EatonMEX:ETN1N -4.28%82 Interest Coverage is 11.06 as of Mar. 2026, which is 30% below its 10-year median of 15.75. GuruFocus rates MEX:ETN1N with a GF Score™ of 82/100 and a GF Value™ of MXN6,894.73 (Fairly Valued). The stock has 6 warning signs investors should review. Among 2,330 Industrial Products companies, Eaton ranks better than 52.02% 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. Eaton's
Operating Income
for the
three
months ended in Mar. 2026 was MXN21,134 Mil. Eaton's Interest Expense for the
three
months ended in Mar. 2026 was MXN-1,911 Mil.
Eaton's interest coverage for the quarter that ended in Mar. 2026 was 11.06.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Eaton's Interest Coverage or its related term are showing as below:
MEX:ETN1N'
s Interest Coverage Range Over the Past 10 Years
Min: 9.87 Med: 15.75 Max: 35.63
Current: 16.5
MEX:ETN1N's Interest Coverage is ranked better than 52.02% of 2330
companies
in the Industrial Products industry
Industry Median: 14.835
vs MEX:ETN1N: 16.50
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 .
Eaton Interest Coverage Related Terms
Eaton Interest Coverage Historical Data
* Premium members only.
The historical data trend for Eaton'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.
MEX:ETN1N vs PH, CMI, EMR: Interest Coverage Comparison
For the Specialty Industrial Machinery subindustry, Eaton'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.
Eaton Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Eaton's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Eaton's Interest Coverage falls into.
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.
Eaton (MEX:ETN1N) has a Interest Coverage of 11.06 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Eaton and its competitors. This is 30% below median its historical median of 15.75. Over the past decade, Eaton's Interest Coverage has ranged from 9.87 to 35.63. According to the industry distribution chart, Eaton ranks #1118 out of 2330 companies in the Industrial Products industry, placing it in the top 48%.
Is Eaton's Interest Coverage too high?
Eaton's current Interest Coverage of 11.06 is 30% below median its 10-year median of 15.75. Over the past 10 years, this metric has ranged from a low of 9.87 to a high of 35.63. The Industrial Products industry median Interest Coverage is 14.84. Eaton's value of 11.06 is 25.4% below this industry median. Based on the distribution chart, Eaton ranks #1118 out of 2330 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Eaton has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Eaton's Interest Coverage compare to PH and CMI?
According to the Industrial Products industry distribution chart, Eaton ranks #1118 out of 2330 companies for Interest Coverage. This puts Eaton in the upper half of its industry. The industry median Interest Coverage is 14.84. Eaton's value of 11.06 is 25.4% below this benchmark. Historically, Eaton's own Interest Coverage has ranged from 9.87 to 35.63 over the past decade. While the company's 10-year median is 15.75 vs. the industry median of 14.84, Eaton 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 14.84, based on 2,330 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. Eaton's current Interest Coverage of 11.06 is 25.4% 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 Eaton and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eaton's current Interest Coverage is 11.06, which is 30% below median its own 10-year median of 15.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eaton stock overvalued right now?
Based on GuruFocus' analysis, Eaton (MEX:ETN1N) is currently considered Fairly Valued. The stock's GF Value™ is MXN6,894.73, compared to a current price of MXN7,226.00 — trading 4.8% above its estimated fair value. The current Interest Coverage is 11.06, which is 30% below median its 10-year median of 15.75 and 25.4% below the Industrial Products industry median of 14.84. Eaton's overall GF Score™ is 82/100 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 Eaton (MEX:ETN1N), the current Interest Coverage is 11.06 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 Eaton (MEX:ETN1N) Overvalued in 2026?
Based on GuruFocus' analysis, Eaton stock appears to be overvalued.
The current stock price of MXN7,226.00 is trading 4.8% above its estimated GF Value™ of MXN6,894.73.
GuruFocus considers Eaton to be Fairly Valued.
Key valuation signals for MEX:ETN1N:
Interest Coverage: 11.06 (30% below median its 10-year median of 15.75)
GF Value™: MXN6,894.73 vs. price of MXN7,226.00 (4.8% above fair value)
Industry Position: 25.4% below the Industrial Products median (#1118 of 2330)
No single metric tells the full story. See the MEX:ETN1N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1911 by Joseph Eaton, the eponymous company began by selling truck axles in New Jersey. Eaton has since become an industrial powerhouse largely through acquisitions in various end markets. Eaton's portfolio can broadly be divided into two parts: its electrical and industrial businesses. Its electrical portfolio (representing around 70% of company revenue) sells components within data centers, utilities, and commercial and residential buildings, while its industrial business (30% of revenue) sells components within commercial and passenger vehicles and aircraft. Eaton receives favorable tax treatment as a domiciliary of Ireland, but it generates over half of its revenue within the US.
82GF Score
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