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. EZZ Steel CoE's
Operating Income
for the
three
months ended in Jun. 2024 was £94.20 Mil. EZZ Steel CoE's Interest Expense for the
three
months ended in Jun. 2024 was £-60.76 Mil.
EZZ Steel CoE's interest coverage for the quarter that ended in Jun. 2024 was 1.55.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. EZZ Steel Co SAE interest coverage is 3.15, which is low.
The historical rank and industry rank for EZZ Steel CoE's Interest Coverage or its related term are showing as below:
LSE:67NW'
s Interest Coverage Range Over the Past 10 Years
Min: 0.28 Med: 0.91 Max: 5.43
Current: 3.15
LSE:67NW's Interest Coverage is not ranked
in the Steel industry.
Industry Median: 4.445
vs LSE:67NW: 3.15
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 .
EZZ Steel CoE Interest Coverage Related Terms
EZZ Steel CoE Interest Coverage Historical Data
* Premium members only.
The historical data trend for EZZ Steel CoE'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.
LSE:67NW vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, EZZ Steel CoE'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.
EZZ Steel CoE Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, EZZ Steel CoE's Interest Coverage distribution charts can be found below:
* The bar in red indicates where EZZ Steel CoE'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.
EZZ Steel CoE (LSE:67NW) has a Interest Coverage of 1.55 as of Jun. 2024. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on EZZ Steel CoE and its competitors. This is 70% above median its historical median of 0.91. Over the past decade, EZZ Steel CoE's Interest Coverage has ranged from 0.28 to 5.43.
Is EZZ Steel CoE's Interest Coverage too high?
EZZ Steel CoE's current Interest Coverage of 1.55 is 70% above median its 10-year median of 0.91. Over the past 10 years, this metric has ranged from a low of 0.28 to a high of 5.43. The Steel industry median Interest Coverage is 4.45. EZZ Steel CoE's value of 1.55 is 65.1% below this industry median. Overall, EZZ Steel CoE has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does EZZ Steel CoE's Interest Coverage compare to NUE and STLD?
EZZ Steel CoE's Interest Coverage of 1.55 can be compared against companies in the Steel industry. The industry median Interest Coverage is 4.45. EZZ Steel CoE's value of 1.55 is 65.1% below this benchmark. Historically, EZZ Steel CoE's own Interest Coverage has ranged from 0.28 to 5.43 over the past decade. While the company's 10-year median is 0.91 vs. the industry median of 4.45, EZZ Steel CoE 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 Steel company?
The median Interest Coverage among Steel companies is 4.45, based on 456 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. EZZ Steel CoE's current Interest Coverage of 1.55 is 65.1% 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 EZZ Steel CoE 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. EZZ Steel CoE's current Interest Coverage is 1.55, which is 70% above median its own 10-year median of 0.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EZZ Steel CoE stock overvalued right now?
EZZ Steel CoE (LSE:67NW) has a current Interest Coverage of 1.55. The current Interest Coverage is 1.55, which is 70% above median its 10-year median of 0.91 and 65.1% below the Steel industry median of 4.45. EZZ Steel CoE's overall GF Score™ is 4/100 with 7 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 EZZ Steel CoE (LSE:67NW), the current Interest Coverage is 1.55 as of Jun. 2024. 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.
EZZ Steel Co SAE is an Egypt-based company that manufactures and distributes long and flat steel products. The company's long products, including rebar and wire rod, are employed in applications including concrete reinforcement bars, nails, bolts, tacks, welding tools, electrical components, wire mesh, and others. The company's flat products are applied in automotive components, suspension parts, wheels, containers, gas cylinders, and others.
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