Nexa Resources (FRA:NE0) Interest Coverage: 3.35 (As of Jun. 2026) — 43% Above Median

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FRA:NE0 Nexa Resources SA FRA:NE0
64 GF Score
Price €11.50
GF Value €7.48
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Nexa Resources Interest Coverage?

Nexa Resources FRA:NE0 -0.86% 64 Interest Coverage is 3.35 as of Jun. 2026, which is 43% above its 10-year median of 2.34. GuruFocus rates FRA:NE0 with a GF Score™ of 64/100 and a GF Value™ of €7.48 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,347 Metals & Mining companies, Nexa Resources ranks worse than 94.8% 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. Nexa Resources's Operating Income for the three months ended in Jun. 2026 was €168 Mil. Nexa Resources's Interest Expense for the three months ended in Jun. 2026 was €-50 Mil. Nexa Resources's interest coverage for the quarter that ended in Jun. 2026 was 3.35. The higher the ratio, the stronger the company's financial strength is.

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

FRA:NE0' s Interest Coverage Range Over the Past 10 Years
Min: 0.5   Med: 2.34   Max: 5.92
Current: 2.58


FRA:NE0's Interest Coverage is ranked worse than
94.8% of 1347 companies
in the Metals & Mining industry
Industry Median: No Debt vs FRA:NE0: 2.58

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


Nexa Resources  (FRA:NE0) 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 .


Nexa Resources Interest Coverage Related Terms


Nexa Resources Interest Coverage Historical Data

* Premium members only.

The historical data trend for Nexa Resources'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.

Nexa Resources Interest Coverage Chart

Nexa Resources 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 3.70 2.97 0.50 1.67 1.71

Nexa Resources Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 1.48 1.21 2.31 4.28 3.35

FRA:NE0 vs EMAT, TMC, IMC: Interest Coverage Comparison

For the Other Industrial Metals & Mining subindustry, Nexa Resources'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.


Nexa Resources Interest Coverage vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Nexa Resources's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Nexa Resources's Interest Coverage falls into.


FRA:NE0
64GF Score
Nexa Resources SA FRA:NE0
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Nexa Resources 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.

Nexa Resources'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, Nexa Resources's Interest Expense was €-242 Mil. Its Operating Income was €415 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,474 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*414.68/-242.132
=1.71

Nexa Resources's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, Nexa Resources's Interest Expense was €-50 Mil. Its Operating Income was €168 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,487 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*167.555/-49.972
=3.35

* 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 3.35 mean?
Nexa Resources (FRA:NE0) has a Interest Coverage of 3.35 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nexa Resources and its competitors. This is 43% above median its historical median of 2.34. Over the past decade, Nexa Resources' Interest Coverage has ranged from 0.50 to 5.92. According to the industry distribution chart, Nexa Resources ranks #1277 out of 1347 companies in the Metals & Mining industry, placing it in the top 94.8%.
Is Nexa Resources' Interest Coverage too high?
Nexa Resources' current Interest Coverage of 3.35 is 43% above median its 10-year median of 2.34. Over the past 10 years, this metric has ranged from a low of 0.50 to a high of 5.92. The Metals & Mining industry median Interest Coverage is 10,000.00. Nexa Resources' value of 3.35 is 100% below this industry median. Based on the distribution chart, Nexa Resources ranks #1277 out of 1347 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Nexa Resources has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nexa Resources' Interest Coverage compare to EMAT and TMC?
According to the Metals & Mining industry distribution chart, Nexa Resources ranks #1277 out of 1347 companies for Interest Coverage. This places Nexa Resources in the lower half of its industry. The industry median Interest Coverage is 10,000.00. Nexa Resources' value of 3.35 is 100% below this benchmark. Historically, Nexa Resources' own Interest Coverage has ranged from 0.50 to 5.92 over the past decade. While the company's 10-year median is 2.34 vs. the industry median of 10,000.00, Nexa Resources has consistently been below 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 Metals & Mining company?
The median Interest Coverage among Metals & Mining companies is 10,000.00, based on 1,347 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. Nexa Resources's current Interest Coverage of 3.35 is 100% 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 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 Nexa Resources and its competitors. For the Metals & Mining industry, the median Interest Coverage is 10,000.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nexa Resources's current Interest Coverage is 3.35, which is 43% above median its own 10-year median of 2.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nexa Resources stock overvalued right now?
Based on GuruFocus' analysis, Nexa Resources (FRA:NE0) is currently considered Significantly Overvalued. The stock's GF Value™ is €7.48, compared to a current price of €11.50 — trading 53.7% above its estimated fair value. The current Interest Coverage is 3.35, which is 43% above median its 10-year median of 2.34 and 100% below the Metals & Mining industry median of 10,000.00. Nexa Resources' overall GF Score™ is 64/100 with 1 warning sign 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 Nexa Resources (FRA:NE0), the current Interest Coverage is 3.35 as of Jun. 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 Nexa Resources (FRA:NE0) Overvalued in 2026?

Based on GuruFocus' analysis, Nexa Resources stock appears to be overvalued. The current stock price of €11.50 is trading 53.7% above its estimated GF Value™ of €7.48. GuruFocus considers Nexa Resources to be Significantly Overvalued.

Key valuation signals for FRA:NE0:

  • Interest Coverage: 3.35 (43% above median its 10-year median of 2.34)
  • GF Value™: €7.48 vs. price of €11.50 (53.7% above fair value)
  • GF Score™: 64/100 with 1 warning sign
  • Industry Position: 100% below the Metals & Mining median (#1277 of 1347)

No single metric tells the full story. See the FRA:NE0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nexa Resources Business Description

Other Exchanges NEXA:USANE0:Germany
Address 37A, Avenue J.F. Kennedy, Luxembourg, LUX, L-1855
Nexa Resources SA operate large-scale, mechanized underground and open pit mines, as well as smelters. The company operates through two segments namely Mining and Smelting. Its Mining segment consists of various operating units includes mineral exploration activities and the production of zinc concentrates, copper concentrates and concentrates. The Smelting segment comprises operating units which include facilities recovering and refining zinc metal out of feed materials such as zinc concentrates or secondary feed materials. It generates maximum revenue from the Smelting segment. Geographically It has a presence in Brazil, Peru, the United States of America, Switzerland, Japan, Argentina, South Korea, Colombia, Vietnam, Malaysia and other countries.
64GF Score

Get the complete analysis for FRA:NE0

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

€11.50
Price
€7.48
GF Value