Panasonic Holdings (FRA:MAT1) Interest Coverage: 7.63 (As of Mar. 2026) — 47% Below Median


FRA:MAT1 Panasonic Holdings Corp FRA:MAT1
60 GF Score
Price €22.90
GF Value €7.91
Valuation Significantly Overvalued
! 12 Warning Signs
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What is Panasonic Holdings Interest Coverage?

Panasonic Holdings FRA:MAT1 -5.20% 60 Interest Coverage is 7.63 as of Mar. 2026, which is 47% below its 10-year median of 14.30. GuruFocus rates FRA:MAT1 with a GF Score™ of 60/100 and a GF Value™ of €7.91 (Significantly Overvalued). The stock has 12 warning signs investors should review. Among 1,671 Hardware companies, Panasonic Holdings ranks worse than 73.97% 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. Panasonic Holdings's Operating Income for the three months ended in Mar. 2026 was €371 Mil. Panasonic Holdings's Interest Expense for the three months ended in Mar. 2026 was €-49 Mil. Panasonic Holdings's interest coverage for the quarter that ended in Mar. 2026 was 7.63. The higher the ratio, the stronger the company's financial strength is.

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

FRA:MAT1' s Interest Coverage Range Over the Past 10 Years
Min: 5   Med: 14.3   Max: 19.41
Current: 5


FRA:MAT1's Interest Coverage is ranked worse than
73.97% of 1671 companies
in the Hardware industry
Industry Median: 13.79 vs FRA:MAT1: 5.00

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


Panasonic Holdings  (FRA:MAT1) 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 .


Panasonic Holdings Interest Coverage Related Terms


Panasonic Holdings Interest Coverage Historical Data

* Premium members only.

The historical data trend for Panasonic Holdings'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.

Panasonic Holdings Interest Coverage Chart

Panasonic Holdings Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.22 13.59 14.44 14.15 5.00

Panasonic Holdings 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 11.02 10.18 5.72 0.00 7.63

FRA:MAT1 vs AAPL: Interest Coverage Comparison

For the Consumer Electronics subindustry, Panasonic Holdings'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.


Panasonic Holdings Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, Panasonic Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Panasonic Holdings's Interest Coverage falls into.


FRA:MAT1
60GF Score
Panasonic Holdings Corp FRA:MAT1
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Panasonic Holdings 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.

Panasonic Holdings's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, Panasonic Holdings's Interest Expense was €-229 Mil. Its Operating Income was €1,145 Mil. And its Long-Term Debt & Capital Lease Obligation was €7,407 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*1144.536/-228.937
=5.00

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

Here, for the three months ended in Mar. 2026, Panasonic Holdings's Interest Expense was €-49 Mil. Its Operating Income was €371 Mil. And its Long-Term Debt & Capital Lease Obligation was €7,407 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*371.167/-48.657
=7.63

* 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 7.63 mean?
Panasonic Holdings (FRA:MAT1) has a Interest Coverage of 7.63 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Panasonic Holdings and its competitors. This is 47% below median its historical median of 14.30. Over the past decade, Panasonic Holdings' Interest Coverage has ranged from 5.00 to 19.41. According to the industry distribution chart, Panasonic Holdings ranks #1236 out of 1671 companies in the Hardware industry, placing it in the top 74%.
Is Panasonic Holdings' Interest Coverage too high?
Panasonic Holdings' current Interest Coverage of 7.63 is 47% below median its 10-year median of 14.30. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 19.41. The Hardware industry median Interest Coverage is 13.79. Panasonic Holdings' value of 7.63 is 44.7% below this industry median. Based on the distribution chart, Panasonic Holdings ranks #1236 out of 1671 companies in the Hardware industry, which is below the industry midpoint. Overall, Panasonic Holdings has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Panasonic Holdings' Interest Coverage compare to AAPL?
According to the Hardware industry distribution chart, Panasonic Holdings ranks #1236 out of 1671 companies for Interest Coverage. This places Panasonic Holdings in the lower half of its industry. The industry median Interest Coverage is 13.79. Panasonic Holdings' value of 7.63 is 44.7% below this benchmark. Historically, Panasonic Holdings' own Interest Coverage has ranged from 5.00 to 19.41 over the past decade. While the company's 10-year median is 14.30 vs. the industry median of 13.79, Panasonic Holdings 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.79, based on 1,671 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. Panasonic Holdings's current Interest Coverage of 7.63 is 44.7% 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 Panasonic Holdings and its competitors. For the Hardware industry, the median Interest Coverage is 13.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Panasonic Holdings's current Interest Coverage is 7.63, which is 47% below median its own 10-year median of 14.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Panasonic Holdings stock overvalued right now?
Based on GuruFocus' analysis, Panasonic Holdings (FRA:MAT1) is currently considered Significantly Overvalued. The stock's GF Value™ is €7.91, compared to a current price of €22.90 — trading 189.4% above its estimated fair value. The current Interest Coverage is 7.63, which is 47% below median its 10-year median of 14.30 and 44.7% below the Hardware industry median of 13.79. Panasonic Holdings' overall GF Score™ is 60/100 with 12 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 Panasonic Holdings (FRA:MAT1), the current Interest Coverage is 7.63 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 Panasonic Holdings (FRA:MAT1) Overvalued in 2026?

Based on GuruFocus' analysis, Panasonic Holdings stock appears to be overvalued. The current stock price of €22.90 is trading 189.4% above its estimated GF Value™ of €7.91. GuruFocus considers Panasonic Holdings to be Significantly Overvalued.

Key valuation signals for FRA:MAT1:

  • Interest Coverage: 7.63 (47% below median its 10-year median of 14.30)
  • GF Value™: €7.91 vs. price of €22.90 (189.4% above fair value)
  • GF Score™: 60/100 with 12 warning signs
  • Industry Position: 44.7% below the Hardware median (#1236 of 1671)

No single metric tells the full story. See the FRA:MAT1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Panasonic Holdings Business Description

Address 1006 Kadoma, Osaka Prefecture, Kadoma, JPN, 571-8501
Panasonic Holdings Corp is engaged in the development, manufacture, and sale of a wide range of electronic and electrical products. The company operates through six segments. The Lifestyle segment provides home appliances such as refrigerators, air conditioners, and beauty and hair care devices. The Automotive segment offers in-vehicle infotainment systems, speaker systems, and advanced driver assistance systems. The Connect segment supplies communication systems, welding machines, and projectors. The Industry segment produces electronic components, motors, and factory automation equipment. The Energy segment develops and sells lithium-ion batteries, dry batteries, and small secondary batteries. The Others segment includes the sale of televisions, cameras, and building materials.
60GF Score

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

€22.90
Price
€7.91
GF Value