Balfour BeattyBLFBY 78 Interest Coverage is 5.50 as of Dec. 2025, which is 64% above its 10-year median of 3.36. GuruFocus rates BLFBY with a GF Score™ of 78/100 and a GF Value™ of $14.84 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,354 Construction companies, Balfour Beatty ranks worse than 59.23% 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. Balfour Beatty's
Operating Income
for the
six
months ended in Dec. 2025 was $133 Mil. Balfour Beatty's Interest Expense for the
six
months ended in Dec. 2025 was $-24 Mil.
Balfour Beatty's interest coverage for the quarter that ended in Dec. 2025 was 5.50.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Balfour Beatty's Interest Coverage or its related term are showing as below:
BLFBY'
s Interest Coverage Range Over the Past 10 Years
Min: 0.09 Med: 3.36 Max: 11.71
Current: 5.37
BLFBY's Interest Coverage is ranked worse than 59.23% of 1354
companies
in the Construction industry
Industry Median: 7.865
vs BLFBY: 5.37
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 .
Balfour Beatty Interest Coverage Related Terms
Balfour Beatty Interest Coverage Historical Data
* Premium members only.
The historical data trend for Balfour Beatty'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.
BLFBY vs PWR, FIX, EME: Interest Coverage Comparison
For the Engineering & Construction subindustry, Balfour Beatty'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.
Balfour Beatty Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, Balfour Beatty's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Balfour Beatty'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.
Balfour Beatty (BLFBY) has a Interest Coverage of 5.50 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Balfour Beatty and its competitors. This is 64% above median its historical median of 3.36. Over the past decade, Balfour Beatty's Interest Coverage has ranged from 0.09 to 11.71. According to the industry distribution chart, Balfour Beatty ranks #802 out of 1354 companies in the Construction industry, placing it in the top 59.2%.
Is Balfour Beatty's Interest Coverage too high?
Balfour Beatty's current Interest Coverage of 5.50 is 64% above median its 10-year median of 3.36. Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 11.71. The Construction industry median Interest Coverage is 7.87. Balfour Beatty's value of 5.50 is 30.1% below this industry median. Based on the distribution chart, Balfour Beatty ranks #802 out of 1354 companies in the Construction industry, which is below the industry midpoint. Overall, Balfour Beatty has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Balfour Beatty's Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, Balfour Beatty ranks #802 out of 1354 companies for Interest Coverage. This places Balfour Beatty in the lower half of its industry. The industry median Interest Coverage is 7.87. Balfour Beatty's value of 5.50 is 30.1% below this benchmark. Historically, Balfour Beatty's own Interest Coverage has ranged from 0.09 to 11.71 over the past decade. While the company's 10-year median is 3.36 vs. the industry median of 7.87, Balfour Beatty 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. Balfour Beatty's current Interest Coverage of 5.50 is 30.1% 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 Balfour Beatty 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. Balfour Beatty's current Interest Coverage is 5.50, which is 64% above median its own 10-year median of 3.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Balfour Beatty stock overvalued right now?
Based on GuruFocus' analysis, Balfour Beatty (BLFBY) is currently considered Significantly Overvalued. The stock's GF Value™ is $14.84, compared to a current price of $22.14 — trading 49.2% above its estimated fair value. The current Interest Coverage is 5.50, which is 64% above median its 10-year median of 3.36 and 30.1% below the Construction industry median of 7.87. Balfour Beatty's overall GF Score™ is 78/100 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 Balfour Beatty (BLFBY), the current Interest Coverage is 5.50 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.
Is Balfour Beatty (BLFBY) Overvalued in 2026?
Based on GuruFocus' analysis, Balfour Beatty stock appears to be overvalued.
The current stock price of $22.14 is trading 49.2% above its estimated GF Value™ of $14.84.
GuruFocus considers Balfour Beatty to be Significantly Overvalued.
Key valuation signals for BLFBY:
Interest Coverage: 5.50 (64% above median its 10-year median of 3.36)
GF Value™: $14.84 vs. price of $22.14 (49.2% above fair value)
Industry Position: 30.1% below the Construction median (#802 of 1354)
No single metric tells the full story. See the BLFBY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Balfour Beatty PLC finances builds, and maintains infrastructure projects. It finances, develops, builds, maintains, and operates the increasingly complex and critical infrastructure that supports national economies and delivers projects at the heart of local communities. It operates three business segments: Construction services (majority of total revenue), Support services, and Infrastructure investments. It will invest directly in infrastructure assets also invests in real estate-type assets, in particular private residential and student accommodation assets. The majority of sales are derived from the United Kingdom and the United States.
78GF Score
Get the complete analysis for BLFBY
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BLFBY has been successfully added to your 
