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Shinhokoku MaterialTSE:5542 -1.26%72 Interest Coverage is 223.96 as of Jun. 2026, which is 158% above its 10-year median of 86.64. GuruFocus rates TSE:5542 with a GF Score™ of 72/100 and a GF Value™ of 円640.68 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 464 Steel companies, Shinhokoku Material ranks better than 88.79% 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. Shinhokoku Material's
Operating Income
for the
three
months ended in Jun. 2026 was 円272 Mil. Shinhokoku Material's Interest Expense for the
three
months ended in Jun. 2026 was 円-1 Mil.
Shinhokoku Material's interest coverage for the quarter that ended in Jun. 2026 was 223.96.
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. Shinhokoku Material Corp has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Shinhokoku Material's Interest Coverage or its related term are showing as below:
TSE:5542'
s Interest Coverage Range Over the Past 10 Years
Min: 29.85 Med: 86.64 Max: 146.32
Current: 109.28
TSE:5542's Interest Coverage is ranked better than 88.79% of 464
companies
in the Steel industry
Industry Median: 4.72
vs TSE:5542: 109.28
Shinhokoku Material (TSE:5542) 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 .
Shinhokoku Material Interest Coverage Related Terms
Shinhokoku Material Interest Coverage Historical Data
* Premium members only.
The historical data trend for Shinhokoku Material'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:5542 vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Shinhokoku Material'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.
Shinhokoku Material Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Shinhokoku Material's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Shinhokoku Material'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.
Shinhokoku Material (TSE:5542) has a Interest Coverage of 223.96 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Shinhokoku Material and its competitors. This is 158% above median its historical median of 86.64. Over the past decade, Shinhokoku Material's Interest Coverage has ranged from 29.85 to 146.32. According to the industry distribution chart, Shinhokoku Material ranks #52 out of 464 companies in the Steel industry, placing it in the top 11.2%.
Is Shinhokoku Material's Interest Coverage too high?
Shinhokoku Material's current Interest Coverage of 223.96 is 158% above median its 10-year median of 86.64. Over the past 10 years, this metric has ranged from a low of 29.85 to a high of 146.32. The Steel industry median Interest Coverage is 4.72. Shinhokoku Material's value of 223.96 is 4644.9% above this industry median. Based on the distribution chart, Shinhokoku Material ranks #52 out of 464 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Shinhokoku Material has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shinhokoku Material's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Shinhokoku Material ranks #52 out of 464 companies for Interest Coverage. This places Shinhokoku Material in the top 11% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 4.72. Shinhokoku Material's value of 223.96 is 4644.9% above this benchmark. Historically, Shinhokoku Material's own Interest Coverage has ranged from 29.85 to 146.32 over the past decade. While the company's 10-year median is 86.64 vs. the industry median of 4.72, Shinhokoku Material 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 Steel company?
The median Interest Coverage among Steel companies is 4.72, based on 464 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. Shinhokoku Material's current Interest Coverage of 223.96 is 4644.9% 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 Shinhokoku Material and its competitors. For the Steel industry, the median Interest Coverage is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shinhokoku Material's current Interest Coverage is 223.96, which is 158% above median its own 10-year median of 86.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinhokoku Material stock overvalued right now?
Based on GuruFocus' analysis, Shinhokoku Material (TSE:5542) is currently considered Significantly Overvalued. The stock's GF Value™ is 円640.68, compared to a current price of 円943.00 — trading 47.2% above its estimated fair value. The current Interest Coverage is 223.96, which is 158% above median its 10-year median of 86.64 and 4644.9% above the Steel industry median of 4.72. Shinhokoku Material's overall GF Score™ is 72/100 with 3 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 Shinhokoku Material (TSE:5542), the current Interest Coverage is 223.96 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 Shinhokoku Material (TSE:5542) Overvalued in 2026?
Based on GuruFocus' analysis, Shinhokoku Material stock appears to be overvalued.
The current stock price of 円943.00 is trading 47.2% above its estimated GF Value™ of 円640.68.
GuruFocus considers Shinhokoku Material to be Significantly Overvalued.
Key valuation signals for TSE:5542:
Interest Coverage: 223.96 (158% above median its 10-year median of 86.64)
GF Value™: 円640.68 vs. price of 円943.00 (47.2% above fair value)
Industry Position: 4644.9% above the Steel median (#52 of 464)
No single metric tells the full story. See the TSE:5542 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shinhokoku Material Corp is a Japan-based company that engages in the manufacture and sale of special alloy industrial castings and precision processed products. The company has two business segments, which include the Special alloy business and the Real estate rental business. The company generates the majority of its revenue from the special alloy business segment, which produces parts for semiconductor and FPD manufacturing equipment, tools for manufacturing seamless steel pipes, electrical resistance materials, and special welding rods.
72GF Score
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