DKK Co (TSE:6706) Interest Coverage: 12.00 (As of Mar. 2026) — 69% Below Median


TSE:6706 DKK Co Ltd TSE:6706
61 GF Score
Price 円3,060.00
GF Value 円2,878.02
Valuation Fairly Valued
! 3 Warning Signs
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What is DKK Co Interest Coverage?

DKK Co TSE:6706 +0.66% 61 Interest Coverage is 12.00 as of Mar. 2026, which is 69% below its 10-year median of 38.18. GuruFocus rates TSE:6706 with a GF Score™ of 61/100 and a GF Value™ of 円2,878.02 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,672 Hardware companies, DKK Co ranks worse than 50.9% 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. DKK Co's Operating Income for the three months ended in Mar. 2026 was 円312 Mil. DKK Co's Interest Expense for the three months ended in Mar. 2026 was 円-26 Mil. DKK Co's interest coverage for the quarter that ended in Mar. 2026 was 12.00. The higher the ratio, the stronger the company's financial strength is.

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

TSE:6706' s Interest Coverage Range Over the Past 10 Years
Min: 2.04   Med: 38.18   Max: 168.13
Current: 13.47


TSE:6706's Interest Coverage is ranked worse than
50.9% of 1672 companies
in the Hardware industry
Industry Median: 13.73 vs TSE:6706: 13.47

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


DKK Co  (TSE:6706) 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 .


DKK Co Interest Coverage Related Terms


DKK Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for DKK 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.

DKK Co Interest Coverage Chart

DKK Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.04 0.00 0.00 14.17 13.70

DKK Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 46.30 0.00 22.25 39.82 12.00

TSE:6706 vs CSCO, CIEN, MSI: Interest Coverage Comparison

For the Communication Equipment subindustry, DKK 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.


DKK Co Interest Coverage vs Hardware Industry

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

* The bar in red indicates where DKK Co's Interest Coverage falls into.


TSE:6706
61GF Score
DKK Co Ltd TSE:6706
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

DKK 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.

DKK Co's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, DKK Co's Interest Expense was 円-89 Mil. Its Operating Income was 円1,219 Mil. And its Long-Term Debt & Capital Lease Obligation was 円735 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*1219/-89
=13.70

DKK Co's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, DKK Co's Interest Expense was 円-26 Mil. Its Operating Income was 円312 Mil. And its Long-Term Debt & Capital Lease Obligation was 円735 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*312/-26
=12.00

* 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 12.00 mean?
DKK Co (TSE:6706) has a Interest Coverage of 12.00 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on DKK Co and its competitors. This is 69% below median its historical median of 38.18. Over the past decade, DKK Co's Interest Coverage has ranged from 2.04 to 168.13. According to the industry distribution chart, DKK Co ranks #851 out of 1672 companies in the Hardware industry, placing it in the top 50.9%.
Is DKK Co's Interest Coverage too high?
DKK Co's current Interest Coverage of 12.00 is 69% below median its 10-year median of 38.18. Over the past 10 years, this metric has ranged from a low of 2.04 to a high of 168.13. The Hardware industry median Interest Coverage is 13.73. DKK Co's value of 12.00 is 12.6% below this industry median. Based on the distribution chart, DKK Co ranks #851 out of 1672 companies in the Hardware industry, which is below the industry midpoint. Overall, DKK Co has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does DKK Co's Interest Coverage compare to CSCO and CIEN?
According to the Hardware industry distribution chart, DKK Co ranks #851 out of 1672 companies for Interest Coverage. This places DKK Co in the lower half of its industry. The industry median Interest Coverage is 13.73. DKK Co's value of 12.00 is 12.6% below this benchmark. Historically, DKK Co's own Interest Coverage has ranged from 2.04 to 168.13 over the past decade. While the company's 10-year median is 38.18 vs. the industry median of 13.73, DKK 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 13.73, based on 1,672 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. DKK Co's current Interest Coverage of 12.00 is 12.6% 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 DKK Co and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DKK Co's current Interest Coverage is 12.00, which is 69% below median its own 10-year median of 38.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DKK Co stock overvalued right now?
Based on GuruFocus' analysis, DKK Co (TSE:6706) is currently considered Fairly Valued. The stock's GF Value™ is 円2,878.02, compared to a current price of 円3,060.00 — trading 6.3% above its estimated fair value. The current Interest Coverage is 12.00, which is 69% below median its 10-year median of 38.18 and 12.6% below the Hardware industry median of 13.73. DKK Co's overall GF Score™ is 61/100 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 DKK Co (TSE:6706), the current Interest Coverage is 12.00 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 DKK Co (TSE:6706) Overvalued in 2026?

Based on GuruFocus' analysis, DKK Co stock appears to be overvalued. The current stock price of 円3,060.00 is trading 6.3% above its estimated GF Value™ of 円2,878.02. GuruFocus considers DKK Co to be Fairly Valued.

Key valuation signals for TSE:6706:

  • Interest Coverage: 12.00 (69% below median its 10-year median of 38.18)
  • GF Value™: 円2,878.02 vs. price of 円3,060.00 (6.3% above fair value)
  • GF Score™: 61/100 with 3 warning signs
  • Industry Position: 12.6% below the Hardware median (#851 of 1672)

No single metric tells the full story. See the TSE:6706 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


DKK Co Business Description

Address 3-3-1, Marunouchi, Chiyoda-ku, Tokyo, JPN, 100-0005
DKK Co Ltd engages in the design, manufacture, and sale of telecommunications facilities and equipment. It operates through the following divisions: Telecommunication, and Radio Frequency. The Telecommunication segment develops, designs, manufactures and installs antennas, mobile communications towers, peripheral devices, steel structures and solar power panels. The Radio Frequency segment includes induction heating equipment, radio frequency-applied equipment, and vacuum furnaces.
61GF Score

Get the complete analysis for TSE:6706

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

円3,060.00
Price
円2,878.02
GF Value