Hikari TsushinFRA:HIK +2.73%81 Interest Coverage is 5.22 as of Mar. 2026, which is 26% below its 10-year median of 7.07. GuruFocus rates FRA:HIK with a GF Score™ of 81/100 and a GF Value™ of €215.54 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 428 Conglomerates companies, Hikari Tsushin ranks worse than 50.7% 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. Hikari Tsushin's
Operating Income
for the
three
months ended in Mar. 2026 was €154 Mil. Hikari Tsushin's Interest Expense for the
three
months ended in Mar. 2026 was €-29 Mil.
Hikari Tsushin's interest coverage for the quarter that ended in Mar. 2026 was 5.22.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Hikari Tsushin's Interest Coverage or its related term are showing as below:
FRA:HIK'
s Interest Coverage Range Over the Past 10 Years
Min: 4.07 Med: 7.07 Max: 14.79
Current: 5.21
FRA:HIK's Interest Coverage is ranked worse than 50.7% of 428
companies
in the Conglomerates industry
Industry Median: 5.31
vs FRA:HIK: 5.21
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 .
Hikari Tsushin Interest Coverage Related Terms
Hikari Tsushin Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hikari Tsushin'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 Conglomerates subindustry, Hikari Tsushin'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.
Hikari Tsushin Interest Coverage vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hikari Tsushin's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hikari Tsushin'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.
Hikari Tsushin (FRA:HIK) has a Interest Coverage of 5.22 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hikari Tsushin and its competitors. This is 26% below median its historical median of 7.07. Over the past decade, Hikari Tsushin's Interest Coverage has ranged from 4.07 to 14.79. According to the industry distribution chart, Hikari Tsushin ranks #217 out of 428 companies in the Conglomerates industry, placing it in the top 50.7%.
Is Hikari Tsushin's Interest Coverage too high?
Hikari Tsushin's current Interest Coverage of 5.22 is 26% below median its 10-year median of 7.07. Over the past 10 years, this metric has ranged from a low of 4.07 to a high of 14.79. The Conglomerates industry median Interest Coverage is 5.31. Hikari Tsushin's value of 5.22 is 1.7% below this industry median. Based on the distribution chart, Hikari Tsushin ranks #217 out of 428 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Hikari Tsushin has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hikari Tsushin's Interest Coverage compare to HON and MMM?
According to the Conglomerates industry distribution chart, Hikari Tsushin ranks #217 out of 428 companies for Interest Coverage. This places Hikari Tsushin in the lower half of its industry. The industry median Interest Coverage is 5.31. Hikari Tsushin's value of 5.22 is 1.7% below this benchmark. Historically, Hikari Tsushin's own Interest Coverage has ranged from 4.07 to 14.79 over the past decade. While the company's 10-year median is 7.07 vs. the industry median of 5.31, Hikari Tsushin 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 Conglomerates company?
The median Interest Coverage among Conglomerates companies is 5.31, based on 428 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. Hikari Tsushin's current Interest Coverage of 5.22 is 1.7% 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 Hikari Tsushin and its competitors. For the Conglomerates industry, the median Interest Coverage is 5.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikari Tsushin's current Interest Coverage is 5.22, which is 26% below median its own 10-year median of 7.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hikari Tsushin stock overvalued right now?
Based on GuruFocus' analysis, Hikari Tsushin (FRA:HIK) is currently considered Modestly Undervalued. The stock's GF Value™ is €215.54, compared to a current price of €188.00 — trading 12.8% below its estimated fair value. The current Interest Coverage is 5.22, which is 26% below median its 10-year median of 7.07 and 1.7% below the Conglomerates industry median of 5.31. Hikari Tsushin's overall GF Score™ is 81/100 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 Hikari Tsushin (FRA:HIK), the current Interest Coverage is 5.22 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 Hikari Tsushin (FRA:HIK) Overvalued in 2026?
Based on GuruFocus' analysis, Hikari Tsushin stock appears to be undervalued.
The current stock price of €188.00 is trading 12.8% below its estimated GF Value™ of €215.54.
GuruFocus considers Hikari Tsushin to be Modestly Undervalued.
Key valuation signals for FRA:HIK:
Interest Coverage: 5.22 (26% below median its 10-year median of 7.07)
GF Value™: €215.54 vs. price of €188.00 (12.8% below fair value)
Industry Position: 1.7% below the Conglomerates median (#217 of 428)
No single metric tells the full story. See the FRA:HIK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hikari Tsushin Inc operates as a holding company engaged in diversified businesses through seven segments: Electricity and Gas, Telecommunications, Beverages, Insurance, Finance, Solutions, and Agency Sales. The group provides electricity and gas supply, communication services, natural mineral water, non-life insurance, and warranty services, as well as financial services such as microfinance, industry-specific solution platforms, and agency sales of various products from telecommunications carriers and manufacturers. It generates the majority of its revenue from the Electricity and Gas segment.
81GF Score
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