Installed Building ProductsIBP 96 Interest Coverage is 5.59 as of Mar. 2026, which is 18% below its 10-year median of 6.81. GuruFocus rates IBP with a GF Score™ of 96/100 and a GF Value™ of $225.55 (Fairly Valued). The stock has 3 warning signs investors should review. Among 78 Homebuilding & Construction companies, Installed Building Products ranks better than 64.1% 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. Installed Building Products's
Operating Income
for the
three
months ended in Mar. 2026 was $58 Mil. Installed Building Products's Interest Expense for the
three
months ended in Mar. 2026 was $-10 Mil.
Installed Building Products's interest coverage for the quarter that ended in Mar. 2026 was 5.59.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Installed Building Products's Interest Coverage or its related term are showing as below:
IBP'
s Interest Coverage Range Over the Past 10 Years
Min: 4.27 Med: 6.81 Max: 12.19
Current: 11.1
IBP's Interest Coverage is ranked better than 64.1% of 78
companies
in the Homebuilding & Construction industry
Industry Median: 8.305
vs IBP: 11.10
Installed Building Products (NYSE:IBP) 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 .
Installed Building Products Interest Coverage Related Terms
Installed Building Products Interest Coverage Historical Data
* 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.
Installed Building Products Interest Coverage Chart
IBP vs TMHC, MTH, CVCO: Interest Coverage Comparison
For the Residential Construction subindustry, Installed Building Products'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.
Installed Building Products Interest Coverage vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Installed Building Products's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Installed Building Products's Interest Coverage falls into.
Installed Building Products 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:
* 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.
Installed Building Products (IBP) has a Interest Coverage of 5.59 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Installed Building Products and its competitors. This is 18% below median its historical median of 6.81. Over the past decade, Installed Building Products' Interest Coverage has ranged from 4.27 to 12.19. According to the industry distribution chart, Installed Building Products ranks #28 out of 78 companies in the Homebuilding & Construction industry, placing it in the top 35.9%.
Is Installed Building Products' Interest Coverage too high?
Installed Building Products' current Interest Coverage of 5.59 is 18% below median its 10-year median of 6.81. Over the past 10 years, this metric has ranged from a low of 4.27 to a high of 12.19. The Homebuilding & Construction industry median Interest Coverage is 8.31. Installed Building Products' value of 5.59 is 32.7% below this industry median. Based on the distribution chart, Installed Building Products ranks #28 out of 78 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Installed Building Products has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Installed Building Products' Interest Coverage compare to TMHC and MTH?
According to the Homebuilding & Construction industry distribution chart, Installed Building Products ranks #28 out of 78 companies for Interest Coverage. This puts Installed Building Products in the upper half of its industry. The industry median Interest Coverage is 8.31. Installed Building Products' value of 5.59 is 32.7% below this benchmark. Historically, Installed Building Products' own Interest Coverage has ranged from 4.27 to 12.19 over the past decade. While the company's 10-year median is 6.81 vs. the industry median of 8.31, Installed Building Products 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 Homebuilding & Construction company?
The median Interest Coverage among Homebuilding & Construction companies is 8.31, based on 78 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. Installed Building Products's current Interest Coverage of 5.59 is 32.7% 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 Installed Building Products and its competitors. For the Homebuilding & Construction industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Installed Building Products's current Interest Coverage is 5.59, which is 18% below median its own 10-year median of 6.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Installed Building Products stock overvalued right now?
Based on GuruFocus' analysis, Installed Building Products (IBP) is currently considered Fairly Valued. The stock's GF Value™ is $225.55, compared to a current price of $223.30 — trading 1% below its estimated fair value. The current Interest Coverage is 5.59, which is 18% below median its 10-year median of 6.81 and 32.7% below the Homebuilding & Construction industry median of 8.31. Installed Building Products' overall GF Score™ is 96/100 with 3 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 Installed Building Products (IBP), the current Interest Coverage is 5.59 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 Installed Building Products (IBP) Overvalued in 2026?
Based on GuruFocus' analysis, Installed Building Products stock appears to be undervalued.
The current stock price of $223.30 is trading 1% below its estimated GF Value™ of $225.55.
GuruFocus considers Installed Building Products to be Fairly Valued.
Key valuation signals for IBP:
Interest Coverage: 5.59 (18% below median its 10-year median of 6.81)
GF Value™: $225.55 vs. price of $223.30 (1% below fair value)
Industry Position: 32.7% below the Homebuilding & Construction median (#28 of 78)
No single metric tells the full story. See the IBP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Installed Building Products Inc is an insulation installer serving the residential new construction market and are also a diversified installer of complementary building products, including waterproofing, fire-stopping and fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving, mirrors and other products throughout the United States. The company installs fiberglass insulation, spray foam insulation, and cellulose insulation. The company has three operating segments consisting of Installation, Manufacturing and Distribution operations. Majority of revenue is derived from Installation segment.
96GF Score
Get the complete analysis for IBP
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