Kumba Iron OreFRA:KUI -1.30%72 Interest Coverage is 17.45 as of Dec. 2025, which is 73% below its 10-year median of 65.72. GuruFocus rates FRA:KUI with a GF Score™ of 72/100 and a GF Value™ of €17.65 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 458 Steel companies, Kumba Iron Ore ranks better than 80.57% 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. Kumba Iron Ore's
Operating Income
for the
six
months ended in Dec. 2025 was €643 Mil. Kumba Iron Ore's Interest Expense for the
six
months ended in Dec. 2025 was €-37 Mil.
Kumba Iron Ore's interest coverage for the quarter that ended in Dec. 2025 was 17.45.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Kumba Iron Ore's Interest Coverage or its related term are showing as below:
FRA:KUI'
s Interest Coverage Range Over the Past 10 Years
Min: 28.27 Med: 65.72 Max: 210.76
Current: 28.27
FRA:KUI's Interest Coverage is ranked better than 80.57% of 458
companies
in the Steel industry
Industry Median: 4.445
vs FRA:KUI: 28.27
Kumba Iron Ore (FRA:KUI) 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 .
Kumba Iron Ore Interest Coverage Related Terms
Kumba Iron Ore Interest Coverage Historical Data
* Premium members only.
The historical data trend for Kumba Iron Ore'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.
FRA:KUI vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Kumba Iron Ore'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.
Kumba Iron Ore Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Kumba Iron Ore's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Kumba Iron Ore'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.
Kumba Iron Ore (FRA:KUI) has a Interest Coverage of 17.45 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Kumba Iron Ore and its competitors. This is 73% below median its historical median of 65.72. Over the past decade, Kumba Iron Ore's Interest Coverage has ranged from 28.27 to 210.76. According to the industry distribution chart, Kumba Iron Ore ranks #89 out of 458 companies in the Steel industry, placing it in the top 19.4%.
Is Kumba Iron Ore's Interest Coverage too high?
Kumba Iron Ore's current Interest Coverage of 17.45 is 73% below median its 10-year median of 65.72. Over the past 10 years, this metric has ranged from a low of 28.27 to a high of 210.76. The Steel industry median Interest Coverage is 4.45. Kumba Iron Ore's value of 17.45 is 292.6% above this industry median. Based on the distribution chart, Kumba Iron Ore ranks #89 out of 458 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Kumba Iron Ore has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kumba Iron Ore's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Kumba Iron Ore ranks #89 out of 458 companies for Interest Coverage. This places Kumba Iron Ore in the top 19% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 4.45. Kumba Iron Ore's value of 17.45 is 292.6% above this benchmark. Historically, Kumba Iron Ore's own Interest Coverage has ranged from 28.27 to 210.76 over the past decade. While the company's 10-year median is 65.72 vs. the industry median of 4.45, Kumba Iron Ore 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 4.45, based on 458 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. Kumba Iron Ore's current Interest Coverage of 17.45 is 292.6% 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 Kumba Iron Ore and its competitors. For the Steel industry, the median Interest Coverage is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kumba Iron Ore's current Interest Coverage is 17.45, which is 73% below median its own 10-year median of 65.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kumba Iron Ore stock overvalued right now?
Based on GuruFocus' analysis, Kumba Iron Ore (FRA:KUI) is currently considered Modestly Undervalued. The stock's GF Value™ is €17.65, compared to a current price of €15.20 — trading 13.9% below its estimated fair value. The current Interest Coverage is 17.45, which is 73% below median its 10-year median of 65.72 and 292.6% above the Steel industry median of 4.45. Kumba Iron Ore's overall GF Score™ is 72/100 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 Kumba Iron Ore (FRA:KUI), the current Interest Coverage is 17.45 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 Kumba Iron Ore (FRA:KUI) Overvalued in 2026?
Based on GuruFocus' analysis, Kumba Iron Ore stock appears to be undervalued.
The current stock price of €15.20 is trading 13.9% below its estimated GF Value™ of €17.65.
GuruFocus considers Kumba Iron Ore to be Modestly Undervalued.
Key valuation signals for FRA:KUI:
Interest Coverage: 17.45 (73% below median its 10-year median of 65.72)
GF Value™: €17.65 vs. price of €15.20 (13.9% below fair value)
Industry Position: 292.6% above the Steel median (#89 of 458)
No single metric tells the full story. See the FRA:KUI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kumba Iron Ore Ltd is engaged in the exploration, mining, processing, blending, and sale of iron ore to the steel industry. The company operates in South Africa, with mining operations in the Northern Cape and Limpopo provinces, as well as a head office in Centurion, Gauteng, and a port operation in Saldanha Bay, Western Cape. The company's flagship asset is the Sishen mine, which it holds a majority stake in, located near the town of Kathu in the Northern Cape Province. The Sishen mine is opencast and produces the bulk of the group's iron ore, which is exported. It also holds an interest in the Kolomela mine. The company also generates revenue from Shipping operations. The majority of the company's revenue is generated from its products.
72GF Score
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