Dangote CementNSA:DCP 100 Interest Coverage is 6.07 as of Mar. 2026, which is 4% below its 10-year median of 6.30. GuruFocus rates NSA:DCP with a GF Score™ of 100/100 and a GF Value™ of ₦807.00 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 307 Building Materials companies, Dangote Cement ranks worse than 53.42% 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. Dangote Cement's
Operating Income
for the
three
months ended in Mar. 2026 was ₦502,406 Mil. Dangote Cement's Interest Expense for the
three
months ended in Mar. 2026 was ₦-82,788 Mil.
Dangote Cement's interest coverage for the quarter that ended in Mar. 2026 was 6.07.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Dangote Cement's Interest Coverage or its related term are showing as below:
NSA:DCP'
s Interest Coverage Range Over the Past 10 Years
Min: 2.5 Med: 6.3 Max: 10.33
Current: 5.86
NSA:DCP's Interest Coverage is ranked worse than 53.42% of 307
companies
in the Building Materials industry
Industry Median: 6.63
vs NSA:DCP: 5.86
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 .
Dangote Cement Interest Coverage Related Terms
Dangote Cement Interest Coverage Historical Data
* Premium members only.
The historical data trend for Dangote Cement'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.
NSA:DCP vs CRH, VMC, MLM: Interest Coverage Comparison
For the Building Materials subindustry, Dangote Cement'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.
Dangote Cement Interest Coverage vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Dangote Cement's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Dangote Cement'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.
Dangote Cement (NSA:DCP) has a Interest Coverage of 6.07 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Dangote Cement and its competitors. This is near median its historical median of 6.30. Over the past decade, Dangote Cement's Interest Coverage has ranged from 2.50 to 10.33. According to the industry distribution chart, Dangote Cement ranks #164 out of 307 companies in the Building Materials industry, placing it in the top 53.4%.
Is Dangote Cement's Interest Coverage too high?
Dangote Cement's current Interest Coverage of 6.07 is near median its 10-year median of 6.30. Over the past 10 years, this metric has ranged from a low of 2.50 to a high of 10.33. The Building Materials industry median Interest Coverage is 6.63. Dangote Cement's value of 6.07 is 8.4% below this industry median. Based on the distribution chart, Dangote Cement ranks #164 out of 307 companies in the Building Materials industry, which is below the industry midpoint. Overall, Dangote Cement has a GF Score™ of 100/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dangote Cement's Interest Coverage compare to CRH and VMC?
According to the Building Materials industry distribution chart, Dangote Cement ranks #164 out of 307 companies for Interest Coverage. This places Dangote Cement in the lower half of its industry. The industry median Interest Coverage is 6.63. Dangote Cement's value of 6.07 is 8.4% below this benchmark. Historically, Dangote Cement's own Interest Coverage has ranged from 2.50 to 10.33 over the past decade. While the company's 10-year median is 6.30 vs. the industry median of 6.63, Dangote Cement 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 Building Materials company?
The median Interest Coverage among Building Materials companies is 6.63, based on 307 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. Dangote Cement's current Interest Coverage of 6.07 is 8.4% 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 Dangote Cement and its competitors. For the Building Materials industry, the median Interest Coverage is 6.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dangote Cement's current Interest Coverage is 6.07, which is near median its own 10-year median of 6.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dangote Cement stock overvalued right now?
Based on GuruFocus' analysis, Dangote Cement (NSA:DCP) is currently considered Modestly Overvalued. The stock's GF Value™ is ₦807.00, compared to a current price of ₦963.00 — trading 19.3% above its estimated fair value. The current Interest Coverage is 6.07, which is near median its 10-year median of 6.30 and 8.4% below the Building Materials industry median of 6.63. Dangote Cement's overall GF Score™ is 100/100 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 Dangote Cement (NSA:DCP), the current Interest Coverage is 6.07 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 Dangote Cement (NSA:DCP) Overvalued in 2026?
Based on GuruFocus' analysis, Dangote Cement stock appears to be overvalued.
The current stock price of ₦963.00 is trading 19.3% above its estimated GF Value™ of ₦807.00.
GuruFocus considers Dangote Cement to be Modestly Overvalued.
Key valuation signals for NSA:DCP:
Interest Coverage: 6.07 (near median its 10-year median of 6.30)
GF Value™: ₦807.00 vs. price of ₦963.00 (19.3% above fair value)
Industry Position: 8.4% below the Building Materials median (#164 of 307)
No single metric tells the full story. See the NSA:DCP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dangote Cement PLC is a cement manufacturer. It manufactures and markets cement and related products through its 'Dangote' brand. The principal activity of the Company and its subsidiaries is to operate plants for the preparation, manufacture and distribution of cement and related products. The Company's production activities are undertaken at Obajana town in Kogi State, Gboko in Benue State and Ibese in Ogun State; all in Nigeria. Its geographical segment includes Nigeria and Pan Africa. The company derives a majority of revenue from Nigeria segment.
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