DensoDNZOF -8.14%73 Interest Coverage is 16.57 as of Mar. 2026, which is 42% below its 10-year median of 28.76. GuruFocus rates DNZOF with a GF Score™ of 73/100 and a GF Value™ of $11.70 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,066 Vehicles & Parts companies, Denso ranks better than 65.2% 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. Denso's
Operating Income
for the
three
months ended in Mar. 2026 was $1,113 Mil. Denso's Interest Expense for the
three
months ended in Mar. 2026 was $-67 Mil.
Denso's interest coverage for the quarter that ended in Mar. 2026 was 16.57.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Denso's Interest Coverage or its related term are showing as below:
DNZOF'
s Interest Coverage Range Over the Past 10 Years
Min: 6.35 Med: 28.76 Max: 59.88
Current: 17.41
DNZOF's Interest Coverage is ranked better than 65.2% of 1066
companies
in the Vehicles & Parts industry
Industry Median: 8.295
vs DNZOF: 17.41
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 .
Denso Interest Coverage Related Terms
Denso Interest Coverage Historical Data
* Premium members only.
The historical data trend for Denso'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.
For the Auto Parts subindustry, Denso'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.
Denso Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Denso's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Denso'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.
Denso (DNZOF) has a Interest Coverage of 16.57 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Denso and its competitors. This is 42% below median its historical median of 28.76. Over the past decade, Denso's Interest Coverage has ranged from 6.35 to 59.88. According to the industry distribution chart, Denso ranks #371 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 34.8%.
Is Denso's Interest Coverage too high?
Denso's current Interest Coverage of 16.57 is 42% below median its 10-year median of 28.76. Over the past 10 years, this metric has ranged from a low of 6.35 to a high of 59.88. The Vehicles & Parts industry median Interest Coverage is 8.30. Denso's value of 16.57 is 99.8% above this industry median. Based on the distribution chart, Denso ranks #371 out of 1066 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Denso has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Denso's Interest Coverage compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Denso ranks #371 out of 1066 companies for Interest Coverage. This puts Denso in the upper half of its industry. The industry median Interest Coverage is 8.30. Denso's value of 16.57 is 99.8% above this benchmark. Historically, Denso's own Interest Coverage has ranged from 6.35 to 59.88 over the past decade. While the company's 10-year median is 28.76 vs. the industry median of 8.30, Denso 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.30, based on 1,066 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. Denso's current Interest Coverage of 16.57 is 99.8% 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 Denso and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Denso's current Interest Coverage is 16.57, which is 42% below median its own 10-year median of 28.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Denso stock overvalued right now?
Based on GuruFocus' analysis, Denso (DNZOF) is currently considered Fairly Valued. The stock's GF Value™ is $11.70, compared to a current price of $10.73 — trading 8.3% below its estimated fair value. The current Interest Coverage is 16.57, which is 42% below median its 10-year median of 28.76 and 99.8% above the Vehicles & Parts industry median of 8.30. Denso's overall GF Score™ is 73/100 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 Denso (DNZOF), the current Interest Coverage is 16.57 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 Denso (DNZOF) Overvalued in 2026?
Based on GuruFocus' analysis, Denso stock appears to be undervalued.
The current stock price of $10.73 is trading 8.3% below its estimated GF Value™ of $11.70.
GuruFocus considers Denso to be Fairly Valued.
Key valuation signals for DNZOF:
Interest Coverage: 16.57 (42% below median its 10-year median of 28.76)
GF Value™: $11.70 vs. price of $10.73 (8.3% below fair value)
Industry Position: 99.8% above the Vehicles & Parts median (#371 of 1066)
No single metric tells the full story. See the DNZOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Denso was founded on Dec. 16, 1949, as Nippondenso, and is now a leading global manufacturer of automotive components, ranging from thermal and powertrain control systems to electronic and electrification solutions, headquartered in Kariya, Aichi Prefecture, Japan, and a core member of the Toyota Group.
73GF Score
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