Hill & Smith (LSE:HILS) Interest Coverage: 12.71 (As of Dec. 2025) — 18% Above Median


LSE:HILS Hill & Smith PLC LSE:HILS
89 GF Score
Price £27.60
GF Value £20.34
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Hill & Smith Interest Coverage?

Hill & Smith LSE:HILS 89 Interest Coverage is 12.71 as of Dec. 2025, which is 18% above its 10-year median of 10.81. GuruFocus rates LSE:HILS with a GF Score™ of 89/100 and a GF Value™ of £20.34 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,354 Construction companies, Hill & Smith ranks better than 62.11% 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. Hill & Smith's Operating Income for the six months ended in Dec. 2025 was £52.1 Mil. Hill & Smith's Interest Expense for the six months ended in Dec. 2025 was £-4.1 Mil. Hill & Smith's interest coverage for the quarter that ended in Dec. 2025 was 12.71. The higher the ratio, the stronger the company's financial strength is.

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

LSE:HILS' s Interest Coverage Range Over the Past 10 Years
Min: 8.29   Med: 10.81   Max: 18.07
Current: 13.8


LSE:HILS's Interest Coverage is ranked better than
62.11% of 1354 companies
in the Construction industry
Industry Median: 7.865 vs LSE:HILS: 13.80

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


Hill & Smith  (LSE:HILS) 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 .


Hill & Smith Interest Coverage Related Terms


Hill & Smith Interest Coverage Historical Data

* Premium members only.

The historical data trend for Hill & Smith'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.

Hill & Smith Interest Coverage Chart

Hill & Smith 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 8.29 10.75 10.87 10.49 13.80

Hill & Smith Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 10.55 12.57 8.69 14.78 12.71

LSE:HILS vs PWR, FIX, EME: Interest Coverage Comparison

For the Engineering & Construction subindustry, Hill & Smith'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.


Hill & Smith Interest Coverage vs Construction Industry

For the Construction industry and Industrials sector, Hill & Smith's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hill & Smith's Interest Coverage falls into.


LSE:HILS
89GF Score
Hill & Smith PLC LSE:HILS
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hill & Smith 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.

Hill & Smith'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, Hill & Smith's Interest Expense was £-8.7 Mil. Its Operating Income was £120.1 Mil. And its Long-Term Debt & Capital Lease Obligation was £86.2 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*120.1/-8.7
=13.80

Hill & Smith's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Hill & Smith's Interest Expense was £-4.1 Mil. Its Operating Income was £52.1 Mil. And its Long-Term Debt & Capital Lease Obligation was £86.2 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*52.1/-4.1
=12.71

* 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 12.71 mean?
Hill & Smith (LSE:HILS) has a Interest Coverage of 12.71 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hill & Smith and its competitors. This is 18% above median its historical median of 10.81. Over the past decade, Hill & Smith's Interest Coverage has ranged from 8.29 to 18.07. According to the industry distribution chart, Hill & Smith ranks #513 out of 1354 companies in the Construction industry, placing it in the top 37.9%.
Is Hill & Smith's Interest Coverage too high?
Hill & Smith's current Interest Coverage of 12.71 is 18% above median its 10-year median of 10.81. Over the past 10 years, this metric has ranged from a low of 8.29 to a high of 18.07. The Construction industry median Interest Coverage is 7.87. Hill & Smith's value of 12.71 is 61.6% above this industry median. Based on the distribution chart, Hill & Smith ranks #513 out of 1354 companies in the Construction industry, which is above the industry midpoint. Overall, Hill & Smith has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hill & Smith's Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, Hill & Smith ranks #513 out of 1354 companies for Interest Coverage. This puts Hill & Smith in the upper half of its industry. The industry median Interest Coverage is 7.87. Hill & Smith's value of 12.71 is 61.6% above this benchmark. Historically, Hill & Smith's own Interest Coverage has ranged from 8.29 to 18.07 over the past decade. While the company's 10-year median is 10.81 vs. the industry median of 7.87, Hill & Smith has consistently been above 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. Hill & Smith's current Interest Coverage of 12.71 is 61.6% above 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 Hill & Smith 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. Hill & Smith's current Interest Coverage is 12.71, which is 18% above median its own 10-year median of 10.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hill & Smith stock overvalued right now?
Based on GuruFocus' analysis, Hill & Smith (LSE:HILS) is currently considered Significantly Overvalued. The stock's GF Value™ is £20.34, compared to a current price of £27.60 — trading 35.7% above its estimated fair value. The current Interest Coverage is 12.71, which is 18% above median its 10-year median of 10.81 and 61.6% above the Construction industry median of 7.87. Hill & Smith's overall GF Score™ is 89/100 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 Hill & Smith (LSE:HILS), the current Interest Coverage is 12.71 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 Hill & Smith (LSE:HILS) Overvalued in 2026?

Based on GuruFocus' analysis, Hill & Smith stock appears to be overvalued. The current stock price of £27.60 is trading 35.7% above its estimated GF Value™ of £20.34. GuruFocus considers Hill & Smith to be Significantly Overvalued.

Key valuation signals for LSE:HILS:

  • Interest Coverage: 12.71 (18% above median its 10-year median of 10.81)
  • GF Value™: £20.34 vs. price of £27.60 (35.7% above fair value)
  • GF Score™: 89/100 with 6 warning signs
  • Industry Position: 61.6% above the Construction median (#513 of 1354)

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


Hill & Smith Business Description

Address Westhaven House, Arleston Way, Shirley, Solihull, West Midlands, GBR, B90 4LH
Hill & Smith PLC creates sustainable infrastructure and safe transport through innovation. It is organized into three segments namely: The US Engineered Solutions segment comprises all U.S operating companies excluding Galvanizing Services; the UK & India Engineered Solutions segment comprises all UK operating companies and India, excluding Galvanizing Services; and the Galvanizing Services segment contains a group of companies supplying galvanizing and related materials coating services. It derives maximum revenue from US Engineered Solutions segment. Geographically, the company operates in UK, Rest of Europe, North America, The Middle East, Rest of Asia, and Rest of the world. It generates maximum revenue from North America.
89GF Score

Get the complete analysis for LSE:HILS

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

£27.60
Price
£20.34
GF Value