AITSE:4388 +0.83%78 Interest Coverage is 162.23 as of Mar. 2026, which is 82% below its 10-year median of 882.91. GuruFocus rates TSE:4388 with a GF Score™ of 78/100 and a GF Value™ of 円1,079.60 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,672 Hardware companies, AI ranks better than 75.18% 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. AI's
Operating Income
for the
six
months ended in Mar. 2026 was 円138 Mil. AI's Interest Expense for the
six
months ended in Mar. 2026 was 円-1 Mil.
AI's interest coverage for the quarter that ended in Mar. 2026 was 162.23.
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. AI Inc has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for AI's Interest Coverage or its related term are showing as below:
TSE:4388'
s Interest Coverage Range Over the Past 10 Years
Min: 59.17 Med: 882.91 Max: 5244.18
Current: 60.03
TSE:4388's Interest Coverage is ranked better than 75.18% of 1672
companies
in the Hardware industry
Industry Median: 13.73
vs TSE:4388: 60.03
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 .
AI Interest Coverage Related Terms
AI Interest Coverage Historical Data
* Premium members only.
The historical data trend for AI'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.
TSE:4388 vs CSCO, CIEN, MSI: Interest Coverage Comparison
For the Communication Equipment subindustry, AI'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.
AI Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, AI's Interest Coverage distribution charts can be found below:
* The bar in red indicates where AI'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.
AI (TSE:4388) has a Interest Coverage of 162.23 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on AI and its competitors. This is 82% below median its historical median of 882.91. Over the past decade, AI's Interest Coverage has ranged from 59.17 to 5,244.18. According to the industry distribution chart, AI ranks #415 out of 1672 companies in the Hardware industry, placing it in the top 24.8%.
Is AI's Interest Coverage too high?
AI's current Interest Coverage of 162.23 is 82% below median its 10-year median of 882.91. Over the past 10 years, this metric has ranged from a low of 59.17 to a high of 5,244.18. The Hardware industry median Interest Coverage is 13.73. AI's value of 162.23 is 1081.6% above this industry median. Based on the distribution chart, AI ranks #415 out of 1672 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, AI has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AI's Interest Coverage compare to CSCO and CIEN?
According to the Hardware industry distribution chart, AI ranks #415 out of 1672 companies for Interest Coverage. This places AI in the top 25% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 13.73. AI's value of 162.23 is 1081.6% above this benchmark. Historically, AI's own Interest Coverage has ranged from 59.17 to 5,244.18 over the past decade. While the company's 10-year median is 882.91 vs. the industry median of 13.73, AI 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 13.73, 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. AI's current Interest Coverage of 162.23 is 1081.6% 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 AI 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. AI's current Interest Coverage is 162.23, which is 82% below median its own 10-year median of 882.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AI stock overvalued right now?
Based on GuruFocus' analysis, AI (TSE:4388) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,079.60, compared to a current price of 円364.00 — trading 66.3% below its estimated fair value. The current Interest Coverage is 162.23, which is 82% below median its 10-year median of 882.91 and 1081.6% above the Hardware industry median of 13.73. AI's overall GF Score™ is 78/100 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 AI (TSE:4388), the current Interest Coverage is 162.23 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 AI (TSE:4388) Overvalued in 2026?
Based on GuruFocus' analysis, AI stock appears to be undervalued.
The current stock price of 円364.00 is trading 66.3% below its estimated GF Value™ of 円1,079.60.
GuruFocus considers AI to be Significantly Undervalued.
Key valuation signals for TSE:4388:
Interest Coverage: 162.23 (82% below median its 10-year median of 882.91)
GF Value™: 円1,079.60 vs. price of 円364.00 (66.3% below fair value)
Industry Position: 1081.6% above the Hardware median (#415 of 1672)
No single metric tells the full story. See the TSE:4388 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AI Inc provides and develops voice synthesis systems and consults related business services in Japan. The company provides a high-quality speech synthesis engine capable of freely synthesizing speech with more human-like natural speech, employing a corpus-based speech synthesis method that combines human voice rather than conventional machine sound. The company's product includes AlTalk, AlTalk SDK, AlTalk Server, and AlTalk Custom Voice.
78GF Score
Get the complete analysis for TSE:4388
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:4388 has been successfully added to your 
