Aichi Electric (NGO:6623) Interest Coverage: 37.62 (As of Mar. 2026) — Near Median


NGO:6623 Aichi Electric NGO:6623
67 GF Score
Price 円9,480.00
GF Value 円4,873.17
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Aichi Electric Interest Coverage?

Aichi Electric NGO:6623 +2.93% 67 Interest Coverage is 37.62 as of Mar. 2026, which is 5% below its 10-year median of 39.66. GuruFocus rates NGO:6623 with a GF Score™ of 67/100 and a GF Value™ of 円4,873.17 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,325 Industrial Products companies, Aichi Electric ranks better than 65.59% 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. Aichi Electric's Operating Income for the six months ended in Mar. 2026 was 円6,019 Mil. Aichi Electric's Interest Expense for the six months ended in Mar. 2026 was 円-160 Mil. Aichi Electric's interest coverage for the quarter that ended in Mar. 2026 was 37.62. The higher the ratio, the stronger the company's financial strength is.

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

NGO:6623' s Interest Coverage Range Over the Past 10 Years
Min: 28.29   Med: 39.66   Max: 74.92
Current: 33.69


NGO:6623's Interest Coverage is ranked better than
65.59% of 2325 companies
in the Industrial Products industry
Industry Median: 14.87 vs NGO:6623: 33.69

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


Aichi Electric  (NGO:6623) 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 .


Aichi Electric Interest Coverage Related Terms


Aichi Electric Interest Coverage Historical Data

* Premium members only.

The historical data trend for Aichi Electric'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.

Aichi Electric Interest Coverage Chart

Aichi Electric 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 74.92 54.77 31.10 28.69 33.69

Aichi Electric Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 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 31.16 29.53 27.99 30.02 37.62

NGO:6623 vs VRT, BE: Interest Coverage Comparison

For the Electrical Equipment & Parts subindustry, Aichi Electric'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.


Aichi Electric Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Aichi Electric's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Aichi Electric's Interest Coverage falls into.


NGO:6623
67GF Score
Aichi Electric NGO:6623
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Aichi Electric 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.

Aichi Electric'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, Aichi Electric's Interest Expense was 円-331 Mil. Its Operating Income was 円11,153 Mil. And its Long-Term Debt & Capital Lease Obligation was 円11,087 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*11153/-331
=33.69

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

Here, for the six months ended in Mar. 2026, Aichi Electric's Interest Expense was 円-160 Mil. Its Operating Income was 円6,019 Mil. And its Long-Term Debt & Capital Lease Obligation was 円11,087 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*6019/-160
=37.62

* 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 37.62 mean?
Aichi Electric (NGO:6623) has a Interest Coverage of 37.62 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Aichi Electric and its competitors. This is near median its historical median of 39.66. Over the past decade, Aichi Electric's Interest Coverage has ranged from 28.29 to 74.92. According to the industry distribution chart, Aichi Electric ranks #800 out of 2325 companies in the Industrial Products industry, placing it in the top 34.4%.
Is Aichi Electric's Interest Coverage too high?
Aichi Electric's current Interest Coverage of 37.62 is near median its 10-year median of 39.66. Over the past 10 years, this metric has ranged from a low of 28.29 to a high of 74.92. The Industrial Products industry median Interest Coverage is 14.87. Aichi Electric's value of 37.62 is 153% above this industry median. Based on the distribution chart, Aichi Electric ranks #800 out of 2325 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Aichi Electric has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aichi Electric's Interest Coverage compare to VRT and BE?
According to the Industrial Products industry distribution chart, Aichi Electric ranks #800 out of 2325 companies for Interest Coverage. This puts Aichi Electric in the upper half of its industry. The industry median Interest Coverage is 14.87. Aichi Electric's value of 37.62 is 153% above this benchmark. Historically, Aichi Electric's own Interest Coverage has ranged from 28.29 to 74.92 over the past decade. While the company's 10-year median is 39.66 vs. the industry median of 14.87, Aichi Electric 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 14.87, based on 2,325 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. Aichi Electric's current Interest Coverage of 37.62 is 153% 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 Aichi Electric and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aichi Electric's current Interest Coverage is 37.62, which is near median its own 10-year median of 39.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aichi Electric stock overvalued right now?
Based on GuruFocus' analysis, Aichi Electric (NGO:6623) is currently considered Significantly Overvalued. The stock's GF Value™ is 円4,873.17, compared to a current price of 円9,480.00 — trading 94.5% above its estimated fair value. The current Interest Coverage is 37.62, which is near median its 10-year median of 39.66 and 153% above the Industrial Products industry median of 14.87. Aichi Electric's overall GF Score™ is 67/100 with 5 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 Aichi Electric (NGO:6623), the current Interest Coverage is 37.62 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 Aichi Electric (NGO:6623) Overvalued in 2026?

Based on GuruFocus' analysis, Aichi Electric stock appears to be overvalued. The current stock price of 円9,480.00 is trading 94.5% above its estimated GF Value™ of 円4,873.17. GuruFocus considers Aichi Electric to be Significantly Overvalued.

Key valuation signals for NGO:6623:

  • Interest Coverage: 37.62 (near median its 10-year median of 39.66)
  • GF Value™: 円4,873.17 vs. price of 円9,480.00 (94.5% above fair value)
  • GF Score™: 67/100 with 5 warning signs
  • Industry Position: 153% above the Industrial Products median (#800 of 2325)

No single metric tells the full story. See the NGO:6623 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Aichi Electric Business Description

Address 1,Aichi-cho, Kasugai, JPN, 486-8666
Aichi Electric Co., Ltd is engaged in providing electric power products in Japan. The company's products offerings are A transformer, Motor, Applied equipment, Plant equipment, Power conversion equipment, and others. Its segments include: Power Equipment; and Rotating Machines.
67GF Score

Get the complete analysis for NGO:6623

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

円9,480.00
Price
円4,873.17
GF Value