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SubaruMEX:7270N 81 Interest Coverage is 10.24 as of Jun. 2026, which is 33% below its 10-year median of 15.34. GuruFocus rates MEX:7270N with a GF Score™ of 81/100 and a GF Value™ of MXN451.17. The stock has 8 warning signs investors should review. Among 1,062 Vehicles & Parts companies, Subaru ranks better than 83.71% 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. Subaru's
Operating Income
for the
three
months ended in Jun. 2026 was MXN4,617 Mil. Subaru's Interest Expense for the
three
months ended in Jun. 2026 was MXN-451 Mil.
Subaru's interest coverage for the quarter that ended in Jun. 2026 was 10.24.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Subaru Corp has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Subaru's Interest Coverage or its related term are showing as below:
MEX:7270N'
s Interest Coverage Range Over the Past 10 Years
Min: 2.85 Med: 15.34 Max: 275.16
Current: 65.48
MEX:7270N's Interest Coverage is ranked better than 83.71% of 1062
companies
in the Vehicles & Parts industry
Industry Median: 8.29
vs MEX:7270N: 65.48
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 .
Subaru Interest Coverage Related Terms
Subaru Interest Coverage Historical Data
* Premium members only.
The historical data trend for Subaru'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.
MEX:7270N vs TSLA, GM, F: Interest Coverage Comparison
For the Auto Manufacturers subindustry, Subaru'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.
Subaru Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Subaru's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Subaru'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.
Subaru (MEX:7270N) has a Interest Coverage of 10.24 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Subaru and its competitors. This is 33% below median its historical median of 15.34. Over the past decade, Subaru's Interest Coverage has ranged from 2.85 to 275.16. According to the industry distribution chart, Subaru ranks #173 out of 1062 companies in the Vehicles & Parts industry, placing it in the top 16.3%.
Is Subaru's Interest Coverage too high?
Subaru's current Interest Coverage of 10.24 is 33% below median its 10-year median of 15.34. Over the past 10 years, this metric has ranged from a low of 2.85 to a high of 275.16. The Vehicles & Parts industry median Interest Coverage is 8.29. Subaru's value of 10.24 is 23.5% above this industry median. Based on the distribution chart, Subaru ranks #173 out of 1062 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Subaru has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Subaru's Interest Coverage compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Subaru ranks #173 out of 1062 companies for Interest Coverage. This places Subaru in the top 16% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.29. Subaru's value of 10.24 is 23.5% above this benchmark. Historically, Subaru's own Interest Coverage has ranged from 2.85 to 275.16 over the past decade. While the company's 10-year median is 15.34 vs. the industry median of 8.29, Subaru 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.29, based on 1,062 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. Subaru's current Interest Coverage of 10.24 is 23.5% 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 Subaru and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Subaru's current Interest Coverage is 10.24, which is 33% below median its own 10-year median of 15.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Subaru stock overvalued right now?
Subaru (MEX:7270N) has a current Interest Coverage of 10.24. The stock's GF Value™ is MXN451.17, compared to a current price of MXN378.84 — trading 16% below its estimated fair value. The current Interest Coverage is 10.24, which is 33% below median its 10-year median of 15.34 and 23.5% above the Vehicles & Parts industry median of 8.29. Subaru's overall GF Score™ is 81/100 with 8 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 Subaru (MEX:7270N), the current Interest Coverage is 10.24 as of Jun. 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 Subaru (MEX:7270N) Overvalued in 2026?
Based on GuruFocus' analysis, Subaru stock appears to be undervalued.
The current stock price of MXN378.84 is trading 16% below its estimated GF Value™ of MXN451.17.
Key valuation signals for MEX:7270N:
Interest Coverage: 10.24 (33% below median its 10-year median of 15.34)
GF Value™: MXN451.17 vs. price of MXN378.84 (16% below fair value)
Industry Position: 23.5% above the Vehicles & Parts median (#173 of 1062)
No single metric tells the full story. See the MEX:7270N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Subaru Corp is a Japan-based company engaged in the automobile manufacturing business. The company operates through three segments: Automobile Business Unit, Aerospace, and Other Businesses. The Aerospace segment manufactures, sells, and repairs aircraft, space-related equipment, and parts. The Automobile segment manufactures, sells, and repairs automobiles and their parts, while also engaging in joint development of sports cars and electric vehicles with Toyota Motor Corporation, and receiving OEM supply of mini and compact cars from Daihatsu Motor. The Others segment is engaged in real estate leasing. It generates the majority of its revenue from the Automobile segment.
81GF Score
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