National Hydro Power Co (XNEP:NHPC) Interest Coverage: 5.43 (As of Jan. 2026) — 50% Above Median


XNEP:NHPC National Hydro Power Co Ltd XNEP:NHPC
84 GF Score
Price NPR255.00
GF Value NPR330.54
Valuation Modestly Undervalued
! 5 Warning Signs
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What is National Hydro Power Co Interest Coverage?

National Hydro Power Co XNEP:NHPC -1.92% 84 Interest Coverage is 5.43 as of Jan. 2026, which is 50% above its 10-year median of 3.63. GuruFocus rates XNEP:NHPC with a GF Score™ of 84/100 and a GF Value™ of NPR330.54 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 322 Utilities - Independent Power Producers companies, National Hydro Power Co ranks better than 54.04% 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. National Hydro Power Co's Operating Income for the three months ended in Jan. 2026 was NPR41.3 Mil. National Hydro Power Co's Interest Expense for the three months ended in Jan. 2026 was NPR-7.6 Mil. National Hydro Power Co's interest coverage for the quarter that ended in Jan. 2026 was 5.43. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for National Hydro Power Co's Interest Coverage or its related term are showing as below:

XNEP:NHPC' s Interest Coverage Range Over the Past 10 Years
Min: 0.7   Med: 3.63   Max: 32.29
Current: 3.25


XNEP:NHPC's Interest Coverage is ranked better than
54.04% of 322 companies
in the Utilities - Independent Power Producers industry
Industry Median: 2.84 vs XNEP:NHPC: 3.25

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


National Hydro Power Co  (XNEP:NHPC) Interest Coverage Explanation

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 .


National Hydro Power Co Interest Coverage Related Terms


National Hydro Power Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for National Hydro Power Co'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.

National Hydro Power Co Interest Coverage Chart

National Hydro Power Co Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.29 2.81 0.00 0.70 1.15

National Hydro Power Co Quarterly Data
Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Jan26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 1.91 0.70 6.65 5.43

National Hydro Power Co Interest Coverage Competitor Comparison

For the Utilities - Renewable subindustry, National Hydro Power Co'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.


National Hydro Power Co Interest Coverage vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, National Hydro Power Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where National Hydro Power Co's Interest Coverage falls into.


XNEP:NHPC
84GF Score
National Hydro Power Co Ltd XNEP:NHPC
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

National Hydro Power Co Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

National Hydro Power Co's Interest Coverage for the fiscal year that ended in Jul. 2025 is calculated as

Here, for the fiscal year that ended in Jul. 2025, National Hydro Power Co's Interest Expense was NPR-21.5 Mil. Its Operating Income was NPR24.8 Mil. And its Long-Term Debt & Capital Lease Obligation was NPR491.9 Mil.

Interest Coverage=-1* Operating Income (A: Jul. 2025 )/Interest Expense (A: Jul. 2025 )
=-1*24.789/-21.487
=1.15

National Hydro Power Co's Interest Coverage for the quarter that ended in Jan. 2026 is calculated as

Here, for the three months ended in Jan. 2026, National Hydro Power Co's Interest Expense was NPR-7.6 Mil. Its Operating Income was NPR41.3 Mil. And its Long-Term Debt & Capital Lease Obligation was NPR554.9 Mil.

Interest Coverage=-1* Operating Income (Q: Jan. 2026 )/Interest Expense (Q: Jan. 2026 )
=-1*41.29/-7.599
=5.43

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 5.43 mean?
National Hydro Power Co (XNEP:NHPC) has a Interest Coverage of 5.43 as of Jan. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on National Hydro Power Co and its competitors. This is 50% above median its historical median of 3.63. Over the past decade, National Hydro Power Co's Interest Coverage has ranged from 0.70 to 32.29. According to the industry distribution chart, National Hydro Power Co ranks #148 out of 322 companies in the Utilities - Independent Power Producers industry, placing it in the top 46%.
Is National Hydro Power Co's Interest Coverage too high?
National Hydro Power Co's current Interest Coverage of 5.43 is 50% above median its 10-year median of 3.63. Over the past 10 years, this metric has ranged from a low of 0.70 to a high of 32.29. The Utilities - Independent Power Producers industry median Interest Coverage is 2.84. National Hydro Power Co's value of 5.43 is 91.2% above this industry median. Based on the distribution chart, National Hydro Power Co ranks #148 out of 322 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, National Hydro Power Co has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does National Hydro Power Co's Interest Coverage compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, National Hydro Power Co ranks #148 out of 322 companies for Interest Coverage. This puts National Hydro Power Co in the upper half of its industry. The industry median Interest Coverage is 2.84. National Hydro Power Co's value of 5.43 is 91.2% above this benchmark. Historically, National Hydro Power Co's own Interest Coverage has ranged from 0.70 to 32.29 over the past decade. While the company's 10-year median is 3.63 vs. the industry median of 2.84, National Hydro Power Co 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 an Utilities - Independent Power Producers company?
The median Interest Coverage among Utilities - Independent Power Producers companies is 2.84, based on 322 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. National Hydro Power Co's current Interest Coverage of 5.43 is 91.2% 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 National Hydro Power Co and its competitors. For the Utilities - Independent Power Producers industry, the median Interest Coverage is 2.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Hydro Power Co's current Interest Coverage is 5.43, which is 50% above median its own 10-year median of 3.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Hydro Power Co stock overvalued right now?
Based on GuruFocus' analysis, National Hydro Power Co (XNEP:NHPC) is currently considered Modestly Undervalued. The stock's GF Value™ is NPR330.54, compared to a current price of NPR255.00 — trading 22.9% below its estimated fair value. The current Interest Coverage is 5.43, which is 50% above median its 10-year median of 3.63 and 91.2% above the Utilities - Independent Power Producers industry median of 2.84. National Hydro Power Co's overall GF Score™ is 84/100 with 5 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 National Hydro Power Co (XNEP:NHPC), the current Interest Coverage is 5.43 as of Jan. 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 National Hydro Power Co (XNEP:NHPC) Overvalued in 2026?

Based on GuruFocus' analysis, National Hydro Power Co stock appears to be undervalued. The current stock price of NPR255.00 is trading 22.9% below its estimated GF Value™ of NPR330.54. GuruFocus considers National Hydro Power Co to be Modestly Undervalued.

Key valuation signals for XNEP:NHPC:

  • Interest Coverage: 5.43 (50% above median its 10-year median of 3.63)
  • GF Value™: NPR330.54 vs. price of NPR255.00 (22.9% below fair value)
  • GF Score™: 84/100 with 5 warning signs
  • Industry Position: 91.2% above the Utilities - Independent Power Producers median (#148 of 322)

No single metric tells the full story. See the XNEP:NHPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


National Hydro Power Co Business Description

Address BinayakNagar-10, Baneshwor, Kathmandu, NPL
National Hydro Power Co Ltd is engaged in the development of hydropower projects. The company's projects include Indrawati-III Hydropower Project, Lower Indrawati Hydropower Project and Lower Erkhuwa Hydropower Project.
84GF Score

Get the complete analysis for XNEP:NHPC

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NPR255.00
Price
NPR330.54
GF Value