Johnson Controls International (XTER:TYIA) Interest Coverage: 14.35 (As of Mar. 2026) — 111% Above Median


XTER:TYIA Johnson Controls International PLC XTER:TYIA
69 GF Score
Price €127.75
GF Value €88.59
Valuation Significantly Overvalued
! 7 Warning Signs
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What is Johnson Controls International Interest Coverage?

Johnson Controls International XTER:TYIA 69 Interest Coverage is 14.35 as of Mar. 2026, which is 111% above its 10-year median of 6.81. GuruFocus rates XTER:TYIA with a GF Score™ of 69/100 and a GF Value™ of €88.59 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,354 Construction companies, Johnson Controls International ranks better than 64.84% 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. Johnson Controls International's Operating Income for the three months ended in Mar. 2026 was €745 Mil. Johnson Controls International's Interest Expense for the three months ended in Mar. 2026 was €-52 Mil. Johnson Controls International's interest coverage for the quarter that ended in Mar. 2026 was 14.35. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Johnson Controls International's Interest Coverage or its related term are showing as below:

XTER:TYIA' s Interest Coverage Range Over the Past 10 Years
Min: 4.05   Med: 6.81   Max: 16.37
Current: 16.37


XTER:TYIA's Interest Coverage is ranked better than
64.84% of 1354 companies
in the Construction industry
Industry Median: 7.865 vs XTER:TYIA: 16.37

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


Johnson Controls International  (XTER:TYIA) 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 .


Johnson Controls International Interest Coverage Related Terms


Johnson Controls International Interest Coverage Historical Data

* Premium members only.

The historical data trend for Johnson Controls International'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.

Johnson Controls International Interest Coverage Chart

Johnson Controls International Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.60 9.10 9.37 6.34 12.46

Johnson Controls International 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 11.46 15.07 16.94 20.31 14.35

XTER:TYIA vs TT, CARR, MAIR: Interest Coverage Comparison

For the Building Products & Equipment subindustry, Johnson Controls International'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.


Johnson Controls International Interest Coverage vs Construction Industry

For the Construction industry and Industrials sector, Johnson Controls International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Johnson Controls International's Interest Coverage falls into.


XTER:TYIA
69GF Score
Johnson Controls International PLC XTER:TYIA
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Johnson Controls International 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.

Johnson Controls International's Interest Coverage for the fiscal year that ended in Sep. 2025 is calculated as

Here, for the fiscal year that ended in Sep. 2025, Johnson Controls International's Interest Expense was €-193 Mil. Its Operating Income was €2,409 Mil. And its Long-Term Debt & Capital Lease Obligation was €7,320 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2025 )/Interest Expense (A: Sep. 2025 )
=-1*2409.456/-193.404
=12.46

Johnson Controls International's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Johnson Controls International's Interest Expense was €-52 Mil. Its Operating Income was €745 Mil. And its Long-Term Debt & Capital Lease Obligation was €7,450 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*744.765/-51.9
=14.35

* 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 14.35 mean?
Johnson Controls International (XTER:TYIA) has a Interest Coverage of 14.35 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Johnson Controls International and its competitors. This is 111% above median its historical median of 6.81. Over the past decade, Johnson Controls International's Interest Coverage has ranged from 4.05 to 16.37. According to the industry distribution chart, Johnson Controls International ranks #476 out of 1354 companies in the Construction industry, placing it in the top 35.2%.
Is Johnson Controls International's Interest Coverage too high?
Johnson Controls International's current Interest Coverage of 14.35 is 111% above median its 10-year median of 6.81. Over the past 10 years, this metric has ranged from a low of 4.05 to a high of 16.37. The Construction industry median Interest Coverage is 7.87. Johnson Controls International's value of 14.35 is 82.5% above this industry median. Based on the distribution chart, Johnson Controls International ranks #476 out of 1354 companies in the Construction industry, which is above the industry midpoint. Overall, Johnson Controls International has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Johnson Controls International's Interest Coverage compare to TT and CARR?
According to the Construction industry distribution chart, Johnson Controls International ranks #476 out of 1354 companies for Interest Coverage. This puts Johnson Controls International in the upper half of its industry. The industry median Interest Coverage is 7.87. Johnson Controls International's value of 14.35 is 82.5% above this benchmark. Historically, Johnson Controls International's own Interest Coverage has ranged from 4.05 to 16.37 over the past decade. While the company's 10-year median is 6.81 vs. the industry median of 7.87, Johnson Controls International 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. Johnson Controls International's current Interest Coverage of 14.35 is 82.5% 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 Johnson Controls International 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. Johnson Controls International's current Interest Coverage is 14.35, which is 111% above median its own 10-year median of 6.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Johnson Controls International stock overvalued right now?
Based on GuruFocus' analysis, Johnson Controls International (XTER:TYIA) is currently considered Significantly Overvalued. The stock's GF Value™ is €88.59, compared to a current price of €127.75 — trading 44.2% above its estimated fair value. The current Interest Coverage is 14.35, which is 111% above median its 10-year median of 6.81 and 82.5% above the Construction industry median of 7.87. Johnson Controls International's overall GF Score™ is 69/100 with 7 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 Johnson Controls International (XTER:TYIA), the current Interest Coverage is 14.35 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 Johnson Controls International (XTER:TYIA) Overvalued in 2026?

Based on GuruFocus' analysis, Johnson Controls International stock appears to be overvalued. The current stock price of €127.75 is trading 44.2% above its estimated GF Value™ of €88.59. GuruFocus considers Johnson Controls International to be Significantly Overvalued.

Key valuation signals for XTER:TYIA:

  • Interest Coverage: 14.35 (111% above median its 10-year median of 6.81)
  • GF Value™: €88.59 vs. price of €127.75 (44.2% above fair value)
  • GF Score™: 69/100 with 7 warning signs
  • Industry Position: 82.5% above the Construction median (#476 of 1354)

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


Johnson Controls International Business Description

Address One Albert Quay, Cork, IRL, T12 X8N6
Following Johnson Controls' divestiture of its residential and light commercial HVAC businesses to Bosch in 2025, nearly all of its revenue comes from commercial HVAC (60%) and fire and security products and services (40%). A 2016 merger joined Johnson Controls' HVAC and Tyco's fire and security businesses with the premise that there is synergy in offering a broader variety of automation products and solutions to commercial buildings. We estimate Johnson Controls' pro forma revenue mix will be one-third products, one-third installation, and one-third services.
69GF Score

Get the complete analysis for XTER:TYIA

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

€127.75
Price
€88.59
GF Value