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Nippon Gear CoTSE:6356 +1.07%71 Interest Coverage is 6,017.13 as of Mar. 2026, which is 10099% above its 10-year median of 59.00. GuruFocus rates TSE:6356 with a GF Score™ of 71/100 and a GF Value™ of 円590.21 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,054 Vehicles & Parts companies, Nippon Gear Co ranks better than 98.29% 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. Nippon Gear Co's
Operating Income
for the
three
months ended in Mar. 2026 was 円1,017 Mil. Nippon Gear Co's Interest Expense for the
three
months ended in Mar. 2026 was 円-0 Mil.
Nippon Gear Co's interest coverage for the quarter that ended in Mar. 2026 was 6,017.13.
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. Nippon Gear Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Nippon Gear Co's Interest Coverage or its related term are showing as below:
TSE:6356'
s Interest Coverage Range Over the Past 10 Years
Min: 14.97 Med: 59 Max: 4547.77
Current: 4547.77
TSE:6356's Interest Coverage is ranked better than 98.29% of 1054
companies
in the Vehicles & Parts industry
Industry Median: 8.41
vs TSE:6356: 4547.77
Nippon Gear Co (TSE:6356) 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 .
Nippon Gear Co Interest Coverage Related Terms
Nippon Gear Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nippon Gear 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:6356 vs ORLY, AZO, GPC: Interest Coverage Comparison
For the Auto Parts subindustry, Nippon Gear 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.
Nippon Gear Co Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Nippon Gear Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nippon Gear 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.
Nippon Gear Co (TSE:6356) has a Interest Coverage of 6,017.13 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Gear Co and its competitors. This is 10099% above median its historical median of 59.00. Over the past decade, Nippon Gear Co's Interest Coverage has ranged from 14.97 to 4,547.77. According to the industry distribution chart, Nippon Gear Co ranks #18 out of 1054 companies in the Vehicles & Parts industry, placing it in the top 1.7%.
Is Nippon Gear Co's Interest Coverage too high?
Nippon Gear Co's current Interest Coverage of 6,017.13 is 10099% above median its 10-year median of 59.00. Over the past 10 years, this metric has ranged from a low of 14.97 to a high of 4,547.77. The Vehicles & Parts industry median Interest Coverage is 8.41. Nippon Gear Co's value of 6,017.13 is 71447.3% above this industry median. Based on the distribution chart, Nippon Gear Co ranks #18 out of 1054 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Gear Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Gear Co's Interest Coverage compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Nippon Gear Co ranks #18 out of 1054 companies for Interest Coverage. This places Nippon Gear Co in the top 2% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.41. Nippon Gear Co's value of 6,017.13 is 71447.3% above this benchmark. Historically, Nippon Gear Co's own Interest Coverage has ranged from 14.97 to 4,547.77 over the past decade. While the company's 10-year median is 59.00 vs. the industry median of 8.41, Nippon Gear 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 a Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.41, based on 1,054 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. Nippon Gear Co's current Interest Coverage of 6,017.13 is 71447.3% 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 Nippon Gear Co and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Gear Co's current Interest Coverage is 6,017.13, which is 10099% above median its own 10-year median of 59.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Gear Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Gear Co (TSE:6356) is currently considered Significantly Overvalued. The stock's GF Value™ is 円590.21, compared to a current price of 円1,317.00 — trading 123.1% above its estimated fair value. The current Interest Coverage is 6,017.13, which is 10099% above median its 10-year median of 59.00 and 71447.3% above the Vehicles & Parts industry median of 8.41. Nippon Gear Co's overall GF Score™ is 71/100 with 1 warning sign 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 Nippon Gear Co (TSE:6356), the current Interest Coverage is 6,017.13 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 Nippon Gear Co (TSE:6356) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Gear Co stock appears to be overvalued.
The current stock price of 円1,317.00 is trading 123.1% above its estimated GF Value™ of 円590.21.
GuruFocus considers Nippon Gear Co to be Significantly Overvalued.
Key valuation signals for TSE:6356:
Interest Coverage: 6,017.13 (10099% above median its 10-year median of 59.00)
GF Value™: 円590.21 vs. price of 円1,317.00 (123.1% above fair value)
Industry Position: 71447.3% above the Vehicles & Parts median (#18 of 1054)
No single metric tells the full story. See the TSE:6356 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Gear Co Ltd is engaged in the design, production, and sale of valve actuators, high-speed gear drivers, mixers, screw jacks, monitoring equipment, data communication equipment, control equipment, and software. It offers valve actuators for a range of applications in petroleum, nuclear, generating plants, and water/sewer pipelines; jacks for use in lifting/lowering, inclines, pulling, opening/closing, adjustment, and holding; gear drives for power plant, chemical plant, wastewater treatment plant, and other applications; and gears for automotive, railroad, industrial machine, and other industries.
71GF Score
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