Nippon Signal CoTSE:6741 -0.38%90 Interest Coverage is 117.93 as of Mar. 2026, which is 16% below its 10-year median of 140.61. GuruFocus rates TSE:6741 with a GF Score™ of 90/100 and a GF Value™ of 円1,288.11 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 2,322 Industrial Products companies, Nippon Signal Co ranks better than 80.36% 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 Signal Co's
Operating Income
for the
three
months ended in Mar. 2026 was 円6,722 Mil. Nippon Signal Co's Interest Expense for the
three
months ended in Mar. 2026 was 円-57 Mil.
Nippon Signal Co's interest coverage for the quarter that ended in Mar. 2026 was 117.93.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Nippon Signal Co's Interest Coverage or its related term are showing as below:
TSE:6741'
s Interest Coverage Range Over the Past 10 Years
Min: 89.65 Med: 140.61 Max: 305
Current: 90.71
TSE:6741's Interest Coverage is ranked better than 80.36% of 2322
companies
in the Industrial Products industry
Industry Median: 14.775
vs TSE:6741: 90.71
Nippon Signal Co (TSE:6741) 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 Signal Co Interest Coverage Related Terms
Nippon Signal Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nippon Signal 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.
For the Electrical Equipment & Parts subindustry, Nippon Signal 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 Signal Co Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nippon Signal Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nippon Signal 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 Signal Co (TSE:6741) has a Interest Coverage of 117.93 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Signal Co and its competitors. This is 16% below median its historical median of 140.61. Over the past decade, Nippon Signal Co's Interest Coverage has ranged from 89.65 to 305.00. According to the industry distribution chart, Nippon Signal Co ranks #456 out of 2322 companies in the Industrial Products industry, placing it in the top 19.6%.
Is Nippon Signal Co's Interest Coverage too high?
Nippon Signal Co's current Interest Coverage of 117.93 is 16% below median its 10-year median of 140.61. Over the past 10 years, this metric has ranged from a low of 89.65 to a high of 305.00. The Industrial Products industry median Interest Coverage is 14.78. Nippon Signal Co's value of 117.93 is 698.2% above this industry median. Based on the distribution chart, Nippon Signal Co ranks #456 out of 2322 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Signal Co has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Signal Co's Interest Coverage compare to VRT and BE?
According to the Industrial Products industry distribution chart, Nippon Signal Co ranks #456 out of 2322 companies for Interest Coverage. This places Nippon Signal Co in the top 20% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 14.78. Nippon Signal Co's value of 117.93 is 698.2% above this benchmark. Historically, Nippon Signal Co's own Interest Coverage has ranged from 89.65 to 305.00 over the past decade. While the company's 10-year median is 140.61 vs. the industry median of 14.78, Nippon Signal 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 14.78, based on 2,322 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 Signal Co's current Interest Coverage of 117.93 is 698.2% 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 Signal Co and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Signal Co's current Interest Coverage is 117.93, which is 16% below median its own 10-year median of 140.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Signal Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Signal Co (TSE:6741) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,288.11, compared to a current price of 円1,579.00 — trading 22.6% above its estimated fair value. The current Interest Coverage is 117.93, which is 16% below median its 10-year median of 140.61 and 698.2% above the Industrial Products industry median of 14.78. Nippon Signal Co's overall GF Score™ is 90/100 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 Signal Co (TSE:6741), the current Interest Coverage is 117.93 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 Signal Co (TSE:6741) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Signal Co stock appears to be overvalued.
The current stock price of 円1,579.00 is trading 22.6% above its estimated GF Value™ of 円1,288.11.
GuruFocus considers Nippon Signal Co to be Modestly Overvalued.
Key valuation signals for TSE:6741:
Interest Coverage: 117.93 (16% below median its 10-year median of 140.61)
GF Value™: 円1,288.11 vs. price of 円1,579.00 (22.6% above fair value)
Industry Position: 698.2% above the Industrial Products median (#456 of 2322)
No single metric tells the full story. See the TSE:6741 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Signal Co Ltd is a Japanese technology company. Its products and services fall into the following categories: railway signal systems, traffic information systems, automatic fare collection, or AFR, systems, and parking information systems. The railway signal systems division provides automatic train supervision systems, relay interlocking equipment, level-crossing systems, and LED information boards. The traffic information systems division offers universal traffic management systems, local controllers, and LED traffic signal lights. The AFR system division offers comprehensive network systems to automate station operations. The parking information systems division offers car parking systems and bicycle lock systems.
90GF Score
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