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. Granite Construction's
Operating Income
for the
three
months ended in Mar. 2026 was €-29 Mil. Granite Construction's Interest Expense for the
three
months ended in Mar. 2026 was €-14 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Granite Construction's Interest Coverage or its related term are showing as below:
FRA:GRG'
s Interest Coverage Range Over the Past 10 Years
Min: 2.8 Med: 5.55 Max: 6.8
Current: 4.83
FRA:GRG's Interest Coverage is ranked worse than 61.3% of 1349
companies
in the Construction industry
Industry Median: 7.94
vs FRA:GRG: 4.83
Granite Construction (FRA:GRG) 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 .
Granite Construction Interest Coverage Related Terms
Granite Construction Interest Coverage Historical Data
* Premium members only.
The historical data trend for Granite Construction'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.
FRA:GRG vs ACA, ROAD, MYRG: Interest Coverage Comparison
For the Engineering & Construction subindustry, Granite Construction'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.
Granite Construction Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, Granite Construction's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Granite Construction's Interest Coverage falls into.
Granite Construction 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:
Granite Construction did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Granite Construction (FRA:GRG) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Granite Construction and its competitors. Over the past decade, Granite Construction's Interest Coverage has ranged from 2.80 to 6.80. According to the industry distribution chart, Granite Construction ranks #827 out of 1349 companies in the Construction industry, placing it in the top 61.3%.
Is Granite Construction's Interest Coverage too high?
Granite Construction's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 2.80 to a high of 6.80. Based on the distribution chart, Granite Construction ranks #827 out of 1349 companies in the Construction industry, which is below the industry midpoint. Overall, Granite Construction has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Granite Construction's Interest Coverage compare to ACA and ROAD?
According to the Construction industry distribution chart, Granite Construction ranks #827 out of 1349 companies for Interest Coverage. This places Granite Construction in the lower half of its industry. The industry median Interest Coverage is 7.94. Historically, Granite Construction's own Interest Coverage has ranged from 2.80 to 6.80 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 Interest Coverage for a Construction company?
The median Interest Coverage among Construction companies is 7.94, based on 1,349 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. 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 Granite Construction and its competitors. For the Construction industry, the median Interest Coverage is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Granite Construction's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Granite Construction stock overvalued right now?
Based on GuruFocus' analysis, Granite Construction (FRA:GRG) is currently considered Significantly Overvalued. The stock's GF Value™ is €95.33, compared to a current price of €138.00 — trading 44.8% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Granite Construction's overall GF Score™ is 74/100 with 6 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 Granite Construction (FRA:GRG), the current Interest Coverage is 0 (At Loss) 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 Granite Construction (FRA:GRG) Overvalued in 2026?
Based on GuruFocus' analysis, Granite Construction stock appears to be overvalued.
The current stock price of €138.00 is trading 44.8% above its estimated GF Value™ of €95.33.
GuruFocus considers Granite Construction to be Significantly Overvalued.
Key valuation signals for FRA:GRG:
Interest Coverage: 0 (At Loss)
GF Value™: €95.33 vs. price of €138.00 (44.8% above fair value)
No single metric tells the full story. See the FRA:GRG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Granite Construction Inc engages in the construction and development of various infrastructure projects on behalf of public and private clients in the United States. The company focuses on heavy civil infrastructure projects, including roads, highways, transit facilities, airports, bridges, dams, tunnels, and other infrastructure projects. In addition, the company performs site preparation and infrastructure services for residential development, energy development, and other facilities. The majority of revenue is derived from the company's Construction operating segment, and rest from Materials segment.
74GF Score
Get the complete analysis for FRA:GRG
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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