ITT (FRA:2II) Interest Coverage: 5.72 (As of Mar. 2026) — 82% Below Median


FRA:2II ITT Inc FRA:2II
91 GF Score
Price €169.70
GF Value €155.59
! 7 Warning Signs
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What is ITT Interest Coverage?

ITT FRA:2II +0.12% 91 Interest Coverage is 5.72 as of Mar. 2026, which is 82% below its 10-year median of 32.16. GuruFocus rates FRA:2II with a GF Score™ of 91/100 and a GF Value™ of €155.59. The stock has 7 warning signs investors should review. Among 2,329 Industrial Products companies, ITT ranks worse than 57.58% 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. ITT's Operating Income for the three months ended in Mar. 2026 was €122 Mil. ITT's Interest Expense for the three months ended in Mar. 2026 was €-21 Mil. ITT's interest coverage for the quarter that ended in Mar. 2026 was 5.72. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for ITT's Interest Coverage or its related term are showing as below:

FRA:2II' s Interest Coverage Range Over the Past 10 Years
Min: 10.63   Med: 32.16   Max: No Debt
Current: 10.63


FRA:2II's Interest Coverage is ranked worse than
57.58% of 2329 companies
in the Industrial Products industry
Industry Median: 14.79 vs FRA:2II: 10.63

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


ITT  (FRA:2II) 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 .


ITT Interest Coverage Related Terms


ITT Interest Coverage Historical Data

* Premium members only.

The historical data trend for ITT'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.

ITT Interest Coverage Chart

ITT Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only N/A 41.44 28.05 17.22 14.23

ITT Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.23 13.90 15.37 12.32 5.72

FRA:2II vs GNRC, NDSN, IEX: Interest Coverage Comparison

For the Specialty Industrial Machinery subindustry, ITT'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.


ITT Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, ITT's Interest Coverage distribution charts can be found below:

* The bar in red indicates where ITT's Interest Coverage falls into.


FRA:2II
91GF Score
ITT Inc FRA:2II
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

ITT Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


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

ITT's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, ITT's Interest Expense was €-41 Mil. Its Operating Income was €585 Mil. And its Long-Term Debt & Capital Lease Obligation was €497 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*584.563/-41.077
=14.23

ITT's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, ITT's Interest Expense was €-21 Mil. Its Operating Income was €122 Mil. And its Long-Term Debt & Capital Lease Obligation was €2,987 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*122.138/-21.365
=5.72

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 5.72 mean?
ITT (FRA:2II) has a Interest Coverage of 5.72 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ITT and its competitors. This is 82% below median its historical median of 32.16. Over the past decade, ITT's Interest Coverage has ranged from 10.63 to 10,000.00. According to the industry distribution chart, ITT ranks #1341 out of 2329 companies in the Industrial Products industry, placing it in the top 57.6%.
Is ITT's Interest Coverage too high?
ITT's current Interest Coverage of 5.72 is 82% below median its 10-year median of 32.16. Over the past 10 years, this metric has ranged from a low of 10.63 to a high of 10,000.00. The Industrial Products industry median Interest Coverage is 14.79. ITT's value of 5.72 is 61.3% below this industry median. Based on the distribution chart, ITT ranks #1341 out of 2329 companies in the Industrial Products industry, which is below the industry midpoint. Overall, ITT has a GF Score™ of 91/100, reflecting its overall financial health beyond just this single metric.
How does ITT's Interest Coverage compare to GNRC and NDSN?
According to the Industrial Products industry distribution chart, ITT ranks #1341 out of 2329 companies for Interest Coverage. This places ITT in the lower half of its industry. The industry median Interest Coverage is 14.79. ITT's value of 5.72 is 61.3% below this benchmark. Historically, ITT's own Interest Coverage has ranged from 10.63 to 10,000.00 over the past decade. While the company's 10-year median is 32.16 vs. the industry median of 14.79, ITT 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 Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.79, based on 2,329 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. ITT's current Interest Coverage of 5.72 is 61.3% 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 ITT and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ITT's current Interest Coverage is 5.72, which is 82% below median its own 10-year median of 32.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ITT stock overvalued right now?
ITT (FRA:2II) has a current Interest Coverage of 5.72. The stock's GF Value™ is €155.59, compared to a current price of €169.70 — trading 9.1% above its estimated fair value. The current Interest Coverage is 5.72, which is 82% below median its 10-year median of 32.16 and 61.3% below the Industrial Products industry median of 14.79. ITT's overall GF Score™ is 91/100 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 ITT (FRA:2II), the current Interest Coverage is 5.72 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 ITT (FRA:2II) Overvalued in 2026?

Based on GuruFocus' analysis, ITT stock appears to be overvalued. The current stock price of €169.70 is trading 9.1% above its estimated GF Value™ of €155.59.

Key valuation signals for FRA:2II:

  • Interest Coverage: 5.72 (82% below median its 10-year median of 32.16)
  • GF Value™: €155.59 vs. price of €169.70 (9.1% above fair value)
  • GF Score™: 91/100 with 7 warning signs
  • Industry Position: 61.3% below the Industrial Products median (#1341 of 2329)

No single metric tells the full story. See the FRA:2II stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


ITT Business Description

Other Exchanges ITT:USA2II:Germany
Address 100 Washington Boulevard, 6th Floor, Stamford, CT, USA, 06902
ITT began its journey as International Telephone & Telegraph in 1920. Through decades of acquisitions in the mid-1900s, ITT went from manufacturing telephone switching equipment to operating hotels, car rentals, insurance agencies, and bread bakeries. In 1995, the firm split into three separate entities, one of which is the ITT in current operation. After a few more spinoffs in 2011, today ITT Inc. sells automotive, industrial, and aerospace products such as brake pads, seals, pumps, valves, connectors, and regulators. It has operations around the globe with notable exposures to North America, Europe, and Asia.
91GF Score

Get the complete analysis for FRA:2II

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

€169.70
Price
€155.59
GF Value