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Murata Manufacturing CoMRAAF +14.56%70 Interest Coverage is 63.01 as of Mar. 2026, which is 87% below its 10-year median of 502.31. GuruFocus rates MRAAF with a GF Score™ of 70/100 and a GF Value™ of $22.06 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,669 Hardware companies, Murata Manufacturing Co ranks better than 80.17% 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. Murata Manufacturing Co's
Operating Income
for the
three
months ended in Mar. 2026 was $497 Mil. Murata Manufacturing Co's Interest Expense for the
three
months ended in Mar. 2026 was $-8 Mil.
Murata Manufacturing Co's interest coverage for the quarter that ended in Mar. 2026 was 63.01.
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. Murata Manufacturing Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Murata Manufacturing Co's Interest Coverage or its related term are showing as below:
MRAAF'
s Interest Coverage Range Over the Past 10 Years
Min: 48.24 Med: 502.31 Max: 1333.52
Current: 88.38
MRAAF's Interest Coverage is ranked better than 80.17% of 1669
companies
in the Hardware industry
Industry Median: 13.99
vs MRAAF: 88.38
Murata Manufacturing Co (OTCPK:MRAAF) 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 .
Murata Manufacturing Co Interest Coverage Related Terms
Murata Manufacturing Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Murata Manufacturing 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.
MRAAF vs APH, GLW, TEL: Interest Coverage Comparison
For the Electronic Components subindustry, Murata Manufacturing 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.
Murata Manufacturing Co Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Murata Manufacturing Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Murata Manufacturing Co's Interest Coverage falls into.
Murata Manufacturing 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:
* 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.
Murata Manufacturing Co (MRAAF) has a Interest Coverage of 63.01 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Murata Manufacturing Co and its competitors. This is 87% below median its historical median of 502.31. Over the past decade, Murata Manufacturing Co's Interest Coverage has ranged from 48.24 to 1,333.52. According to the industry distribution chart, Murata Manufacturing Co ranks #331 out of 1669 companies in the Hardware industry, placing it in the top 19.8%.
Is Murata Manufacturing Co's Interest Coverage too high?
Murata Manufacturing Co's current Interest Coverage of 63.01 is 87% below median its 10-year median of 502.31. Over the past 10 years, this metric has ranged from a low of 48.24 to a high of 1,333.52. The Hardware industry median Interest Coverage is 13.99. Murata Manufacturing Co's value of 63.01 is 350.4% above this industry median. Based on the distribution chart, Murata Manufacturing Co ranks #331 out of 1669 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Murata Manufacturing Co has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Murata Manufacturing Co's Interest Coverage compare to APH and GLW?
According to the Hardware industry distribution chart, Murata Manufacturing Co ranks #331 out of 1669 companies for Interest Coverage. This places Murata Manufacturing Co in the top 20% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 13.99. Murata Manufacturing Co's value of 63.01 is 350.4% above this benchmark. Historically, Murata Manufacturing Co's own Interest Coverage has ranged from 48.24 to 1,333.52 over the past decade. While the company's 10-year median is 502.31 vs. the industry median of 13.99, Murata Manufacturing 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.99, based on 1,669 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. Murata Manufacturing Co's current Interest Coverage of 63.01 is 350.4% 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 Murata Manufacturing Co and its competitors. For the Hardware industry, the median Interest Coverage is 13.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Murata Manufacturing Co's current Interest Coverage is 63.01, which is 87% below median its own 10-year median of 502.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Murata Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Murata Manufacturing Co (MRAAF) is currently considered Significantly Overvalued. The stock's GF Value™ is $22.06, compared to a current price of $44.46 — trading 101.6% above its estimated fair value. The current Interest Coverage is 63.01, which is 87% below median its 10-year median of 502.31 and 350.4% above the Hardware industry median of 13.99. Murata Manufacturing Co's overall GF Score™ is 70/100 with 2 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 Murata Manufacturing Co (MRAAF), the current Interest Coverage is 63.01 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 Murata Manufacturing Co (MRAAF) Overvalued in 2026?
Based on GuruFocus' analysis, Murata Manufacturing Co stock appears to be overvalued.
The current stock price of $44.46 is trading 101.6% above its estimated GF Value™ of $22.06.
GuruFocus considers Murata Manufacturing Co to be Significantly Overvalued.
Key valuation signals for MRAAF:
Interest Coverage: 63.01 (87% below median its 10-year median of 502.31)
GF Value™: $22.06 vs. price of $44.46 (101.6% above fair value)
Industry Position: 350.4% above the Hardware median (#331 of 1669)
No single metric tells the full story. See the MRAAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Murata Manufacturing produces passive components for electronic devices. Passive components are necessary for all electronic circuits, used to enable wireless communication, store electricity and handle electric flow, remove electromagnetic noise from circuits, and so on. Thus, passive components are imperative for electronic circuits. For instance, one high-end smartphone contains more than 1,000 passive components. Murata Manufacturing is the world's leading supplier of passive components, such as MLCC and SAW filters.
70GF Score
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