RelianceMEX:RS 88 Interest Coverage is 23.89 as of Mar. 2026, which is 283% above its 10-year median of 6.24. GuruFocus rates MEX:RS with a GF Score™ of 88/100 and a GF Value™ of MXN4,789.44. The stock has 9 warning signs investors should review. Among 458 Steel companies, Reliance ranks better than 58.3% 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. Reliance's
Operating Income
for the
three
months ended in Mar. 2026 was MXN6,634 Mil. Reliance's Interest Expense for the
three
months ended in Mar. 2026 was MXN-278 Mil.
Reliance's interest coverage for the quarter that ended in Mar. 2026 was 23.89.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Reliance's Interest Coverage or its related term are showing as below:
MEX:RS'
s Interest Coverage Range Over the Past 10 Years
Min: 3.81 Med: 6.24 Max: 16.19
Current: 6.5
MEX:RS's Interest Coverage is ranked better than 58.3% of 458
companies
in the Steel industry
Industry Median: 4.445
vs MEX:RS: 6.50
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 .
Reliance Interest Coverage Related Terms
Reliance Interest Coverage Historical Data
* Premium members only.
The historical data trend for Reliance'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.
MEX:RS vs TX, CLF, WS: Interest Coverage Comparison
For the Steel subindustry, Reliance'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.
Reliance Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Reliance's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Reliance'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.
Reliance (MEX:RS) has a Interest Coverage of 23.89 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Reliance and its competitors. This is 283% above median its historical median of 6.24. Over the past decade, Reliance's Interest Coverage has ranged from 3.81 to 16.19. According to the industry distribution chart, Reliance ranks #191 out of 458 companies in the Steel industry, placing it in the top 41.7%.
Is Reliance's Interest Coverage too high?
Reliance's current Interest Coverage of 23.89 is 283% above median its 10-year median of 6.24. Over the past 10 years, this metric has ranged from a low of 3.81 to a high of 16.19. The Steel industry median Interest Coverage is 4.45. Reliance's value of 23.89 is 437.5% above this industry median. Based on the distribution chart, Reliance ranks #191 out of 458 companies in the Steel industry, which is above the industry midpoint. Overall, Reliance has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does Reliance's Interest Coverage compare to TX and CLF?
According to the Steel industry distribution chart, Reliance ranks #191 out of 458 companies for Interest Coverage. This puts Reliance in the upper half of its industry. The industry median Interest Coverage is 4.45. Reliance's value of 23.89 is 437.5% above this benchmark. Historically, Reliance's own Interest Coverage has ranged from 3.81 to 16.19 over the past decade. While the company's 10-year median is 6.24 vs. the industry median of 4.45, Reliance 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. Reliance's current Interest Coverage of 23.89 is 437.5% 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 Reliance 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. Reliance's current Interest Coverage is 23.89, which is 283% above median its own 10-year median of 6.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reliance stock overvalued right now?
Reliance (MEX:RS) has a current Interest Coverage of 23.89. The stock's GF Value™ is MXN4,789.44, compared to a current price of MXN5,529.80 — trading 15.5% above its estimated fair value. The current Interest Coverage is 23.89, which is 283% above median its 10-year median of 6.24 and 437.5% above the Steel industry median of 4.45. Reliance's overall GF Score™ is 88/100 with 9 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 Reliance (MEX:RS), the current Interest Coverage is 23.89 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 Reliance (MEX:RS) Overvalued in 2026?
Based on GuruFocus' analysis, Reliance stock appears to be overvalued.
The current stock price of MXN5,529.80 is trading 15.5% above its estimated GF Value™ of MXN4,789.44.
Key valuation signals for MEX:RS:
Interest Coverage: 23.89 (283% above median its 10-year median of 6.24)
GF Value™: MXN4,789.44 vs. price of MXN5,529.80 (15.5% above fair value)
Industry Position: 437.5% above the Steel median (#191 of 458)
No single metric tells the full story. See the MEX:RS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reliance Inc operates a network of companies providing diversified metal solutions and is the metals service center company. It distributes a full line of over 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium and other specialty steel products. The company services more than 125,000 customers in a variety of industries, including consumer products, general manufacturing, non-residential construction, transportation, aerospace, energy, electronics and semiconductor fabrication, industrial machinery and heavy industry. It also services the auto industry, through its toll processing operations where it processes customer-owned metal for a fee.
88GF Score
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