provider of engineering, procurement, construction, and installation (EPCI) solutions to the energy industry globally. The company designs and builds infrastructure to transport and process oil and gas, covering offshore, subsea, liquefied natural gas (LNG), and downstream oil and gas projects, including fixed, floating, and subsea production facilities, pipelines, storage systems, and processing plants. It also provides energy transition and sustainable engineering solutions. The company operates through the Low Carbon Solutions, Offshore Middle East, and Subsea and Floating Facilities segments, serving national and other oil and gas companies across energy-producing regions, and generates the majority of its revenue from United States.
25GF Score

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

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