Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Companhia Siderurgica Nacional's Degree of Financial Leverage for the quarter that ended in Mar. 2026 was 0.92. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Companhia Siderurgica Nacional's Degree of Financial Leverage or its related term are showing as below:
SID's Degree of Financial Leverage is ranked better than 57.03% of 626
companies
in the Steel industry
Industry Median: 1
vs SID: 0.92
Companhia Siderurgica Nacional (NYSE:SID) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
Companhia Siderurgica Nacional Degree of Financial Leverage Related Terms
Companhia Siderurgica Nacional Degree of Financial Leverage Historical Data
* 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.
Companhia Siderurgica Nacional Degree of Financial Leverage Chart
SID vs NUE, STLD, RS: Degree of Financial Leverage Comparison
For the Steel subindustry, Companhia Siderurgica Nacional's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage 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.
Companhia Siderurgica Nacional Degree of Financial Leverage vs Steel Industry
For the Steel industry and Basic Materials sector, Companhia Siderurgica Nacional's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Companhia Siderurgica Nacional's Degree of Financial Leverage falls into.
* 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.
** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Financial Leverage of 0.92 mean?
Companhia Siderurgica Nacional (SID) has a Degree of Financial Leverage of 0.92 as of Mar. 2026. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Companhia Siderurgica Nacional and its competitors. According to the industry distribution chart, Companhia Siderurgica Nacional ranks #269 out of 626 companies in the Steel industry, placing it in the top 43%.
Is Companhia Siderurgica Nacional's Degree of Financial Leverage too high?
Companhia Siderurgica Nacional's current Degree of Financial Leverage is 0.92. The Steel industry median Degree of Financial Leverage is 1.00. Companhia Siderurgica Nacional's value of 0.92 is 8% below this industry median. Based on the distribution chart, Companhia Siderurgica Nacional ranks #269 out of 626 companies in the Steel industry, which is above the industry midpoint. Overall, Companhia Siderurgica Nacional has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Companhia Siderurgica Nacional's Degree of Financial Leverage compare to NUE and STLD?
According to the Steel industry distribution chart, Companhia Siderurgica Nacional ranks #269 out of 626 companies for Degree of Financial Leverage. This puts Companhia Siderurgica Nacional in the upper half of its industry. The industry median Degree of Financial Leverage is 1.00. Companhia Siderurgica Nacional's value of 0.92 is 8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for a Steel company?
The median Degree of Financial Leverage among Steel companies is 1.00, based on 626 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Companhia Siderurgica Nacional's current Degree of Financial Leverage of 0.92 is 8% 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 Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Companhia Siderurgica Nacional and its competitors. For the Steel industry, the median Degree of Financial Leverage is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Companhia Siderurgica Nacional's current Degree of Financial Leverage is 0.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Companhia Siderurgica Nacional stock overvalued right now?
Based on GuruFocus' analysis, Companhia Siderurgica Nacional (SID) is currently considered Possible Value Trap. The stock's GF Value™ is $2.24, compared to a current price of $1.00 — trading 55.4% below its estimated fair value. The current Degree of Financial Leverage is 0.92 and 8% below the Steel industry median of 1.00. Companhia Siderurgica Nacional's overall GF Score™ is 63/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Companhia Siderurgica Nacional (SID), the current Degree of Financial Leverage is 0.92 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 Companhia Siderurgica Nacional (SID) Overvalued in 2026?
Based on GuruFocus' analysis, Companhia Siderurgica Nacional stock appears to be undervalued.
The current stock price of $1.00 is trading 55.4% below its estimated GF Value™ of $2.24.
GuruFocus considers Companhia Siderurgica Nacional to be Possible Value Trap.
Key valuation signals for SID:
Degree of Financial Leverage: 0.92
GF Value™: $2.24 vs. price of $1.00 (55.4% below fair value)
Industry Position: 8% below the Steel median (#269 of 626)
No single metric tells the full story. See the SID stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Companhia Siderurgica Nacional Business Description
Companhia Siderurgica Nacional is an integrated steel producer. together with its subsidiaries operates in five main business segments: Steel industry: production and marketing of flat and long steels; Mining: extraction, processing and marketing of iron ore, tin, limestone and dolomite; Cement: production and commercialization of bagged and bulk cement, in addition to aggregates, concrete, and other related products; Energy: generation and sale of energy from almost all renewable sources; and Logistics: participations port concessions and fleets of road transport vehicles. The group generates the majority of its revenue from the Steel industry segment. Geographically, it derives a majority of revenue from Asia.
63GF Score
Get the complete analysis for SID
Degree of Financial Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SID has been successfully added to your 
