Teqnion AB (FRA:M45) Interest Coverage: 3.84 (As of Mar. 2026) — 74% Below Median


FRA:M45 Teqnion AB FRA:M45
63 GF Score
Price €13.96
GF Value €18.55
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Teqnion AB Interest Coverage?

Teqnion AB FRA:M45 +0.58% 63 Interest Coverage is 3.84 as of Mar. 2026, which is 74% below its 10-year median of 14.82. GuruFocus rates FRA:M45 with a GF Score™ of 63/100 and a GF Value™ of €18.55 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 428 Conglomerates companies, Teqnion AB ranks worse than 63.79% 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. Teqnion AB's Operating Income for the three months ended in Mar. 2026 was €6.3 Mil. Teqnion AB's Interest Expense for the three months ended in Mar. 2026 was €-1.6 Mil. Teqnion AB's interest coverage for the quarter that ended in Mar. 2026 was 3.84. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Teqnion AB's Interest Coverage or its related term are showing as below:

FRA:M45' s Interest Coverage Range Over the Past 10 Years
Min: 2.35   Med: 14.82   Max: 25.3
Current: 3.43


FRA:M45's Interest Coverage is ranked worse than
63.79% of 428 companies
in the Conglomerates industry
Industry Median: 5.31 vs FRA:M45: 3.43

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


Teqnion AB  (FRA:M45) 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 .


Teqnion AB Interest Coverage Related Terms


Teqnion AB Interest Coverage Historical Data

* Premium members only.

The historical data trend for Teqnion AB'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.

Teqnion AB Interest Coverage Chart

Teqnion AB Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 21.59 14.82 9.25 4.05 2.35

Teqnion AB Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 7.36 4.76 0.00 4.47 3.84

FRA:M45 vs HON, MMM: Interest Coverage Comparison

For the Conglomerates subindustry, Teqnion AB'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.


Teqnion AB Interest Coverage vs Conglomerates Industry

For the Conglomerates industry and Industrials sector, Teqnion AB's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Teqnion AB's Interest Coverage falls into.


FRA:M45
63GF Score
Teqnion AB FRA:M45
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Teqnion AB 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.

Teqnion AB's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Teqnion AB's Interest Expense was €-3.0 Mil. Its Operating Income was €7.0 Mil. And its Long-Term Debt & Capital Lease Obligation was €55.0 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*7.039/-2.996
=2.35

Teqnion AB's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Teqnion AB's Interest Expense was €-1.6 Mil. Its Operating Income was €6.3 Mil. And its Long-Term Debt & Capital Lease Obligation was €57.7 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*6.267/-1.634
=3.84

* 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 3.84 mean?
Teqnion AB (FRA:M45) has a Interest Coverage of 3.84 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Teqnion AB and its competitors. This is 74% below median its historical median of 14.82. Over the past decade, Teqnion AB's Interest Coverage has ranged from 2.35 to 25.30. According to the industry distribution chart, Teqnion AB ranks #273 out of 428 companies in the Conglomerates industry, placing it in the top 63.8%.
Is Teqnion AB's Interest Coverage too high?
Teqnion AB's current Interest Coverage of 3.84 is 74% below median its 10-year median of 14.82. Over the past 10 years, this metric has ranged from a low of 2.35 to a high of 25.30. The Conglomerates industry median Interest Coverage is 5.31. Teqnion AB's value of 3.84 is 27.7% below this industry median. Based on the distribution chart, Teqnion AB ranks #273 out of 428 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Teqnion AB has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Teqnion AB's Interest Coverage compare to HON and MMM?
According to the Conglomerates industry distribution chart, Teqnion AB ranks #273 out of 428 companies for Interest Coverage. This places Teqnion AB in the lower half of its industry. The industry median Interest Coverage is 5.31. Teqnion AB's value of 3.84 is 27.7% below this benchmark. Historically, Teqnion AB's own Interest Coverage has ranged from 2.35 to 25.30 over the past decade. While the company's 10-year median is 14.82 vs. the industry median of 5.31, Teqnion AB 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. Teqnion AB's current Interest Coverage of 3.84 is 27.7% 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 Teqnion AB 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. Teqnion AB's current Interest Coverage is 3.84, which is 74% below median its own 10-year median of 14.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Teqnion AB stock overvalued right now?
Based on GuruFocus' analysis, Teqnion AB (FRA:M45) is currently considered Modestly Undervalued. The stock's GF Value™ is €18.55, compared to a current price of €13.96 — trading 24.7% below its estimated fair value. The current Interest Coverage is 3.84, which is 74% below median its 10-year median of 14.82 and 27.7% below the Conglomerates industry median of 5.31. Teqnion AB's overall GF Score™ is 63/100 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 Teqnion AB (FRA:M45), the current Interest Coverage is 3.84 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 Teqnion AB (FRA:M45) Overvalued in 2026?

Based on GuruFocus' analysis, Teqnion AB stock appears to be undervalued. The current stock price of €13.96 is trading 24.7% below its estimated GF Value™ of €18.55. GuruFocus considers Teqnion AB to be Modestly Undervalued.

Key valuation signals for FRA:M45:

  • Interest Coverage: 3.84 (74% below median its 10-year median of 14.82)
  • GF Value™: €18.55 vs. price of €13.96 (24.7% below fair value)
  • GF Score™: 63/100 with 4 warning signs
  • Industry Position: 27.7% below the Conglomerates median (#273 of 428)

No single metric tells the full story. See the FRA:M45 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Teqnion AB Business Description

Other Exchanges TEQ:Sweden
Address Dalvagen 14, Solna, SWE, 169 56
Teqnion AB is an industrial group that acquires stable niche companies with good cash flows to develop and own with an eternal horizon. The subsidiaries are managed in a decentralized manner with support from the parent company. Its group of companies consists of agency businesses that include brands, product and service companies developing solutions for specific industrial niches, and manufacturing companies that sell products under their own or customers' brands. Teqnion continuously supports its companies with planning work and problem-solving beyond the everyday management and financial resources. Geographically, the Group generates maximum revenue from Sweden, and the rest from the European Union (excluding Sweden), the United Kingdom, Norway, the USA, and the Rest of the world.
63GF Score

Get the complete analysis for FRA:M45

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

€13.96
Price
€18.55
GF Value