Champion Iron (ASX:CIA) Interest Coverage: 4.90 (As of Mar. 2026) — 64% Below Median


ASX:CIA Champion Iron Ltd ASX:CIA
84 GF Score
Price A$3.88
GF Value A$6.15
Valuation Significantly Undervalued
! 6 Warning Signs
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What is Champion Iron Interest Coverage?

Champion Iron ASX:CIA +1.04% 84 Interest Coverage is 4.90 as of Mar. 2026, which is 64% below its 10-year median of 13.43. GuruFocus rates ASX:CIA with a GF Score™ of 84/100 and a GF Value™ of A$6.15 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 459 Steel companies, Champion Iron ranks better than 60.57% 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. Champion Iron's Operating Income for the three months ended in Mar. 2026 was A$59 Mil. Champion Iron's Interest Expense for the three months ended in Mar. 2026 was A$-12 Mil. Champion Iron's interest coverage for the quarter that ended in Mar. 2026 was 4.90. The higher the ratio, the stronger the company's financial strength is.

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

ASX:CIA' s Interest Coverage Range Over the Past 10 Years
Min: 7.23   Med: 13.43   Max: 568.99
Current: 7.23


ASX:CIA's Interest Coverage is ranked better than
60.57% of 459 companies
in the Steel industry
Industry Median: 4.48 vs ASX:CIA: 7.23

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


Champion Iron  (ASX:CIA) 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 .


Champion Iron Interest Coverage Related Terms


Champion Iron Interest Coverage Historical Data

* Premium members only.

The historical data trend for Champion Iron'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.

Champion Iron Interest Coverage Chart

Champion Iron Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 568.99 26.30 10.97 9.82 7.23

Champion Iron 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 10.42 1.30 10.73 9.79 4.90

ASX:CIA vs NUE, STLD, RS: Interest Coverage Comparison

For the Steel subindustry, Champion Iron'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.


Champion Iron Interest Coverage vs Steel Industry

For the Steel industry and Basic Materials sector, Champion Iron's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Champion Iron's Interest Coverage falls into.


ASX:CIA
84GF Score
Champion Iron Ltd ASX:CIA
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Champion Iron 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.

Champion Iron's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, Champion Iron's Interest Expense was A$-44 Mil. Its Operating Income was A$320 Mil. And its Long-Term Debt & Capital Lease Obligation was A$1,055 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*320.483/-44.356
=7.23

Champion Iron's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Champion Iron's Interest Expense was A$-12 Mil. Its Operating Income was A$59 Mil. And its Long-Term Debt & Capital Lease Obligation was A$1,055 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*58.667/-11.969
=4.90

* 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 4.90 mean?
Champion Iron (ASX:CIA) has a Interest Coverage of 4.90 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Champion Iron and its competitors. This is 64% below median its historical median of 13.43. Over the past decade, Champion Iron's Interest Coverage has ranged from 7.23 to 568.99. According to the industry distribution chart, Champion Iron ranks #181 out of 459 companies in the Steel industry, placing it in the top 39.4%.
Is Champion Iron's Interest Coverage too high?
Champion Iron's current Interest Coverage of 4.90 is 64% below median its 10-year median of 13.43. Over the past 10 years, this metric has ranged from a low of 7.23 to a high of 568.99. The Steel industry median Interest Coverage is 4.48. Champion Iron's value of 4.90 is 9.4% above this industry median. Based on the distribution chart, Champion Iron ranks #181 out of 459 companies in the Steel industry, which is above the industry midpoint. Overall, Champion Iron has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Champion Iron's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Champion Iron ranks #181 out of 459 companies for Interest Coverage. This puts Champion Iron in the upper half of its industry. The industry median Interest Coverage is 4.48. Champion Iron's value of 4.90 is 9.4% above this benchmark. Historically, Champion Iron's own Interest Coverage has ranged from 7.23 to 568.99 over the past decade. While the company's 10-year median is 13.43 vs. the industry median of 4.48, Champion Iron 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 Steel company?
The median Interest Coverage among Steel companies is 4.48, based on 459 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. Champion Iron's current Interest Coverage of 4.90 is 9.4% 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 Champion Iron and its competitors. For the Steel industry, the median Interest Coverage is 4.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Champion Iron's current Interest Coverage is 4.90, which is 64% below median its own 10-year median of 13.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Champion Iron stock overvalued right now?
Based on GuruFocus' analysis, Champion Iron (ASX:CIA) is currently considered Significantly Undervalued. The stock's GF Value™ is A$6.15, compared to a current price of A$3.88 — trading 36.9% below its estimated fair value. The current Interest Coverage is 4.90, which is 64% below median its 10-year median of 13.43 and 9.4% above the Steel industry median of 4.48. Champion Iron's overall GF Score™ is 84/100 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 Champion Iron (ASX:CIA), the current Interest Coverage is 4.90 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 Champion Iron (ASX:CIA) Overvalued in 2026?

Based on GuruFocus' analysis, Champion Iron stock appears to be undervalued. The current stock price of A$3.88 is trading 36.9% below its estimated GF Value™ of A$6.15. GuruFocus considers Champion Iron to be Significantly Undervalued.

Key valuation signals for ASX:CIA:

  • Interest Coverage: 4.90 (64% below median its 10-year median of 13.43)
  • GF Value™: A$6.15 vs. price of A$3.88 (36.9% below fair value)
  • GF Score™: 84/100 with 6 warning signs
  • Industry Position: 9.4% above the Steel median (#181 of 459)

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


Champion Iron Business Description

Address 91 Evans Street, Level 1, Rozelle, Sydney, NSW, AUS, 2039
Champion Iron Ltd is engaged in the exploration and development of iron ore properties in Quebec, Canada. The company projects include Fire Lake North, Powderhorn/Gullbridge, Moire, Quinto Claims, Harvey Tuttle, O'keefe-Purdy, and others. Its segment includes Iron Ore Concentrate, Exploration and Evaluation, and Corporate. The company generates the maximum of its revenue from the Iron Ore Concentrate segment.
84GF Score

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

A$3.88
Price
A$6.15
GF Value