Nichia Steel WorksTSE:5658 -1.14%70 Interest Coverage is 86.22 as of Mar. 2026, which is 48% above its 10-year median of 58.44. GuruFocus rates TSE:5658 with a GF Score™ of 70/100 and a GF Value™ of 円326.18 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,325 Industrial Products companies, Nichia Steel Works ranks better than 76.56% 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. Nichia Steel Works's
Operating Income
for the
six
months ended in Mar. 2026 was 円965 Mil. Nichia Steel Works's Interest Expense for the
six
months ended in Mar. 2026 was 円-11 Mil.
Nichia Steel Works's interest coverage for the quarter that ended in Mar. 2026 was 86.22.
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. Nichia Steel Works Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Nichia Steel Works's Interest Coverage or its related term are showing as below:
TSE:5658'
s Interest Coverage Range Over the Past 10 Years
Min: 8.11 Med: 58.44 Max: 110.64
Current: 65.74
TSE:5658's Interest Coverage is ranked better than 76.56% of 2325
companies
in the Industrial Products industry
Industry Median: 14.8
vs TSE:5658: 65.74
Nichia Steel Works (TSE:5658) 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 .
Nichia Steel Works Interest Coverage Related Terms
Nichia Steel Works Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nichia Steel Works'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:5658 vs SNA, RBC, LECO: Interest Coverage Comparison
For the Tools & Accessories subindustry, Nichia Steel Works'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.
Nichia Steel Works Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nichia Steel Works's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nichia Steel Works'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.
Nichia Steel Works (TSE:5658) has a Interest Coverage of 86.22 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nichia Steel Works and its competitors. This is 48% above median its historical median of 58.44. Over the past decade, Nichia Steel Works' Interest Coverage has ranged from 8.11 to 110.64. According to the industry distribution chart, Nichia Steel Works ranks #545 out of 2325 companies in the Industrial Products industry, placing it in the top 23.4%.
Is Nichia Steel Works' Interest Coverage too high?
Nichia Steel Works' current Interest Coverage of 86.22 is 48% above median its 10-year median of 58.44. Over the past 10 years, this metric has ranged from a low of 8.11 to a high of 110.64. The Industrial Products industry median Interest Coverage is 14.80. Nichia Steel Works' value of 86.22 is 482.6% above this industry median. Based on the distribution chart, Nichia Steel Works ranks #545 out of 2325 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Nichia Steel Works has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nichia Steel Works' Interest Coverage compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Nichia Steel Works ranks #545 out of 2325 companies for Interest Coverage. This places Nichia Steel Works in the top 23% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 14.80. Nichia Steel Works' value of 86.22 is 482.6% above this benchmark. Historically, Nichia Steel Works' own Interest Coverage has ranged from 8.11 to 110.64 over the past decade. While the company's 10-year median is 58.44 vs. the industry median of 14.80, Nichia Steel Works 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 14.80, 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. Nichia Steel Works's current Interest Coverage of 86.22 is 482.6% 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 Nichia Steel Works and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nichia Steel Works's current Interest Coverage is 86.22, which is 48% above median its own 10-year median of 58.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nichia Steel Works stock overvalued right now?
Based on GuruFocus' analysis, Nichia Steel Works (TSE:5658) is currently considered Fairly Valued. The stock's GF Value™ is 円326.18, compared to a current price of 円346.00 — trading 6.1% above its estimated fair value. The current Interest Coverage is 86.22, which is 48% above median its 10-year median of 58.44 and 482.6% above the Industrial Products industry median of 14.80. Nichia Steel Works' overall GF Score™ is 70/100 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 Nichia Steel Works (TSE:5658), the current Interest Coverage is 86.22 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 Nichia Steel Works (TSE:5658) Overvalued in 2026?
Based on GuruFocus' analysis, Nichia Steel Works stock appears to be overvalued.
The current stock price of 円346.00 is trading 6.1% above its estimated GF Value™ of 円326.18.
GuruFocus considers Nichia Steel Works to be Fairly Valued.
Key valuation signals for TSE:5658:
Interest Coverage: 86.22 (48% above median its 10-year median of 58.44)
GF Value™: 円326.18 vs. price of 円346.00 (6.1% above fair value)
Industry Position: 482.6% above the Industrial Products median (#545 of 2325)
No single metric tells the full story. See the TSE:5658 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nichia Steel Works Ltd is a manufacturer of steel wire products, fasteners and related products. The products are used in various fields such as construction and civil infrastructure. It offers low carbon steel wire products, hard drawn steel wire products, fasteners & special products and other special finished products.
70GF Score
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