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. Hitachi Construction Machinery Co's
Operating Income
for the
three
months ended in Mar. 2026 was €174 Mil. Hitachi Construction Machinery Co's Interest Expense for the
three
months ended in Mar. 2026 was €-14 Mil.
Hitachi Construction Machinery Co's interest coverage for the quarter that ended in Mar. 2026 was 12.37.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Hitachi Construction Machinery Co's Interest Coverage or its related term are showing as below:
FRA:HCM'
s Interest Coverage Range Over the Past 10 Years
Min: 3.65 Med: 7.51 Max: 16.64
Current: 8.18
FRA:HCM's Interest Coverage is ranked worse than 55.03% of 169
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.32
vs FRA:HCM: 8.18
Hitachi Construction Machinery Co (FRA:HCM) 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 .
Hitachi Construction Machinery Co Interest Coverage Related Terms
Hitachi Construction Machinery Co Interest Coverage Historical Data
* 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.
Hitachi Construction Machinery Co Interest Coverage Chart
FRA:HCM vs CAT, DE, PCAR: Interest Coverage Comparison
For the Farm & Heavy Construction Machinery subindustry, Hitachi Construction Machinery 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.
Hitachi Construction Machinery Co Interest Coverage vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Hitachi Construction Machinery Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hitachi Construction Machinery Co's Interest Coverage falls into.
Hitachi Construction Machinery 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:
* 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.
Hitachi Construction Machinery Co (FRA:HCM) has a Interest Coverage of 12.37 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hitachi Construction Machinery Co and its competitors. This is 65% above median its historical median of 7.51. Over the past decade, Hitachi Construction Machinery Co's Interest Coverage has ranged from 3.65 to 16.64. According to the industry distribution chart, Hitachi Construction Machinery Co ranks #93 out of 169 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 55%.
Is Hitachi Construction Machinery Co's Interest Coverage too high?
Hitachi Construction Machinery Co's current Interest Coverage of 12.37 is 65% above median its 10-year median of 7.51. Over the past 10 years, this metric has ranged from a low of 3.65 to a high of 16.64. The Farm & Heavy Construction Machinery industry median Interest Coverage is 9.32. Hitachi Construction Machinery Co's value of 12.37 is 32.7% above this industry median. Based on the distribution chart, Hitachi Construction Machinery Co ranks #93 out of 169 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, Hitachi Construction Machinery Co has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Hitachi Construction Machinery Co's Interest Coverage compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Hitachi Construction Machinery Co ranks #93 out of 169 companies for Interest Coverage. This places Hitachi Construction Machinery Co in the lower half of its industry. The industry median Interest Coverage is 9.32. Hitachi Construction Machinery Co's value of 12.37 is 32.7% above this benchmark. Historically, Hitachi Construction Machinery Co's own Interest Coverage has ranged from 3.65 to 16.64 over the past decade. While the company's 10-year median is 7.51 vs. the industry median of 9.32, Hitachi Construction Machinery 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 a Farm & Heavy Construction Machinery company?
The median Interest Coverage among Farm & Heavy Construction Machinery companies is 9.32, based on 169 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. Hitachi Construction Machinery Co's current Interest Coverage of 12.37 is 32.7% 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 Hitachi Construction Machinery Co and its competitors. For the Farm & Heavy Construction Machinery industry, the median Interest Coverage is 9.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hitachi Construction Machinery Co's current Interest Coverage is 12.37, which is 65% above median its own 10-year median of 7.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hitachi Construction Machinery Co stock overvalued right now?
Hitachi Construction Machinery Co (FRA:HCM) has a current Interest Coverage of 12.37. The stock's GF Value™ is €23.97, compared to a current price of €28.80 — trading 20.2% above its estimated fair value. The current Interest Coverage is 12.37, which is 65% above median its 10-year median of 7.51 and 32.7% above the Farm & Heavy Construction Machinery industry median of 9.32. Hitachi Construction Machinery Co's overall GF Score™ is 86/100 with 2 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 Hitachi Construction Machinery Co (FRA:HCM), the current Interest Coverage is 12.37 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 Hitachi Construction Machinery Co (FRA:HCM) Overvalued in 2026?
Based on GuruFocus' analysis, Hitachi Construction Machinery Co stock appears to be overvalued.
The current stock price of €28.80 is trading 20.2% above its estimated GF Value™ of €23.97.
Key valuation signals for FRA:HCM:
Interest Coverage: 12.37 (65% above median its 10-year median of 7.51)
GF Value™: €23.97 vs. price of €28.80 (20.2% above fair value)
Industry Position: 32.7% above the Farm & Heavy Construction Machinery median (#93 of 169)
No single metric tells the full story. See the FRA:HCM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hitachi Construction Machinery Co Business Description
Hitachi Construction Machinery manufactures and sells construction and mining machinery, and provides related services such as parts supply, rentals, and others. HCM was established in 1970 as a subsidiary of Hitachi, but its origins date back to 1949 when it introduced Japan's first mechanical excavator. The company's main products include hydraulic excavators for mining and construction, rigid dump trucks, and wheel loaders. As of August 2022, Hitachi is no longer the parent company of HCM, after selling 26% of its stake to HCJI Holdings, a joint venture between Itochu and Japan Industrial Partners. Currently, Hitachi has a 25.42% stake in Hitachi Construction Machinery as an equity-method affiliate. HCM is based in Tokyo.
86GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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