Kobe SteelKBSTF -7.05%74 Interest Coverage is 10.34 as of Mar. 2026, which is 58% above its 10-year median of 6.55. GuruFocus rates KBSTF with a GF Score™ of 74/100 and a GF Value™ of $10.59 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 459 Steel companies, Kobe Steel ranks better than 65.36% 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. Kobe Steel's
Operating Income
for the
three
months ended in Mar. 2026 was $223 Mil. Kobe Steel's Interest Expense for the
three
months ended in Mar. 2026 was $-22 Mil.
Kobe Steel's interest coverage for the quarter that ended in Mar. 2026 was 10.34.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Kobe Steel's Interest Coverage or its related term are showing as below:
KBSTF'
s Interest Coverage Range Over the Past 10 Years
Min: 0.73 Med: 6.55 Max: 12.75
Current: 9.69
KBSTF's Interest Coverage is ranked better than 65.36% of 459
companies
in the Steel industry
Industry Median: 4.48
vs KBSTF: 9.69
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 .
Kobe Steel Interest Coverage Related Terms
Kobe Steel Interest Coverage Historical Data
* Premium members only.
The historical data trend for Kobe Steel'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.
KBSTF vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Kobe Steel'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.
Kobe Steel Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Kobe Steel's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Kobe Steel'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.
Kobe Steel (KBSTF) has a Interest Coverage of 10.34 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Kobe Steel and its competitors. This is 58% above median its historical median of 6.55. Over the past decade, Kobe Steel's Interest Coverage has ranged from 0.73 to 12.75. According to the industry distribution chart, Kobe Steel ranks #159 out of 459 companies in the Steel industry, placing it in the top 34.6%.
Is Kobe Steel's Interest Coverage too high?
Kobe Steel's current Interest Coverage of 10.34 is 58% above median its 10-year median of 6.55. Over the past 10 years, this metric has ranged from a low of 0.73 to a high of 12.75. The Steel industry median Interest Coverage is 4.48. Kobe Steel's value of 10.34 is 130.8% above this industry median. Based on the distribution chart, Kobe Steel ranks #159 out of 459 companies in the Steel industry, which is above the industry midpoint. Overall, Kobe Steel has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kobe Steel's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Kobe Steel ranks #159 out of 459 companies for Interest Coverage. This puts Kobe Steel in the upper half of its industry. The industry median Interest Coverage is 4.48. Kobe Steel's value of 10.34 is 130.8% above this benchmark. Historically, Kobe Steel's own Interest Coverage has ranged from 0.73 to 12.75 over the past decade. While the company's 10-year median is 6.55 vs. the industry median of 4.48, Kobe Steel 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. Kobe Steel's current Interest Coverage of 10.34 is 130.8% 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 Kobe Steel 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. Kobe Steel's current Interest Coverage is 10.34, which is 58% above median its own 10-year median of 6.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kobe Steel stock overvalued right now?
Based on GuruFocus' analysis, Kobe Steel (KBSTF) is currently considered Modestly Overvalued. The stock's GF Value™ is $10.59, compared to a current price of $12.32 — trading 16.3% above its estimated fair value. The current Interest Coverage is 10.34, which is 58% above median its 10-year median of 6.55 and 130.8% above the Steel industry median of 4.48. Kobe Steel's overall GF Score™ is 74/100 with 3 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 Kobe Steel (KBSTF), the current Interest Coverage is 10.34 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 Kobe Steel (KBSTF) Overvalued in 2026?
Based on GuruFocus' analysis, Kobe Steel stock appears to be overvalued.
The current stock price of $12.32 is trading 16.3% above its estimated GF Value™ of $10.59.
GuruFocus considers Kobe Steel to be Modestly Overvalued.
Key valuation signals for KBSTF:
Interest Coverage: 10.34 (58% above median its 10-year median of 6.55)
GF Value™: $10.59 vs. price of $12.32 (16.3% above fair value)
Industry Position: 130.8% above the Steel median (#159 of 459)
No single metric tells the full story. See the KBSTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kobe Steel Ltd engages in the manufacture, production, and sale of iron and steel. The company operates through seven segments. The Construction Machinery segment offers excavators, cranes, loaders, and workboats. Electric Power supplies electricity through group companies. Engineering handles plants for steel, petrochemicals, nuclear, water, and waste treatment, along with civil engineering and transport systems. Machinery provides compressors, engines, refrigeration, heat pumps, chemical and rubber machinery, and specialty materials. Materials include steel, aluminum, titanium, copper, and forged products. Steel & Aluminum delivers rolled products, plates, wires, and special steels, while Welding covers electrodes, flux, robots, power sources, and related services.
74GF Score
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