Sumitomo Electric IndustriesSMTOY -4.56%76 Interest Coverage is 20.70 as of Dec. 2025, which is 7% above its 10-year median of 19.36. GuruFocus rates SMTOY with a GF Score™ of 76/100 and a GF Value™ of $18.81 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,066 Vehicles & Parts companies, Sumitomo Electric Industries ranks better than 65.85% 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. Sumitomo Electric Industries's
Operating Income
for the
three
months ended in Dec. 2025 was $757 Mil. Sumitomo Electric Industries's Interest Expense for the
three
months ended in Dec. 2025 was $-37 Mil.
Sumitomo Electric Industries's interest coverage for the quarter that ended in Dec. 2025 was 20.70.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Sumitomo Electric Industries's Interest Coverage or its related term are showing as below:
SMTOY'
s Interest Coverage Range Over the Past 10 Years
Min: 7.73 Med: 19.36 Max: 31.4
Current: 17.63
SMTOY's Interest Coverage is ranked better than 65.85% of 1066
companies
in the Vehicles & Parts industry
Industry Median: 8.295
vs SMTOY: 17.63
Sumitomo Electric Industries (OTCPK:SMTOY) 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 .
Sumitomo Electric Industries Interest Coverage Related Terms
Sumitomo Electric Industries Interest Coverage Historical Data
* 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.
Sumitomo Electric Industries Interest Coverage Chart
For the Auto Parts subindustry, Sumitomo Electric Industries'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.
Sumitomo Electric Industries Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sumitomo Electric Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Sumitomo Electric Industries's Interest Coverage falls into.
Sumitomo Electric Industries 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.
Sumitomo Electric Industries (SMTOY) has a Interest Coverage of 20.70 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sumitomo Electric Industries and its competitors. This is near median its historical median of 19.36. Over the past decade, Sumitomo Electric Industries' Interest Coverage has ranged from 7.73 to 31.40. According to the industry distribution chart, Sumitomo Electric Industries ranks #364 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 34.1%.
Is Sumitomo Electric Industries' Interest Coverage too high?
Sumitomo Electric Industries' current Interest Coverage of 20.70 is near median its 10-year median of 19.36. Over the past 10 years, this metric has ranged from a low of 7.73 to a high of 31.40. The Vehicles & Parts industry median Interest Coverage is 8.30. Sumitomo Electric Industries' value of 20.70 is 149.5% above this industry median. Based on the distribution chart, Sumitomo Electric Industries ranks #364 out of 1066 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Sumitomo Electric Industries has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Electric Industries' Interest Coverage compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Sumitomo Electric Industries ranks #364 out of 1066 companies for Interest Coverage. This puts Sumitomo Electric Industries in the upper half of its industry. The industry median Interest Coverage is 8.30. Sumitomo Electric Industries' value of 20.70 is 149.5% above this benchmark. Historically, Sumitomo Electric Industries' own Interest Coverage has ranged from 7.73 to 31.40 over the past decade. While the company's 10-year median is 19.36 vs. the industry median of 8.30, Sumitomo Electric Industries 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 8.30, based on 1,066 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. Sumitomo Electric Industries's current Interest Coverage of 20.70 is 149.5% 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 Sumitomo Electric Industries and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Electric Industries's current Interest Coverage is 20.70, which is near median its own 10-year median of 19.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Electric Industries stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Electric Industries (SMTOY) is currently considered Significantly Overvalued. The stock's GF Value™ is $18.81, compared to a current price of $75.18 — trading 299.7% above its estimated fair value. The current Interest Coverage is 20.70, which is near median its 10-year median of 19.36 and 149.5% above the Vehicles & Parts industry median of 8.30. Sumitomo Electric Industries' overall GF Score™ is 76/100 with 4 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 Sumitomo Electric Industries (SMTOY), the current Interest Coverage is 20.70 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 Sumitomo Electric Industries (SMTOY) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Electric Industries stock appears to be overvalued.
The current stock price of $75.18 is trading 299.7% above its estimated GF Value™ of $18.81.
GuruFocus considers Sumitomo Electric Industries to be Significantly Overvalued.
Key valuation signals for SMTOY:
Interest Coverage: 20.70 (near median its 10-year median of 19.36)
GF Value™: $18.81 vs. price of $75.18 (299.7% above fair value)
Industry Position: 149.5% above the Vehicles & Parts median (#364 of 1066)
No single metric tells the full story. See the SMTOY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Electric Industries Ltd manufactures and sells electric wires and cables, and other products. The company operates through five segments. The Automotive related business covers wire harnesses, anti-vibration rubber, hoses, electrical parts, and traffic control systems. The Electronics related business provides electronic wires, flexible printed circuits, fluoropolymer products, and metal components. The Environment and Energy related business handles power transmission equipment, substation systems, vacuum and beam equipment, and conductive products. The Industrial Materials business includes steel wire, tools, optical components, and sintered parts. The Information and Communication business offers fiber optic cables, communication equipment, and optical devices.
76GF Score
Get the complete analysis for SMTOY
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