Nippon SteelSTU:NPS +1.47%72 Interest Coverage is 4.22 as of Mar. 2026, which is 62% below its 10-year median of 11.16. GuruFocus rates STU:NPS with a GF Score™ of 72/100 and a GF Value™ of €3.93 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 456 Steel companies, Nippon Steel ranks worse than 51.97% 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. Nippon Steel's
Operating Income
for the
three
months ended in Mar. 2026 was €748 Mil. Nippon Steel's Interest Expense for the
three
months ended in Mar. 2026 was €-177 Mil.
Nippon Steel's interest coverage for the quarter that ended in Mar. 2026 was 4.22.
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. Nippon Steel Corp interest coverage is 4.24, which is low.
The historical rank and industry rank for Nippon Steel's Interest Coverage or its related term are showing as below:
STU:NPS'
s Interest Coverage Range Over the Past 10 Years
Min: 2.16 Med: 11.16 Max: 32.69
Current: 4.24
STU:NPS's Interest Coverage is ranked worse than 51.97% of 456
companies
in the Steel industry
Industry Median: 4.445
vs STU:NPS: 4.24
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 .
Nippon Steel Interest Coverage Related Terms
Nippon Steel Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nippon 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.
STU:NPS vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Nippon 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.
Nippon Steel Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Nippon Steel's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nippon 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.
Nippon Steel (STU:NPS) has a Interest Coverage of 4.22 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Steel and its competitors. This is 62% below median its historical median of 11.16. Over the past decade, Nippon Steel's Interest Coverage has ranged from 2.16 to 32.69. According to the industry distribution chart, Nippon Steel ranks #237 out of 456 companies in the Steel industry, placing it in the top 52%.
Is Nippon Steel's Interest Coverage too high?
Nippon Steel's current Interest Coverage of 4.22 is 62% below median its 10-year median of 11.16. Over the past 10 years, this metric has ranged from a low of 2.16 to a high of 32.69. The Steel industry median Interest Coverage is 4.45. Nippon Steel's value of 4.22 is 5.1% below this industry median. Based on the distribution chart, Nippon Steel ranks #237 out of 456 companies in the Steel industry, which is below the industry midpoint. Overall, Nippon Steel has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Steel's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Nippon Steel ranks #237 out of 456 companies for Interest Coverage. This places Nippon Steel in the lower half of its industry. The industry median Interest Coverage is 4.45. Nippon Steel's value of 4.22 is 5.1% below this benchmark. Historically, Nippon Steel's own Interest Coverage has ranged from 2.16 to 32.69 over the past decade. While the company's 10-year median is 11.16 vs. the industry median of 4.45, Nippon Steel 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. Nippon Steel's current Interest Coverage of 4.22 is 5.1% 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 Nippon Steel 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. Nippon Steel's current Interest Coverage is 4.22, which is 62% below median its own 10-year median of 11.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Steel stock overvalued right now?
Based on GuruFocus' analysis, Nippon Steel (STU:NPS) is currently considered Modestly Undervalued. The stock's GF Value™ is €3.93, compared to a current price of €2.97 — trading 24.4% below its estimated fair value. The current Interest Coverage is 4.22, which is 62% below median its 10-year median of 11.16 and 5.1% below the Steel industry median of 4.45. Nippon Steel's overall GF Score™ is 72/100 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 Nippon Steel (STU:NPS), the current Interest Coverage is 4.22 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 Nippon Steel (STU:NPS) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Steel stock appears to be undervalued.
The current stock price of €2.97 is trading 24.4% below its estimated GF Value™ of €3.93.
GuruFocus considers Nippon Steel to be Modestly Undervalued.
Key valuation signals for STU:NPS:
Interest Coverage: 4.22 (62% below median its 10-year median of 11.16)
GF Value™: €3.93 vs. price of €2.97 (24.4% below fair value)
Industry Position: 5.1% below the Steel median (#237 of 456)
No single metric tells the full story. See the STU:NPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Steel Corp is mainly engaged in the steel manufacturing business, engineering business, chemical & material business, and system solution business. The company operates through four business segments. The Chemicals & Materials segment manufactures and sells coal chemicals, petrochemicals, electronic materials, semiconductors, carbon fibers, composites, and processed metal products. The Engineering segment handles industrial machinery, steel structures, construction contracting, waste disposal, recycling, and energy supply. The Steel segment focuses on the production and sale of steel products. The System Solutions segment provides IT consulting, outsourcing, and related services. It generates the majority of its revenue from the Steel segment.
72GF Score
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