Twin Disc (FRA:TWN) Interest Coverage: 7.37 (As of Mar. 2026) — Near Median


FRA:TWN Twin Disc Inc FRA:TWN
61 GF Score
Price €19.40
GF Value €13.25
Valuation Significantly Overvalued
! 9 Warning Signs
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What is Twin Disc Interest Coverage?

Twin Disc FRA:TWN +1.04% 61 Interest Coverage is 7.37 as of Mar. 2026, which is 4% below its 10-year median of 7.66. GuruFocus rates FRA:TWN with a GF Score™ of 61/100 and a GF Value™ of €13.25 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 2,329 Industrial Products companies, Twin Disc ranks worse than 73.59% 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. Twin Disc's Operating Income for the three months ended in Mar. 2026 was €5.0 Mil. Twin Disc's Interest Expense for the three months ended in Mar. 2026 was €-0.7 Mil. Twin Disc's interest coverage for the quarter that ended in Mar. 2026 was 7.37. The higher the ratio, the stronger the company's financial strength is.

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

FRA:TWN' s Interest Coverage Range Over the Past 10 Years
Min: 3.89   Med: 7.66   Max: 69.31
Current: 4.94


FRA:TWN's Interest Coverage is ranked worse than
73.59% of 2329 companies
in the Industrial Products industry
Industry Median: 14.79 vs FRA:TWN: 4.94

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


Twin Disc  (FRA:TWN) 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 .


Twin Disc Interest Coverage Related Terms


Twin Disc Interest Coverage Historical Data

* Premium members only.

The historical data trend for Twin Disc'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.

Twin Disc Interest Coverage Chart

Twin Disc Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 5.64 7.21 8.10 3.89

Twin Disc 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 2.95 6.73 2.79 2.70 7.37

FRA:TWN vs HUHU, ZJK, NPWR: Interest Coverage Comparison

For the Specialty Industrial Machinery subindustry, Twin Disc'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.


Twin Disc Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Twin Disc's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Twin Disc's Interest Coverage falls into.


FRA:TWN
61GF Score
Twin Disc Inc FRA:TWN
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Twin Disc 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.

Twin Disc's Interest Coverage for the fiscal year that ended in Jun. 2025 is calculated as

Here, for the fiscal year that ended in Jun. 2025, Twin Disc's Interest Expense was €-2.3 Mil. Its Operating Income was €8.9 Mil. And its Long-Term Debt & Capital Lease Obligation was €37.1 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*8.926/-2.294
=3.89

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

Here, for the three months ended in Mar. 2026, Twin Disc's Interest Expense was €-0.7 Mil. Its Operating Income was €5.0 Mil. And its Long-Term Debt & Capital Lease Obligation was €47.2 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*5.036/-0.683
=7.37

* 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 7.37 mean?
Twin Disc (FRA:TWN) has a Interest Coverage of 7.37 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Twin Disc and its competitors. This is near median its historical median of 7.66. Over the past decade, Twin Disc's Interest Coverage has ranged from 3.89 to 69.31. According to the industry distribution chart, Twin Disc ranks #1714 out of 2329 companies in the Industrial Products industry, placing it in the top 73.6%.
Is Twin Disc's Interest Coverage too high?
Twin Disc's current Interest Coverage of 7.37 is near median its 10-year median of 7.66. Over the past 10 years, this metric has ranged from a low of 3.89 to a high of 69.31. The Industrial Products industry median Interest Coverage is 14.79. Twin Disc's value of 7.37 is 50.2% below this industry median. Based on the distribution chart, Twin Disc ranks #1714 out of 2329 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Twin Disc has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Twin Disc's Interest Coverage compare to HUHU and ZJK?
According to the Industrial Products industry distribution chart, Twin Disc ranks #1714 out of 2329 companies for Interest Coverage. This places Twin Disc in the lower half of its industry. The industry median Interest Coverage is 14.79. Twin Disc's value of 7.37 is 50.2% below this benchmark. Historically, Twin Disc's own Interest Coverage has ranged from 3.89 to 69.31 over the past decade. While the company's 10-year median is 7.66 vs. the industry median of 14.79, Twin Disc 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 an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.79, based on 2,329 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. Twin Disc's current Interest Coverage of 7.37 is 50.2% 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 Twin Disc and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Twin Disc's current Interest Coverage is 7.37, which is near median its own 10-year median of 7.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Twin Disc stock overvalued right now?
Based on GuruFocus' analysis, Twin Disc (FRA:TWN) is currently considered Significantly Overvalued. The stock's GF Value™ is €13.25, compared to a current price of €19.40 — trading 46.4% above its estimated fair value. The current Interest Coverage is 7.37, which is near median its 10-year median of 7.66 and 50.2% below the Industrial Products industry median of 14.79. Twin Disc's overall GF Score™ is 61/100 with 9 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 Twin Disc (FRA:TWN), the current Interest Coverage is 7.37 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 Twin Disc (FRA:TWN) Overvalued in 2026?

Based on GuruFocus' analysis, Twin Disc stock appears to be overvalued. The current stock price of €19.40 is trading 46.4% above its estimated GF Value™ of €13.25. GuruFocus considers Twin Disc to be Significantly Overvalued.

Key valuation signals for FRA:TWN:

  • Interest Coverage: 7.37 (near median its 10-year median of 7.66)
  • GF Value™: €13.25 vs. price of €19.40 (46.4% above fair value)
  • GF Score™: 61/100 with 9 warning signs
  • Industry Position: 50.2% below the Industrial Products median (#1714 of 2329)

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


Twin Disc Business Description

Other Exchanges TWIN:USA
Address 222 East Erie Street, Suite 400, Milwaukee, WI, USA, 53202
Twin Disc Inc is a United States-based firm engaged in the manufacture and sale of marine and heavy-duty off-highway power transmission equipment. The company operates its business through two reportable segments: Manufacturing and Distribution. Its product portfolio includes marine transmissions, surface drives, propellers, and boat management systems as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and control systems.
61GF Score

Get the complete analysis for FRA:TWN

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

€19.40
Price
€13.25
GF Value