Fortune Brands Innovations (LTS:0IRN) Interest Coverage: 2.43 (As of Mar. 2026) — 67% Below Median


LTS:0IRN Fortune Brands Innovations Inc LTS:0IRN
73 GF Score
Price $54.24
GF Value $66.03
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Fortune Brands Innovations Interest Coverage?

Fortune Brands Innovations LTS:0IRN +6.46% 73 Interest Coverage is 2.43 as of Mar. 2026, which is 67% below its 10-year median of 7.37. GuruFocus rates LTS:0IRN with a GF Score™ of 73/100 and a GF Value™ of $66.03 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,349 Construction companies, Fortune Brands Innovations ranks worse than 60.64% 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. Fortune Brands Innovations's Operating Income for the three months ended in Mar. 2026 was $65 Mil. Fortune Brands Innovations's Interest Expense for the three months ended in Mar. 2026 was $-27 Mil. Fortune Brands Innovations's interest coverage for the quarter that ended in Mar. 2026 was 2.43. The higher the ratio, the stronger the company's financial strength is.

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

LTS:0IRN' s Interest Coverage Range Over the Past 10 Years
Min: 4.99   Med: 7.37   Max: 14.29
Current: 4.99


LTS:0IRN's Interest Coverage is ranked worse than
60.64% of 1349 companies
in the Construction industry
Industry Median: 7.94 vs LTS:0IRN: 4.99

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


Fortune Brands Innovations  (LTS:0IRN) 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 .


Fortune Brands Innovations Interest Coverage Related Terms


Fortune Brands Innovations Interest Coverage Historical Data

* Premium members only.

The historical data trend for Fortune Brands Innovations'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.

Fortune Brands Innovations Interest Coverage Chart

Fortune Brands Innovations 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 9.82 6.84 5.86 6.16 5.39

Fortune Brands Innovations 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 4.26 5.94 6.53 4.76 2.43

LTS:0IRN vs LPX, TREX, GFF: Interest Coverage Comparison

For the Building Products & Equipment subindustry, Fortune Brands Innovations'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.


Fortune Brands Innovations Interest Coverage vs Construction Industry

For the Construction industry and Industrials sector, Fortune Brands Innovations's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Fortune Brands Innovations's Interest Coverage falls into.


LTS:0IRN
73GF Score
Fortune Brands Innovations Inc LTS:0IRN
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Fortune Brands Innovations 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.

Fortune Brands Innovations'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, Fortune Brands Innovations's Interest Expense was $-115 Mil. Its Operating Income was $621 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,789 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*621.4/-115.2
=5.39

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

Here, for the three months ended in Mar. 2026, Fortune Brands Innovations's Interest Expense was $-27 Mil. Its Operating Income was $65 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,963 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*64.5/-26.5
=2.43

* 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 2.43 mean?
Fortune Brands Innovations (LTS:0IRN) has a Interest Coverage of 2.43 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Fortune Brands Innovations and its competitors. This is 67% below median its historical median of 7.37. Over the past decade, Fortune Brands Innovations' Interest Coverage has ranged from 4.99 to 14.29. According to the industry distribution chart, Fortune Brands Innovations ranks #818 out of 1349 companies in the Construction industry, placing it in the top 60.6%.
Is Fortune Brands Innovations' Interest Coverage too high?
Fortune Brands Innovations' current Interest Coverage of 2.43 is 67% below median its 10-year median of 7.37. Over the past 10 years, this metric has ranged from a low of 4.99 to a high of 14.29. The Construction industry median Interest Coverage is 7.94. Fortune Brands Innovations' value of 2.43 is 69.4% below this industry median. Based on the distribution chart, Fortune Brands Innovations ranks #818 out of 1349 companies in the Construction industry, which is below the industry midpoint. Overall, Fortune Brands Innovations has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Fortune Brands Innovations' Interest Coverage compare to LPX and TREX?
According to the Construction industry distribution chart, Fortune Brands Innovations ranks #818 out of 1349 companies for Interest Coverage. This places Fortune Brands Innovations in the lower half of its industry. The industry median Interest Coverage is 7.94. Fortune Brands Innovations' value of 2.43 is 69.4% below this benchmark. Historically, Fortune Brands Innovations' own Interest Coverage has ranged from 4.99 to 14.29 over the past decade. While the company's 10-year median is 7.37 vs. the industry median of 7.94, Fortune Brands Innovations 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 7.94, 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. Fortune Brands Innovations's current Interest Coverage of 2.43 is 69.4% 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 Fortune Brands Innovations 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. Fortune Brands Innovations's current Interest Coverage is 2.43, which is 67% below median its own 10-year median of 7.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fortune Brands Innovations stock overvalued right now?
Based on GuruFocus' analysis, Fortune Brands Innovations (LTS:0IRN) is currently considered Modestly Undervalued. The stock's GF Value™ is $66.03, compared to a current price of $54.24 — trading 17.9% below its estimated fair value. The current Interest Coverage is 2.43, which is 67% below median its 10-year median of 7.37 and 69.4% below the Construction industry median of 7.94. Fortune Brands Innovations' overall GF Score™ is 73/100 with 5 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 Fortune Brands Innovations (LTS:0IRN), the current Interest Coverage is 2.43 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 Fortune Brands Innovations (LTS:0IRN) Overvalued in 2026?

Based on GuruFocus' analysis, Fortune Brands Innovations stock appears to be undervalued. The current stock price of $54.24 is trading 17.9% below its estimated GF Value™ of $66.03. GuruFocus considers Fortune Brands Innovations to be Modestly Undervalued.

Key valuation signals for LTS:0IRN:

  • Interest Coverage: 2.43 (67% below median its 10-year median of 7.37)
  • GF Value™: $66.03 vs. price of $54.24 (17.9% below fair value)
  • GF Score™: 73/100 with 5 warning signs
  • Industry Position: 69.4% below the Construction median (#818 of 1349)

No single metric tells the full story. See the LTS:0IRN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Fortune Brands Innovations Business Description

Address 1 Horizon Way, Building N, Deerfield, IL, USA, 60015-3888
Fortune Brands is a US-based homebuilding products company that sells building-related products serving R&R and new construction markets. The company operates in three segments: water, outdoors, and security. Water innovation, including plumbing fixtures and faucets, accounts for around 55% of total sales and features brands such as Moen, House of Rohl, and Aqualisa. The outdoors segment includes decking, railing, and doors and makes up 30% of total sales, featuring brands such as Larson, Fiberon, and Therma-Tru. The security segment, which includes smart residential padlocks, accounts for the remaining 15% of sales and features brands such as MasterLock, SentrySafe, Yale, and AmericanLock.
73GF Score

Get the complete analysis for LTS:0IRN

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

$54.24
Price
$66.03
GF Value