HNWAF (Hanwa Co) Interest Coverage: 8.98 (As of Mar. 2026) — 22% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

HNWAF Hanwa Co Ltd HNWAF
57 GF Score
Price $10.79
GF Value $7.60
Valuation Significantly Overvalued
! 3 Warning Signs
View Full Analysis

What is Hanwa Co Interest Coverage?

Hanwa Co HNWAF -1.55% 57 Interest Coverage is 8.98 as of Mar. 2026, which is 22% above its 10-year median of 7.39. GuruFocus rates HNWAF with a GF Score™ of 57/100 and a GF Value™ of $7.60 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 427 Conglomerates companies, Hanwa Co ranks better than 57.14% 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. Hanwa Co's Operating Income for the three months ended in Mar. 2026 was $107 Mil. Hanwa Co's Interest Expense for the three months ended in Mar. 2026 was $-12 Mil. Hanwa Co's interest coverage for the quarter that ended in Mar. 2026 was 8.98. The higher the ratio, the stronger the company's financial strength is.

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

HNWAF' s Interest Coverage Range Over the Past 10 Years
Min: 4.97   Med: 7.39   Max: 15.31
Current: 7.72


HNWAF's Interest Coverage is ranked better than
57.14% of 427 companies
in the Conglomerates industry
Industry Median: 5.33 vs HNWAF: 7.72

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


Hanwa Co  (OTCPK:HNWAF) 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 .


Hanwa Co Interest Coverage Related Terms


Hanwa Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Hanwa Co'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.

Hanwa Co Interest Coverage Chart

Hanwa Co 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 15.31 6.43 5.68 7.06 7.72

Hanwa Co 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 7.14 7.79 6.92 7.19 8.98

HNWAF vs HON, MMM: Interest Coverage Comparison

For the Conglomerates subindustry, Hanwa 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.


Hanwa Co Interest Coverage vs Conglomerates Industry

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

* The bar in red indicates where Hanwa Co's Interest Coverage falls into.


HNWAF
57GF Score
Hanwa Co Ltd HNWAF
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hanwa 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:

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.

Hanwa Co'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, Hanwa Co's Interest Expense was $-48 Mil. Its Operating Income was $368 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,723 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*368.307/-47.73
=7.72

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

Here, for the three months ended in Mar. 2026, Hanwa Co's Interest Expense was $-12 Mil. Its Operating Income was $107 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,723 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*106.956/-11.911
=8.98

* 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 8.98 mean?
Hanwa Co (HNWAF) has a Interest Coverage of 8.98 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hanwa Co and its competitors. This is 22% above median its historical median of 7.39. Over the past decade, Hanwa Co's Interest Coverage has ranged from 4.97 to 15.31. According to the industry distribution chart, Hanwa Co ranks #183 out of 427 companies in the Conglomerates industry, placing it in the top 42.9%.
Is Hanwa Co's Interest Coverage too high?
Hanwa Co's current Interest Coverage of 8.98 is 22% above median its 10-year median of 7.39. Over the past 10 years, this metric has ranged from a low of 4.97 to a high of 15.31. The Conglomerates industry median Interest Coverage is 5.33. Hanwa Co's value of 8.98 is 68.5% above this industry median. Based on the distribution chart, Hanwa Co ranks #183 out of 427 companies in the Conglomerates industry, which is above the industry midpoint. Overall, Hanwa Co has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hanwa Co's Interest Coverage compare to HON and MMM?
According to the Conglomerates industry distribution chart, Hanwa Co ranks #183 out of 427 companies for Interest Coverage. This puts Hanwa Co in the upper half of its industry. The industry median Interest Coverage is 5.33. Hanwa Co's value of 8.98 is 68.5% above this benchmark. Historically, Hanwa Co's own Interest Coverage has ranged from 4.97 to 15.31 over the past decade. While the company's 10-year median is 7.39 vs. the industry median of 5.33, Hanwa 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 Conglomerates company?
The median Interest Coverage among Conglomerates companies is 5.33, based on 427 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. Hanwa Co's current Interest Coverage of 8.98 is 68.5% 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 Hanwa Co and its competitors. For the Conglomerates industry, the median Interest Coverage is 5.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hanwa Co's current Interest Coverage is 8.98, which is 22% above median its own 10-year median of 7.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hanwa Co stock overvalued right now?
Based on GuruFocus' analysis, Hanwa Co (HNWAF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.60, compared to a current price of $10.79 — trading 42% above its estimated fair value. The current Interest Coverage is 8.98, which is 22% above median its 10-year median of 7.39 and 68.5% above the Conglomerates industry median of 5.33. Hanwa Co's overall GF Score™ is 57/100 with 3 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 Hanwa Co (HNWAF), the current Interest Coverage is 8.98 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 Hanwa Co (HNWAF) Overvalued in 2026?

Based on GuruFocus' analysis, Hanwa Co stock appears to be overvalued. The current stock price of $10.79 is trading 42% above its estimated GF Value™ of $7.60. GuruFocus considers Hanwa Co to be Significantly Overvalued.

Key valuation signals for HNWAF:

  • Interest Coverage: 8.98 (22% above median its 10-year median of 7.39)
  • GF Value™: $7.60 vs. price of $10.79 (42% above fair value)
  • GF Score™: 57/100 with 3 warning signs
  • Industry Position: 68.5% above the Conglomerates median (#183 of 427)

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


Hanwa Co Business Description

Other Exchanges 8078:JapanHW4:Germany
Address 1-13-1, Tsukiji, Chuo-ku, Ginza Shochiku Square Building, Tokyo, JPN, 104-8429
Hanwa Co Ltd is a Japan-based trading company with seven segments. The steel segment handles steel products and building materials. The metals and alloys segment supplies chromium, manganese, and other metals. The nonferrous metals segment recycles aluminum, copper, nickel, and chromium. The food products segment handles seafood. The petroleum and chemicals segment trades petroleum products and others. The overseas sales subsidiaries segment comprises Hanwa's overseas subsidiaries in North America and Asia. The other business segment imports forest products and handles amusement facilities and industrial machinery. Steel, petroleum and chemicals, and metals and alloys are the three largest segments by revenue contribution. Hanwa generates most of its revenue from Japanese domestic market.
57GF Score

Get the complete analysis for HNWAF

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

$10.79
Price
$7.60
GF Value