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Union Tool CoTSE:6278 -8.63%79 Interest Coverage is 352.17 as of Dec. 2025, which is 26% below its 10-year median of 475.33. GuruFocus rates TSE:6278 with a GF Score™ of 79/100 and a GF Value™ of 円7,748.96 (Significantly Overvalued). Among 2,321 Industrial Products companies, Union Tool Co ranks better than 92.46% 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. Union Tool Co's
Operating Income
for the
three
months ended in Dec. 2025 was 円2,113 Mil. Union Tool Co's Interest Expense for the
three
months ended in Dec. 2025 was 円-6 Mil.
Union Tool Co's interest coverage for the quarter that ended in Dec. 2025 was 352.17.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Union Tool Co has no debt.
The historical rank and industry rank for Union Tool Co's Interest Coverage or its related term are showing as below:
TSE:6278'
s Interest Coverage Range Over the Past 10 Years
Min: 269.76 Med: 475.33 Max: 74575.93
Current: 529.53
TSE:6278's Interest Coverage is ranked better than 92.46% of 2321
companies
in the Industrial Products industry
Industry Median: 14.72
vs TSE:6278: 529.53
Union Tool Co (TSE:6278) 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 .
Union Tool Co Interest Coverage Related Terms
Union Tool Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Union Tool Co'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:6278 vs SNA, RBC, LECO: Interest Coverage Comparison
For the Tools & Accessories subindustry, Union Tool Co'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.
Union Tool Co Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Union Tool Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Union Tool Co'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.
Union Tool Co (TSE:6278) has a Interest Coverage of 352.17 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Union Tool Co and its competitors. This is 26% below median its historical median of 475.33. Over the past decade, Union Tool Co's Interest Coverage has ranged from 269.76 to 74,575.93. According to the industry distribution chart, Union Tool Co ranks #175 out of 2321 companies in the Industrial Products industry, placing it in the top 7.5%.
Is Union Tool Co's Interest Coverage too high?
Union Tool Co's current Interest Coverage of 352.17 is 26% below median its 10-year median of 475.33. Over the past 10 years, this metric has ranged from a low of 269.76 to a high of 74,575.93. The Industrial Products industry median Interest Coverage is 14.72. Union Tool Co's value of 352.17 is 2292.5% above this industry median. Based on the distribution chart, Union Tool Co ranks #175 out of 2321 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Union Tool Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Union Tool Co's Interest Coverage compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Union Tool Co ranks #175 out of 2321 companies for Interest Coverage. This places Union Tool Co in the top 8% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 14.72. Union Tool Co's value of 352.17 is 2292.5% above this benchmark. Historically, Union Tool Co's own Interest Coverage has ranged from 269.76 to 74,575.93 over the past decade. While the company's 10-year median is 475.33 vs. the industry median of 14.72, Union Tool Co 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 14.72, based on 2,321 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. Union Tool Co's current Interest Coverage of 352.17 is 2292.5% 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 Union Tool Co and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Union Tool Co's current Interest Coverage is 352.17, which is 26% below median its own 10-year median of 475.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Union Tool Co stock overvalued right now?
Based on GuruFocus' analysis, Union Tool Co (TSE:6278) is currently considered Significantly Overvalued. The stock's GF Value™ is 円7,748.96, compared to a current price of 円17,250.00 — trading 122.6% above its estimated fair value. The current Interest Coverage is 352.17, which is 26% below median its 10-year median of 475.33 and 2292.5% above the Industrial Products industry median of 14.72. Union Tool Co's overall GF Score™ is 79/100. 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 Union Tool Co (TSE:6278), the current Interest Coverage is 352.17 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 Union Tool Co (TSE:6278) Overvalued in 2026?
Based on GuruFocus' analysis, Union Tool Co stock appears to be overvalued.
The current stock price of 円17,250.00 is trading 122.6% above its estimated GF Value™ of 円7,748.96.
GuruFocus considers Union Tool Co to be Significantly Overvalued.
Key valuation signals for TSE:6278:
Interest Coverage: 352.17 (26% below median its 10-year median of 475.33)
GF Value™: 円7,748.96 vs. price of 円17,250.00 (122.6% above fair value)
Industry Position: 2292.5% above the Industrial Products median (#175 of 2321)
No single metric tells the full story. See the TSE:6278 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Union Tool Co is a designer and manufacturer of industrial cutting tools to a broad sector of the global industry. The company's key product includes carbide drill used in the manufacture of Printed Circuit Boards, found in all modern electronics. It also manufactures precision machinery including linear motion guides, diesinking end-mills, and digital measuring equipment for industrial use. The company has operations in Japan, Asia, North America and Europe.
79GF Score
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