Nestle NigeriaNSA:NESTLE 76 Interest Coverage is 4.47 as of Mar. 2026, which is 51% below its 10-year median of 9.10. GuruFocus rates NSA:NESTLE with a GF Score™ of 76/100 and a GF Value™ of ₦2,149.87 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,511 Consumer Packaged Goods companies, Nestle Nigeria ranks worse than 74.19% 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. Nestle Nigeria's
Operating Income
for the
three
months ended in Mar. 2026 was ₦75,602 Mil. Nestle Nigeria's Interest Expense for the
three
months ended in Mar. 2026 was ₦-16,923 Mil.
Nestle Nigeria's interest coverage for the quarter that ended in Mar. 2026 was 4.47.
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. Nestle Nigeria PLC interest coverage is 3.09, which is low.
The historical rank and industry rank for Nestle Nigeria's Interest Coverage or its related term are showing as below:
NSA:NESTLE'
s Interest Coverage Range Over the Past 10 Years
Min: 1.67 Med: 9.1 Max: 32.32
Current: 3.09
NSA:NESTLE's Interest Coverage is ranked worse than 74.19% of 1511
companies
in the Consumer Packaged Goods industry
Industry Median: 8.63
vs NSA:NESTLE: 3.09
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 .
Nestle Nigeria Interest Coverage Related Terms
Nestle Nigeria Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nestle Nigeria'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:NESTLE vs KHC, GIS, JBS: Interest Coverage Comparison
For the Packaged Foods subindustry, Nestle Nigeria'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.
Nestle Nigeria Interest Coverage vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle Nigeria's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nestle Nigeria'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.
Nestle Nigeria (NSA:NESTLE) has a Interest Coverage of 4.47 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nestle Nigeria and its competitors. This is 51% below median its historical median of 9.10. Over the past decade, Nestle Nigeria's Interest Coverage has ranged from 1.67 to 32.32. According to the industry distribution chart, Nestle Nigeria ranks #1121 out of 1511 companies in the Consumer Packaged Goods industry, placing it in the top 74.2%.
Is Nestle Nigeria's Interest Coverage too high?
Nestle Nigeria's current Interest Coverage of 4.47 is 51% below median its 10-year median of 9.10. Over the past 10 years, this metric has ranged from a low of 1.67 to a high of 32.32. The Consumer Packaged Goods industry median Interest Coverage is 8.63. Nestle Nigeria's value of 4.47 is 48.2% below this industry median. Based on the distribution chart, Nestle Nigeria ranks #1121 out of 1511 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Nestle Nigeria has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nestle Nigeria's Interest Coverage compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle Nigeria ranks #1121 out of 1511 companies for Interest Coverage. This places Nestle Nigeria in the lower half of its industry. The industry median Interest Coverage is 8.63. Nestle Nigeria's value of 4.47 is 48.2% below this benchmark. Historically, Nestle Nigeria's own Interest Coverage has ranged from 1.67 to 32.32 over the past decade. While the company's 10-year median is 9.10 vs. the industry median of 8.63, Nestle Nigeria 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 Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.63, based on 1,511 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. Nestle Nigeria's current Interest Coverage of 4.47 is 48.2% 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 Nestle Nigeria and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle Nigeria's current Interest Coverage is 4.47, which is 51% below median its own 10-year median of 9.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle Nigeria stock overvalued right now?
Based on GuruFocus' analysis, Nestle Nigeria (NSA:NESTLE) is currently considered Significantly Overvalued. The stock's GF Value™ is ₦2,149.87, compared to a current price of ₦3,125.00 — trading 45.4% above its estimated fair value. The current Interest Coverage is 4.47, which is 51% below median its 10-year median of 9.10 and 48.2% below the Consumer Packaged Goods industry median of 8.63. Nestle Nigeria's overall GF Score™ is 76/100 with 8 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 Nestle Nigeria (NSA:NESTLE), the current Interest Coverage is 4.47 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 Nestle Nigeria (NSA:NESTLE) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle Nigeria stock appears to be overvalued.
The current stock price of ₦3,125.00 is trading 45.4% above its estimated GF Value™ of ₦2,149.87.
GuruFocus considers Nestle Nigeria to be Significantly Overvalued.
Key valuation signals for NSA:NESTLE:
Interest Coverage: 4.47 (51% below median its 10-year median of 9.10)
GF Value™: ₦2,149.87 vs. price of ₦3,125.00 (45.4% above fair value)
Industry Position: 48.2% below the Consumer Packaged Goods median (#1121 of 1511)
No single metric tells the full story. See the NSA:NESTLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nestle Nigeria PLC is a food and beverage company. It is involved in the business of manufacturing, marketing, and distribution of food products. The firm has categorized its products into Baby foods, Coffee, Culinary, Dairy, Drinks, and Recipes. It develops and markets its products under brands such as Cerelac, Nescafe, Nido, Maggi, Milo, etc. The company has Food and Beverage reportable segments. The Food segment engaged in the production and sale of Maggi, Cerelac, SMA, Nan, Lactogen, and Golden Morn. The Beverage segment consists of the production and sale of Milo, Chocomilo, Nido, Nescafe, Milo ready-to-drink, and Nestle Pure Life. The Food segment generates the majority of the revenue. Geographically, the majority of the revenue is generated from Nigeria.
76GF Score
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