Steel DynamicsSTU:SD5 -4.80%87 Interest Coverage is 17.45 as of Mar. 2026, which is 7% below its 10-year median of 18.83. GuruFocus rates STU:SD5 with a GF Score™ of 87/100 and a GF Value™ of €136.64 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 456 Steel companies, Steel Dynamics ranks better than 76.32% 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. Steel Dynamics's
Operating Income
for the
three
months ended in Mar. 2026 was €502 Mil. Steel Dynamics's Interest Expense for the
three
months ended in Mar. 2026 was €-29 Mil.
Steel Dynamics's interest coverage for the quarter that ended in Mar. 2026 was 17.45.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Steel Dynamics's Interest Coverage or its related term are showing as below:
STU:SD5'
s Interest Coverage Range Over the Past 10 Years
Min: 6.38 Med: 18.83 Max: 81.97
Current: 20.64
STU:SD5's Interest Coverage is ranked better than 76.32% of 456
companies
in the Steel industry
Industry Median: 4.445
vs STU:SD5: 20.64
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 .
Steel Dynamics Interest Coverage Related Terms
Steel Dynamics Interest Coverage Historical Data
* Premium members only.
The historical data trend for Steel Dynamics'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:SD5 vs RS, NUE, TX: Interest Coverage Comparison
For the Steel subindustry, Steel Dynamics'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.
Steel Dynamics Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Steel Dynamics's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Steel Dynamics'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.
Steel Dynamics (STU:SD5) has a Interest Coverage of 17.45 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Steel Dynamics and its competitors. This is near median its historical median of 18.83. Over the past decade, Steel Dynamics' Interest Coverage has ranged from 6.38 to 81.97. According to the industry distribution chart, Steel Dynamics ranks #108 out of 456 companies in the Steel industry, placing it in the top 23.7%.
Is Steel Dynamics' Interest Coverage too high?
Steel Dynamics' current Interest Coverage of 17.45 is near median its 10-year median of 18.83. Over the past 10 years, this metric has ranged from a low of 6.38 to a high of 81.97. The Steel industry median Interest Coverage is 4.45. Steel Dynamics' value of 17.45 is 292.6% above this industry median. Based on the distribution chart, Steel Dynamics ranks #108 out of 456 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Steel Dynamics has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Steel Dynamics' Interest Coverage compare to RS and NUE?
According to the Steel industry distribution chart, Steel Dynamics ranks #108 out of 456 companies for Interest Coverage. This places Steel Dynamics in the top 24% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 4.45. Steel Dynamics' value of 17.45 is 292.6% above this benchmark. Historically, Steel Dynamics' own Interest Coverage has ranged from 6.38 to 81.97 over the past decade. While the company's 10-year median is 18.83 vs. the industry median of 4.45, Steel Dynamics 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 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. Steel Dynamics's current Interest Coverage of 17.45 is 292.6% 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 Steel Dynamics 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. Steel Dynamics's current Interest Coverage is 17.45, which is near median its own 10-year median of 18.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Steel Dynamics stock overvalued right now?
Based on GuruFocus' analysis, Steel Dynamics (STU:SD5) is currently considered Significantly Overvalued. The stock's GF Value™ is €136.64, compared to a current price of €204.50 — trading 49.7% above its estimated fair value. The current Interest Coverage is 17.45, which is near median its 10-year median of 18.83 and 292.6% above the Steel industry median of 4.45. Steel Dynamics' overall GF Score™ is 87/100 with 4 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 Steel Dynamics (STU:SD5), the current Interest Coverage is 17.45 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 Steel Dynamics (STU:SD5) Overvalued in 2026?
Based on GuruFocus' analysis, Steel Dynamics stock appears to be overvalued.
The current stock price of €204.50 is trading 49.7% above its estimated GF Value™ of €136.64.
GuruFocus considers Steel Dynamics to be Significantly Overvalued.
Key valuation signals for STU:SD5:
Interest Coverage: 17.45 (near median its 10-year median of 18.83)
GF Value™: €136.64 vs. price of €204.50 (49.7% above fair value)
Industry Position: 292.6% above the Steel median (#108 of 456)
No single metric tells the full story. See the STU:SD5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Steel Dynamics Inc operates as a domestic steel producer and metal recycler in the United States. The company's product portfolio comprises hot rolled sheet, hot rolled plate, painted sheet products, cold rolled sheet, and others. Its reportable segments are steel operations, metals recycling operations, steel fabrication operations, and aluminum operations. Maximum revenue is generated from its steel operations segment, which consists of manufacturing various steel products and numerous coating operations. Its primary sources of revenue are currently from the manufacture and sale of steel products, the processing and sale of recycled ferrous and nonferrous metals, and the fabrication and sale of steel joists and deck products.
87GF Score
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