Nexteer Automotive Group (FRA:8NX) Interest Coverage: 45.13 (As of Dec. 2025) — 47% Above Median


FRA:8NX Nexteer Automotive Group Ltd FRA:8NX
59 GF Score
Price €0.42
GF Value €0.57
Valuation Modestly Undervalued
! 4 Warning Signs
View Full Analysis

What is Nexteer Automotive Group Interest Coverage?

Nexteer Automotive Group FRA:8NX +1.94% 59 Interest Coverage is 45.13 as of Dec. 2025, which is 47% above its 10-year median of 30.76. GuruFocus rates FRA:8NX with a GF Score™ of 59/100 and a GF Value™ of €0.57 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,067 Vehicles & Parts companies, Nexteer Automotive Group ranks better than 84.07% 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. Nexteer Automotive Group's Operating Income for the six months ended in Dec. 2025 was €55 Mil. Nexteer Automotive Group's Interest Expense for the six months ended in Dec. 2025 was €-1 Mil. Nexteer Automotive Group's interest coverage for the quarter that ended in Dec. 2025 was 45.13. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Nexteer Automotive Group Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Nexteer Automotive Group's Interest Coverage or its related term are showing as below:

FRA:8NX' s Interest Coverage Range Over the Past 10 Years
Min: 16.89   Med: 30.76   Max: 73.5
Current: 64.66


FRA:8NX's Interest Coverage is ranked better than
84.07% of 1067 companies
in the Vehicles & Parts industry
Industry Median: 8.31 vs FRA:8NX: 64.66

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


Nexteer Automotive Group  (FRA:8NX) 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 .


Nexteer Automotive Group Interest Coverage Related Terms


Nexteer Automotive Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for Nexteer Automotive Group'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.

Nexteer Automotive Group Interest Coverage Chart

Nexteer Automotive Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.49 44.46 46.58 73.53 64.55

Nexteer Automotive Group Semi-Annual Data
Jun16 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 Premium Member Only 62.92 34.41 288.60 92.40 45.13

FRA:8NX vs ORLY, AZO: Interest Coverage Comparison

For the Auto Parts subindustry, Nexteer Automotive Group'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.


Nexteer Automotive Group Interest Coverage vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Nexteer Automotive Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Nexteer Automotive Group's Interest Coverage falls into.


FRA:8NX
59GF Score
Nexteer Automotive Group Ltd FRA:8NX
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Nexteer Automotive Group 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.

Nexteer Automotive Group's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Nexteer Automotive Group's Interest Expense was €-2 Mil. Its Operating Income was €133 Mil. And its Long-Term Debt & Capital Lease Obligation was €59 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*132.648/-2.055
=64.55

Nexteer Automotive Group's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Nexteer Automotive Group's Interest Expense was €-1 Mil. Its Operating Income was €55 Mil. And its Long-Term Debt & Capital Lease Obligation was €59 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*54.647/-1.211
=45.13

* 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 45.13 mean?
Nexteer Automotive Group (FRA:8NX) has a Interest Coverage of 45.13 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nexteer Automotive Group and its competitors. This is 47% above median its historical median of 30.76. Over the past decade, Nexteer Automotive Group's Interest Coverage has ranged from 16.89 to 73.50. According to the industry distribution chart, Nexteer Automotive Group ranks #170 out of 1067 companies in the Vehicles & Parts industry, placing it in the top 15.9%.
Is Nexteer Automotive Group's Interest Coverage too high?
Nexteer Automotive Group's current Interest Coverage of 45.13 is 47% above median its 10-year median of 30.76. Over the past 10 years, this metric has ranged from a low of 16.89 to a high of 73.50. The Vehicles & Parts industry median Interest Coverage is 8.31. Nexteer Automotive Group's value of 45.13 is 443.1% above this industry median. Based on the distribution chart, Nexteer Automotive Group ranks #170 out of 1067 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Nexteer Automotive Group has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nexteer Automotive Group's Interest Coverage compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Nexteer Automotive Group ranks #170 out of 1067 companies for Interest Coverage. This places Nexteer Automotive Group in the top 16% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.31. Nexteer Automotive Group's value of 45.13 is 443.1% above this benchmark. Historically, Nexteer Automotive Group's own Interest Coverage has ranged from 16.89 to 73.50 over the past decade. While the company's 10-year median is 30.76 vs. the industry median of 8.31, Nexteer Automotive Group 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.31, based on 1,067 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. Nexteer Automotive Group's current Interest Coverage of 45.13 is 443.1% 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 Nexteer Automotive Group and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nexteer Automotive Group's current Interest Coverage is 45.13, which is 47% above median its own 10-year median of 30.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nexteer Automotive Group stock overvalued right now?
Based on GuruFocus' analysis, Nexteer Automotive Group (FRA:8NX) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.57, compared to a current price of €0.42 — trading 26.3% below its estimated fair value. The current Interest Coverage is 45.13, which is 47% above median its 10-year median of 30.76 and 443.1% above the Vehicles & Parts industry median of 8.31. Nexteer Automotive Group's overall GF Score™ is 59/100 with 4 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 Nexteer Automotive Group (FRA:8NX), the current Interest Coverage is 45.13 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 Nexteer Automotive Group (FRA:8NX) Overvalued in 2026?

Based on GuruFocus' analysis, Nexteer Automotive Group stock appears to be undervalued. The current stock price of €0.42 is trading 26.3% below its estimated GF Value™ of €0.57. GuruFocus considers Nexteer Automotive Group to be Modestly Undervalued.

Key valuation signals for FRA:8NX:

  • Interest Coverage: 45.13 (47% above median its 10-year median of 30.76)
  • GF Value™: €0.57 vs. price of €0.42 (26.3% below fair value)
  • GF Score™: 59/100 with 4 warning signs
  • Industry Position: 443.1% above the Vehicles & Parts median (#170 of 1067)

No single metric tells the full story. See the FRA:8NX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nexteer Automotive Group Business Description

Other Exchanges NTXVF:USA01316:Hong Kong
Address 1272 Doris Road, Auburn Hills, MI, USA, 48326
Nexteer Automotive Group Ltd offers steering and driveline systems. The company designs, manufactures, and distributes steering and driveline systems and components, mainly for automotive OEMs. It continues to develop braking technology that will be instrumental to the software-defined chassis. The company's customers are automakers like BMW, Fiat Chrysler, Ford, GM, and Toyota, as well as automakers in India, South America, and China. The Group classifies its businesses into three reportable segments: North America, Asia Pacific, and Europe, the Middle East, Africa, and South America (EMEASA). All of the Group's operating segments typically offer the same steering and driveline products; the majority are derived from North America.
59GF Score

Get the complete analysis for FRA:8NX

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

€0.42
Price
€0.57
GF Value