Elma Electronic AGLTS:0QKS 63 Interest Coverage is 5.83 as of Dec. 2025, which is 55% below its 10-year median of 12.97. GuruFocus rates LTS:0QKS with a GF Score™ of 63/100 and a GF Value™ of CHF374.16. The stock has 9 warning signs investors should review. Among 1,672 Hardware companies, Elma Electronic AG ranks better than 53.29% 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. Elma Electronic AG's
Operating Income
for the
six
months ended in Dec. 2025 was CHF1.1 Mil. Elma Electronic AG's Interest Expense for the
six
months ended in Dec. 2025 was CHF-0.2 Mil.
Elma Electronic AG's interest coverage for the quarter that ended in Dec. 2025 was 5.83.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Elma Electronic AG's Interest Coverage or its related term are showing as below:
LTS:0QKS'
s Interest Coverage Range Over the Past 10 Years
Min: 6.42 Med: 12.97 Max: 22.7
Current: 16.31
LTS:0QKS's Interest Coverage is ranked better than 53.29% of 1672
companies
in the Hardware industry
Industry Median: 13.73
vs LTS:0QKS: 16.31
Elma Electronic AG (LTS:0QKS) 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 .
Elma Electronic AG Interest Coverage Related Terms
Elma Electronic AG Interest Coverage Historical Data
* Premium members only.
The historical data trend for Elma Electronic AG'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.
LTS:0QKS vs SNDK, DELL, STX: Interest Coverage Comparison
For the Computer Hardware subindustry, Elma Electronic AG'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.
Elma Electronic AG Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Elma Electronic AG's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Elma Electronic AG'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.
Elma Electronic AG (LTS:0QKS) has a Interest Coverage of 5.83 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Elma Electronic AG and its competitors. This is 55% below median its historical median of 12.97. Over the past decade, Elma Electronic AG's Interest Coverage has ranged from 6.42 to 22.70. According to the industry distribution chart, Elma Electronic AG ranks #781 out of 1672 companies in the Hardware industry, placing it in the top 46.7%.
Is Elma Electronic AG's Interest Coverage too high?
Elma Electronic AG's current Interest Coverage of 5.83 is 55% below median its 10-year median of 12.97. Over the past 10 years, this metric has ranged from a low of 6.42 to a high of 22.70. The Hardware industry median Interest Coverage is 13.73. Elma Electronic AG's value of 5.83 is 57.5% below this industry median. Based on the distribution chart, Elma Electronic AG ranks #781 out of 1672 companies in the Hardware industry, which is above the industry midpoint. Overall, Elma Electronic AG has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does Elma Electronic AG's Interest Coverage compare to SNDK and DELL?
According to the Hardware industry distribution chart, Elma Electronic AG ranks #781 out of 1672 companies for Interest Coverage. This puts Elma Electronic AG in the upper half of its industry. The industry median Interest Coverage is 13.73. Elma Electronic AG's value of 5.83 is 57.5% below this benchmark. Historically, Elma Electronic AG's own Interest Coverage has ranged from 6.42 to 22.70 over the past decade. While the company's 10-year median is 12.97 vs. the industry median of 13.73, Elma Electronic AG 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 13.73, based on 1,672 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. Elma Electronic AG's current Interest Coverage of 5.83 is 57.5% 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 Elma Electronic AG and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elma Electronic AG's current Interest Coverage is 5.83, which is 55% below median its own 10-year median of 12.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elma Electronic AG stock overvalued right now?
Elma Electronic AG (LTS:0QKS) has a current Interest Coverage of 5.83. The stock's GF Value™ is CHF374.16, compared to a current price of CHF438.00 — trading 17.1% above its estimated fair value. The current Interest Coverage is 5.83, which is 55% below median its 10-year median of 12.97 and 57.5% below the Hardware industry median of 13.73. Elma Electronic AG's overall GF Score™ is 63/100 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 Elma Electronic AG (LTS:0QKS), the current Interest Coverage is 5.83 as of Dec. 2025. 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 Elma Electronic AG (LTS:0QKS) Overvalued in 2026?
Based on GuruFocus' analysis, Elma Electronic AG stock appears to be overvalued.
The current stock price of CHF438.00 is trading 17.1% above its estimated GF Value™ of CHF374.16.
Key valuation signals for LTS:0QKS:
Interest Coverage: 5.83 (55% below median its 10-year median of 12.97)
GF Value™: CHF374.16 vs. price of CHF438.00 (17.1% above fair value)
Industry Position: 57.5% below the Hardware median (#781 of 1672)
No single metric tells the full story. See the LTS:0QKS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elma Electronic AG is a Switzerland-based company. It acts as a manufacturer of electronic packaging products for the embedded systems market from components, backplanes, storage boards and chassis platforms to fully integrated systems. The product line of the company includes embedded boards such as mass storage, ethernet and PCIe switches, architecture solutions, embedded computing systems, system accessories, and rack level services. It also offers engineering services, contract manufacturing, system integration, customization and other services.
63GF Score
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