TopBuildBLD +1.76%94 Interest Coverage is 4.78 as of Mar. 2026, which is 60% below its 10-year median of 11.96. GuruFocus rates BLD with a GF Score™ of 94/100 and a GF Value™ of $452.14 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,354 Construction companies, TopBuild ranks worse than 54.51% 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. TopBuild's
Operating Income
for the
three
months ended in Mar. 2026 was $175 Mil. TopBuild's Interest Expense for the
three
months ended in Mar. 2026 was $-37 Mil.
TopBuild's interest coverage for the quarter that ended in Mar. 2026 was 4.78.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for TopBuild's Interest Coverage or its related term are showing as below:
BLD'
s Interest Coverage Range Over the Past 10 Years
Min: 6.38 Med: 11.96 Max: 21.68
Current: 6.38
BLD's Interest Coverage is ranked worse than 54.51% of 1354
companies
in the Construction industry
Industry Median: 7.865
vs BLD: 6.38
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 .
TopBuild Interest Coverage Related Terms
TopBuild Interest Coverage Historical Data
* Premium members only.
The historical data trend for TopBuild'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.
For the Engineering & Construction subindustry, TopBuild'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.
TopBuild Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, TopBuild's Interest Coverage distribution charts can be found below:
* The bar in red indicates where TopBuild'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.
TopBuild (BLD) has a Interest Coverage of 4.78 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on TopBuild and its competitors. This is 60% below median its historical median of 11.96. Over the past decade, TopBuild's Interest Coverage has ranged from 6.38 to 21.68. According to the industry distribution chart, TopBuild ranks #738 out of 1354 companies in the Construction industry, placing it in the top 54.5%.
Is TopBuild's Interest Coverage too high?
TopBuild's current Interest Coverage of 4.78 is 60% below median its 10-year median of 11.96. Over the past 10 years, this metric has ranged from a low of 6.38 to a high of 21.68. The Construction industry median Interest Coverage is 7.87. TopBuild's value of 4.78 is 39.2% below this industry median. Based on the distribution chart, TopBuild ranks #738 out of 1354 companies in the Construction industry, which is below the industry midpoint. Overall, TopBuild has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does TopBuild's Interest Coverage compare to IESC and J?
According to the Construction industry distribution chart, TopBuild ranks #738 out of 1354 companies for Interest Coverage. This places TopBuild in the lower half of its industry. The industry median Interest Coverage is 7.87. TopBuild's value of 4.78 is 39.2% below this benchmark. Historically, TopBuild's own Interest Coverage has ranged from 6.38 to 21.68 over the past decade. While the company's 10-year median is 11.96 vs. the industry median of 7.87, TopBuild 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 a Construction company?
The median Interest Coverage among Construction companies is 7.87, based on 1,354 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. TopBuild's current Interest Coverage of 4.78 is 39.2% 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 TopBuild and its competitors. For the Construction industry, the median Interest Coverage is 7.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TopBuild's current Interest Coverage is 4.78, which is 60% below median its own 10-year median of 11.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TopBuild stock overvalued right now?
Based on GuruFocus' analysis, TopBuild (BLD) is currently considered Fairly Valued. The stock's GF Value™ is $452.14, compared to a current price of $423.01 — trading 6.4% below its estimated fair value. The current Interest Coverage is 4.78, which is 60% below median its 10-year median of 11.96 and 39.2% below the Construction industry median of 7.87. TopBuild's overall GF Score™ is 94/100 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 TopBuild (BLD), the current Interest Coverage is 4.78 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 TopBuild (BLD) Overvalued in 2026?
Based on GuruFocus' analysis, TopBuild stock appears to be undervalued.
The current stock price of $423.01 is trading 6.4% below its estimated GF Value™ of $452.14.
GuruFocus considers TopBuild to be Fairly Valued.
Key valuation signals for BLD:
Interest Coverage: 4.78 (60% below median its 10-year median of 11.96)
GF Value™: $452.14 vs. price of $423.01 (6.4% below fair value)
Industry Position: 39.2% below the Construction median (#738 of 1354)
No single metric tells the full story. See the BLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TopBuild Corp is an installer and distributor of insulation products. Its operating segments are: Installation Services and Specialty Distribution. The Installation Services segment, which generates maximum revenue, installs insulation, commercial roofing, and other building products like glass and windows, rain gutters, doors, etc, mainly in the residential new construction market. The Specialty Distribution segment distributes building and mechanical insulation, insulation accessories, and other building product materials for the residential, commercial, and industrial markets. In addition to insulation and accessories, it distributes rain gutters, closet shelving, roofing materials, and other items. Geographically, the firm mainly operates in the U.S. and, to a lesser extent, in Canada.
94GF Score
Get the complete analysis for BLD
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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