Japan EngineKDCLF 60 Interest Coverage is 88.25 as of Mar. 2026, which is 312% above its 10-year median of 21.44. GuruFocus rates KDCLF with a GF Score™ of 60/100 and a GF Value™ of $34.01 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,330 Industrial Products companies, Japan Engine ranks better than 84.72% 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. Japan Engine's
Operating Income
for the
three
months ended in Mar. 2026 was $5.9 Mil. Japan Engine's Interest Expense for the
three
months ended in Mar. 2026 was $-0.1 Mil.
Japan Engine's interest coverage for the quarter that ended in Mar. 2026 was 88.25.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Japan Engine's Interest Coverage or its related term are showing as below:
KDCLF'
s Interest Coverage Range Over the Past 10 Years
Min: 5.39 Med: 21.44 Max: 217.44
Current: 137.35
KDCLF's Interest Coverage is ranked better than 84.72% of 2330
companies
in the Industrial Products industry
Industry Median: 14.835
vs KDCLF: 137.35
Japan Engine (OTCPK:KDCLF) 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 .
Japan Engine Interest Coverage Related Terms
Japan Engine Interest Coverage Historical Data
* Premium members only.
The historical data trend for Japan Engine'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.
KDCLF vs GEV, ETN, PH: Interest Coverage Comparison
For the Specialty Industrial Machinery subindustry, Japan Engine'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.
Japan Engine Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Japan Engine's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Japan Engine'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.
Japan Engine (KDCLF) has a Interest Coverage of 88.25 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Japan Engine and its competitors. This is 312% above median its historical median of 21.44. Over the past decade, Japan Engine's Interest Coverage has ranged from 5.39 to 217.44. According to the industry distribution chart, Japan Engine ranks #356 out of 2330 companies in the Industrial Products industry, placing it in the top 15.3%.
Is Japan Engine's Interest Coverage too high?
Japan Engine's current Interest Coverage of 88.25 is 312% above median its 10-year median of 21.44. Over the past 10 years, this metric has ranged from a low of 5.39 to a high of 217.44. The Industrial Products industry median Interest Coverage is 14.84. Japan Engine's value of 88.25 is 494.9% above this industry median. Based on the distribution chart, Japan Engine ranks #356 out of 2330 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Engine has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Engine's Interest Coverage compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Japan Engine ranks #356 out of 2330 companies for Interest Coverage. This places Japan Engine in the top 15% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 14.84. Japan Engine's value of 88.25 is 494.9% above this benchmark. Historically, Japan Engine's own Interest Coverage has ranged from 5.39 to 217.44 over the past decade. While the company's 10-year median is 21.44 vs. the industry median of 14.84, Japan Engine 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 an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.84, based on 2,330 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. Japan Engine's current Interest Coverage of 88.25 is 494.9% 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 Japan Engine and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Engine's current Interest Coverage is 88.25, which is 312% above median its own 10-year median of 21.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Engine stock overvalued right now?
Based on GuruFocus' analysis, Japan Engine (KDCLF) is currently considered Significantly Overvalued. The stock's GF Value™ is $34.01, compared to a current price of $50.45 — trading 48.3% above its estimated fair value. The current Interest Coverage is 88.25, which is 312% above median its 10-year median of 21.44 and 494.9% above the Industrial Products industry median of 14.84. Japan Engine's overall GF Score™ is 60/100 with 1 warning sign 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 Japan Engine (KDCLF), the current Interest Coverage is 88.25 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 Japan Engine (KDCLF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Engine stock appears to be overvalued.
The current stock price of $50.45 is trading 48.3% above its estimated GF Value™ of $34.01.
GuruFocus considers Japan Engine to be Significantly Overvalued.
Key valuation signals for KDCLF:
Interest Coverage: 88.25 (312% above median its 10-year median of 21.44)
GF Value™: $34.01 vs. price of $50.45 (48.3% above fair value)
Industry Position: 494.9% above the Industrial Products median (#356 of 2330)
No single metric tells the full story. See the KDCLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Engine Corp is a Japanese company engaged in the production and sale of various types of UE diesel engines. It also manufactures machinery and equipment related to marine, factory automation and energy saving. The organization has a business presence in Japan and other countries.
60GF Score
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