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TerexTEX +1.38%92 Interest Coverage is 3.74 as of Jun. 2026, which is 21% below its 10-year median of 4.74. GuruFocus rates TEX with a GF Score™ of 92/100 and a GF Value™ of $54.64 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 169 Farm & Heavy Construction Machinery companies, Terex ranks worse than 86.39% 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. Terex's
Operating Income
for the
three
months ended in Jun. 2026 was $187 Mil. Terex's Interest Expense for the
three
months ended in Jun. 2026 was $-50 Mil.
Terex's interest coverage for the quarter that ended in Jun. 2026 was 3.74.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Terex's Interest Coverage or its related term are showing as below:
TEX'
s Interest Coverage Range Over the Past 10 Years
Min: 0.34 Med: 4.74 Max: 10.11
Current: 2.04
TEX's Interest Coverage is ranked worse than 86.39% of 169
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.63
vs TEX: 2.04
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 .
Terex Interest Coverage Related Terms
Terex Interest Coverage Historical Data
* Premium members only.
The historical data trend for Terex'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.
TEX vs FSS, AGCO, OSK: Interest Coverage Comparison
For the Farm & Heavy Construction Machinery subindustry, Terex'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.
Terex Interest Coverage vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Terex's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Terex'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.
Terex (TEX) has a Interest Coverage of 3.74 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Terex and its competitors. This is 21% below median its historical median of 4.74. Over the past decade, Terex's Interest Coverage has ranged from 0.34 to 10.11. According to the industry distribution chart, Terex ranks #146 out of 169 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 86.4%.
Is Terex's Interest Coverage too high?
Terex's current Interest Coverage of 3.74 is 21% below median its 10-year median of 4.74. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 10.11. The Farm & Heavy Construction Machinery industry median Interest Coverage is 9.63. Terex's value of 3.74 is 61.2% below this industry median. Based on the distribution chart, Terex ranks #146 out of 169 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. Overall, Terex has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Terex's Interest Coverage compare to FSS and AGCO?
According to the Farm & Heavy Construction Machinery industry distribution chart, Terex ranks #146 out of 169 companies for Interest Coverage. This places Terex in the lower half of its industry. The industry median Interest Coverage is 9.63. Terex's value of 3.74 is 61.2% below this benchmark. Historically, Terex's own Interest Coverage has ranged from 0.34 to 10.11 over the past decade. While the company's 10-year median is 4.74 vs. the industry median of 9.63, Terex 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 Farm & Heavy Construction Machinery company?
The median Interest Coverage among Farm & Heavy Construction Machinery companies is 9.63, based on 169 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. Terex's current Interest Coverage of 3.74 is 61.2% 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 Terex and its competitors. For the Farm & Heavy Construction Machinery industry, the median Interest Coverage is 9.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Terex's current Interest Coverage is 3.74, which is 21% below median its own 10-year median of 4.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Terex stock overvalued right now?
Based on GuruFocus' analysis, Terex (TEX) is currently considered Modestly Overvalued. The stock's GF Value™ is $54.64, compared to a current price of $63.71 — trading 16.6% above its estimated fair value. The current Interest Coverage is 3.74, which is 21% below median its 10-year median of 4.74 and 61.2% below the Farm & Heavy Construction Machinery industry median of 9.63. Terex's overall GF Score™ is 92/100 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 Terex (TEX), the current Interest Coverage is 3.74 as of Jun. 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 Terex (TEX) Overvalued in 2026?
Based on GuruFocus' analysis, Terex stock appears to be overvalued.
The current stock price of $63.71 is trading 16.6% above its estimated GF Value™ of $54.64.
GuruFocus considers Terex to be Modestly Overvalued.
Key valuation signals for TEX:
Interest Coverage: 3.74 (21% below median its 10-year median of 4.74)
GF Value™: $54.64 vs. price of $63.71 (16.6% above fair value)
Industry Position: 61.2% below the Farm & Heavy Construction Machinery median (#146 of 169)
No single metric tells the full story. See the TEX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Terex is a global manufacturer of aerial work platforms, materials processing equipment, and specialty equipment for the waste, recycling, and utility industries. Its current composition is a result of numerous acquisitions over several decades to focus on a smaller group of light construction and other vocational equipment, having divested a handful of underperforming businesses, particularly in cranes and other lifting equipment. These remaining segments see heavy demand in nonresidential construction (aerial work platforms—40% sales), aggregates/mining (materials processing—30% sales), environmental, waste/recycling and utilities (environmental solutions group—30% sales).
92GF Score
Get the complete analysis for TEX
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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