RLLWF (Reliance Worldwide) Interest Coverage: 3.09 (As of Dec. 2025) — 53% Below Median


RLLWF Reliance Worldwide Corp Ltd RLLWF
82 GF Score
Price $2.55
GF Value $3.06
Valuation Modestly Undervalued
! 6 Warning Signs
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What is Reliance Worldwide Interest Coverage?

Reliance Worldwide RLLWF 82 Interest Coverage is 3.09 as of Dec. 2025, which is 53% below its 10-year median of 6.53. GuruFocus rates RLLWF with a GF Score™ of 82/100 and a GF Value™ of $3.06 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,354 Construction companies, Reliance Worldwide ranks worse than 62.56% 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. Reliance Worldwide's Operating Income for the six months ended in Dec. 2025 was $38 Mil. Reliance Worldwide's Interest Expense for the six months ended in Dec. 2025 was $-12 Mil. Reliance Worldwide's interest coverage for the quarter that ended in Dec. 2025 was 3.09. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Reliance Worldwide's Interest Coverage or its related term are showing as below:

RLLWF' s Interest Coverage Range Over the Past 10 Years
Min: 4.69   Med: 6.53   Max: 26.95
Current: 4.69


RLLWF's Interest Coverage is ranked worse than
62.56% of 1354 companies
in the Construction industry
Industry Median: 7.865 vs RLLWF: 4.69

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


Reliance Worldwide  (OTCPK:RLLWF) 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 .


Reliance Worldwide Interest Coverage Related Terms


Reliance Worldwide Interest Coverage Historical Data

* Premium members only.

The historical data trend for Reliance Worldwide'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.

Reliance Worldwide Interest Coverage Chart

Reliance Worldwide Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 26.95 12.70 5.30 4.99 5.42

Reliance Worldwide Semi-Annual Data
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 3.48 6.85 4.59 6.78 3.09

RLLWF vs TT, JCI, CARR: Interest Coverage Comparison

For the Building Products & Equipment subindustry, Reliance Worldwide'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.


Reliance Worldwide Interest Coverage vs Construction Industry

For the Construction industry and Industrials sector, Reliance Worldwide's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Reliance Worldwide's Interest Coverage falls into.


RLLWF
82GF Score
Reliance Worldwide Corp Ltd RLLWF
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Reliance Worldwide 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.

Reliance Worldwide's Interest Coverage for the fiscal year that ended in Jun. 2025 is calculated as

Here, for the fiscal year that ended in Jun. 2025, Reliance Worldwide's Interest Expense was $-25 Mil. Its Operating Income was $134 Mil. And its Long-Term Debt & Capital Lease Obligation was $443 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*134.269/-24.787
=5.42

Reliance Worldwide's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Reliance Worldwide's Interest Expense was $-12 Mil. Its Operating Income was $38 Mil. And its Long-Term Debt & Capital Lease Obligation was $429 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*38.467/-12.445
=3.09

* 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 3.09 mean?
Reliance Worldwide (RLLWF) has a Interest Coverage of 3.09 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Reliance Worldwide and its competitors. This is 53% below median its historical median of 6.53. Over the past decade, Reliance Worldwide's Interest Coverage has ranged from 4.69 to 26.95. According to the industry distribution chart, Reliance Worldwide ranks #847 out of 1354 companies in the Construction industry, placing it in the top 62.6%.
Is Reliance Worldwide's Interest Coverage too high?
Reliance Worldwide's current Interest Coverage of 3.09 is 53% below median its 10-year median of 6.53. Over the past 10 years, this metric has ranged from a low of 4.69 to a high of 26.95. The Construction industry median Interest Coverage is 7.87. Reliance Worldwide's value of 3.09 is 60.7% below this industry median. Based on the distribution chart, Reliance Worldwide ranks #847 out of 1354 companies in the Construction industry, which is below the industry midpoint. Overall, Reliance Worldwide has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Reliance Worldwide's Interest Coverage compare to TT and JCI?
According to the Construction industry distribution chart, Reliance Worldwide ranks #847 out of 1354 companies for Interest Coverage. This places Reliance Worldwide in the lower half of its industry. The industry median Interest Coverage is 7.87. Reliance Worldwide's value of 3.09 is 60.7% below this benchmark. Historically, Reliance Worldwide's own Interest Coverage has ranged from 4.69 to 26.95 over the past decade. While the company's 10-year median is 6.53 vs. the industry median of 7.87, Reliance Worldwide 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 7.87, 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. Reliance Worldwide's current Interest Coverage of 3.09 is 60.7% 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 Reliance Worldwide 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. Reliance Worldwide's current Interest Coverage is 3.09, which is 53% below median its own 10-year median of 6.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reliance Worldwide stock overvalued right now?
Based on GuruFocus' analysis, Reliance Worldwide (RLLWF) is currently considered Modestly Undervalued. The stock's GF Value™ is $3.06, compared to a current price of $2.55 — trading 16.7% below its estimated fair value. The current Interest Coverage is 3.09, which is 53% below median its 10-year median of 6.53 and 60.7% below the Construction industry median of 7.87. Reliance Worldwide'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 Reliance Worldwide (RLLWF), the current Interest Coverage is 3.09 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 Reliance Worldwide (RLLWF) Overvalued in 2026?

Based on GuruFocus' analysis, Reliance Worldwide stock appears to be undervalued. The current stock price of $2.55 is trading 16.7% below its estimated GF Value™ of $3.06. GuruFocus considers Reliance Worldwide to be Modestly Undervalued.

Key valuation signals for RLLWF:

  • Interest Coverage: 3.09 (53% below median its 10-year median of 6.53)
  • GF Value™: $3.06 vs. price of $2.55 (16.7% below fair value)
  • GF Score™: 82/100 with 6 warning signs
  • Industry Position: 60.7% below the Construction median (#847 of 1354)

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


Reliance Worldwide Business Description

Other Exchanges 0EU:GermanyRWC:Australia
Address 140 William Street, Level 32, Melbourne, VIC, AUS, 3000
Reliance manufactures behind-the-wall plumbing products, which include fittings, pipes, valves, fluid dispensers, pipe systems, and appliance connectors. Its main segment is the US, which comprises about two-thirds of our midcycle EBITDA estimates. Other segments include EMEA and the Asia-Pacific, which contribute about 15% and 20%, respectively, of our midcycle EBITDA estimates. The firm is best known for its push-to-connect products, including the brands SharkBite in the US and John Guest in the United Kingdom. Reliance's primary target segment is the do-it-yourself market. Smaller sales segments include residential and commercial construction, and hot water system manufacturers, which use some Reliance products in manufacturing.
82GF Score

Get the complete analysis for RLLWF

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

$2.55
Price
$3.06
GF Value