Di Nikko Engineering Co (TSE:6635) Interest Coverage: 2.53 (As of Dec. 2025) — Near Median

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TSE:6635 Di Nikko Engineering Co Ltd TSE:6635
61 GF Score
Price 円666.00
GF Value 円491.32
Valuation Significantly Overvalued
! 5 Warning Signs
View Full Analysis

What is Di Nikko Engineering Co Interest Coverage?

Di Nikko Engineering Co TSE:6635 +2.62% 61 Interest Coverage is 2.53 as of Dec. 2025, which is 3% above its 10-year median of 2.46. GuruFocus rates TSE:6635 with a GF Score™ of 61/100 and a GF Value™ of 円491.32 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,674 Hardware companies, Di Nikko Engineering Co ranks worse than 82.14% 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. Di Nikko Engineering Co's Operating Income for the six months ended in Dec. 2025 was 円286 Mil. Di Nikko Engineering Co's Interest Expense for the six months ended in Dec. 2025 was 円-113 Mil. Di Nikko Engineering Co's interest coverage for the quarter that ended in Dec. 2025 was 2.53. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Di Nikko Engineering Co Ltd interest coverage is 3.14, which is low.

The historical rank and industry rank for Di Nikko Engineering Co's Interest Coverage or its related term are showing as below:

TSE:6635' s Interest Coverage Range Over the Past 10 Years
Min: 0.9   Med: 2.46   Max: 4.39
Current: 3.14


TSE:6635's Interest Coverage is ranked worse than
82.14% of 1674 companies
in the Hardware industry
Industry Median: 13.69 vs TSE:6635: 3.14

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Di Nikko Engineering Co  (TSE:6635) 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 .


Di Nikko Engineering Co Interest Coverage Related Terms


Di Nikko Engineering Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Di Nikko Engineering 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.

Di Nikko Engineering Co Interest Coverage Chart

Di Nikko Engineering Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.72 4.39 2.88 3.33 3.14

Di Nikko Engineering Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.95 3.90 2.78 3.90 2.53

TSE:6635 vs APH, GLW: Interest Coverage Comparison

For the Electronic Components subindustry, Di Nikko Engineering 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.


Di Nikko Engineering Co Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, Di Nikko Engineering Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Di Nikko Engineering Co's Interest Coverage falls into.


TSE:6635
61GF Score
Di Nikko Engineering Co Ltd TSE:6635
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Di Nikko Engineering Co Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Di Nikko Engineering Co's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Di Nikko Engineering Co's Interest Expense was 円-203 Mil. Its Operating Income was 円638 Mil. And its Long-Term Debt & Capital Lease Obligation was 円3,121 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*638.133/-203.164
=3.14

Di Nikko Engineering Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Di Nikko Engineering Co's Interest Expense was 円-113 Mil. Its Operating Income was 円286 Mil. And its Long-Term Debt & Capital Lease Obligation was 円3,121 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*286.311/-112.996
=2.53

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 2.53 mean?
Di Nikko Engineering Co (TSE:6635) has a Interest Coverage of 2.53 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Di Nikko Engineering Co and its competitors. This is near median its historical median of 2.46. Over the past decade, Di Nikko Engineering Co's Interest Coverage has ranged from 0.90 to 4.39. According to the industry distribution chart, Di Nikko Engineering Co ranks #1375 out of 1674 companies in the Hardware industry, placing it in the top 82.1%.
Is Di Nikko Engineering Co's Interest Coverage too high?
Di Nikko Engineering Co's current Interest Coverage of 2.53 is near median its 10-year median of 2.46. Over the past 10 years, this metric has ranged from a low of 0.90 to a high of 4.39. The Hardware industry median Interest Coverage is 13.69. Di Nikko Engineering Co's value of 2.53 is 81.5% below this industry median. Based on the distribution chart, Di Nikko Engineering Co ranks #1375 out of 1674 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Di Nikko Engineering Co has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Di Nikko Engineering Co's Interest Coverage compare to APH and GLW?
According to the Hardware industry distribution chart, Di Nikko Engineering Co ranks #1375 out of 1674 companies for Interest Coverage. This places Di Nikko Engineering Co in the lower half of its industry. The industry median Interest Coverage is 13.69. Di Nikko Engineering Co's value of 2.53 is 81.5% below this benchmark. Historically, Di Nikko Engineering Co's own Interest Coverage has ranged from 0.90 to 4.39 over the past decade. While the company's 10-year median is 2.46 vs. the industry median of 13.69, Di Nikko Engineering Co has consistently been below 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 13.69, based on 1,674 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. Di Nikko Engineering Co's current Interest Coverage of 2.53 is 81.5% below 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 Di Nikko Engineering Co and its competitors. For the Hardware industry, the median Interest Coverage is 13.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Di Nikko Engineering Co's current Interest Coverage is 2.53, which is near median its own 10-year median of 2.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Di Nikko Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Di Nikko Engineering Co (TSE:6635) is currently considered Significantly Overvalued. The stock's GF Value™ is 円491.32, compared to a current price of 円666.00 — trading 35.6% above its estimated fair value. The current Interest Coverage is 2.53, which is near median its 10-year median of 2.46 and 81.5% below the Hardware industry median of 13.69. Di Nikko Engineering Co's overall GF Score™ is 61/100 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 Di Nikko Engineering Co (TSE:6635), the current Interest Coverage is 2.53 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 Di Nikko Engineering Co (TSE:6635) Overvalued in 2026?

Based on GuruFocus' analysis, Di Nikko Engineering Co stock appears to be overvalued. The current stock price of 円666.00 is trading 35.6% above its estimated GF Value™ of 円491.32. GuruFocus considers Di Nikko Engineering Co to be Significantly Overvalued.

Key valuation signals for TSE:6635:

  • Interest Coverage: 2.53 (near median its 10-year median of 2.46)
  • GF Value™: 円491.32 vs. price of 円666.00 (35.6% above fair value)
  • GF Score™: 61/100 with 5 warning signs
  • Industry Position: 81.5% below the Hardware median (#1375 of 1674)

No single metric tells the full story. See the TSE:6635 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Di Nikko Engineering Co Business Description

Address 697-1, Nemuro, Tochigi, Nikko, JPN, 321-2342
Di Nikko Engineering Co Ltd engages in the design, test, manufacture, distribution, and return/repair of electronic components and assemblies for original equipment manufacturers in Japan. Its services include the design to production of the circuit implementation of an electronic board used for an electronics product, an OA apparatus, optical goods, and communications equipment. Geographically company manages in two segments Japan and Asia.
61GF Score

Get the complete analysis for TSE:6635

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円666.00
Price
円491.32
GF Value