Daido Signal Co (TSE:6743) Interest Coverage: 27.18 (As of Mar. 2026) — 21% Above Median


TSE:6743 Daido Signal Co Ltd TSE:6743
68 GF Score
Price 円799.00
GF Value 円663.00
Valuation Modestly Overvalued
! 2 Warning Signs
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What is Daido Signal Co Interest Coverage?

Daido Signal Co TSE:6743 +0.38% 68 Interest Coverage is 27.18 as of Mar. 2026, which is 21% above its 10-year median of 22.55. GuruFocus rates TSE:6743 with a GF Score™ of 68/100 and a GF Value™ of 円663.00 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,325 Industrial Products companies, Daido Signal Co ranks better than 61.68% 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. Daido Signal Co's Operating Income for the six months ended in Mar. 2026 was 円1,250 Mil. Daido Signal Co's Interest Expense for the six months ended in Mar. 2026 was 円-46 Mil. Daido Signal Co's interest coverage for the quarter that ended in Mar. 2026 was 27.18. The higher the ratio, the stronger the company's financial strength is.

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

TSE:6743' s Interest Coverage Range Over the Past 10 Years
Min: 15.11   Med: 22.55   Max: 40.86
Current: 26.48


TSE:6743's Interest Coverage is ranked better than
61.68% of 2325 companies
in the Industrial Products industry
Industry Median: 14.8 vs TSE:6743: 26.48

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


Daido Signal Co  (TSE:6743) 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 .


Daido Signal Co Interest Coverage Related Terms


Daido Signal Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Daido 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.

Daido Signal Co Interest Coverage Chart

Daido Signal 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 22.24 15.11 21.13 18.23 26.48

Daido Signal Co Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 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 46.41 13.07 22.29 25.61 27.18

TSE:6743 vs GEV, ETN, PH: Interest Coverage Comparison

For the Specialty Industrial Machinery subindustry, Daido 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.


Daido Signal Co Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Daido Signal Co's Interest Coverage distribution charts can be found below:

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


TSE:6743
68GF Score
Daido Signal Co Ltd TSE:6743
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Daido Signal 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.

Daido Signal 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, Daido Signal Co's Interest Expense was 円-83 Mil. Its Operating Income was 円2,188 Mil. And its Long-Term Debt & Capital Lease Obligation was 円610 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*2187.964/-82.615
=26.48

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

Here, for the six months ended in Mar. 2026, Daido Signal Co's Interest Expense was 円-46 Mil. Its Operating Income was 円1,250 Mil. And its Long-Term Debt & Capital Lease Obligation was 円610 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*1250.04/-45.995
=27.18

* 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 27.18 mean?
Daido Signal Co (TSE:6743) has a Interest Coverage of 27.18 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Daido Signal Co and its competitors. This is 21% above median its historical median of 22.55. Over the past decade, Daido Signal Co's Interest Coverage has ranged from 15.11 to 40.86. According to the industry distribution chart, Daido Signal Co ranks #891 out of 2325 companies in the Industrial Products industry, placing it in the top 38.3%.
Is Daido Signal Co's Interest Coverage too high?
Daido Signal Co's current Interest Coverage of 27.18 is 21% above median its 10-year median of 22.55. Over the past 10 years, this metric has ranged from a low of 15.11 to a high of 40.86. The Industrial Products industry median Interest Coverage is 14.80. Daido Signal Co's value of 27.18 is 83.6% above this industry median. Based on the distribution chart, Daido Signal Co ranks #891 out of 2325 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Daido Signal Co has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daido Signal Co's Interest Coverage compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Daido Signal Co ranks #891 out of 2325 companies for Interest Coverage. This puts Daido Signal Co in the upper half of its industry. The industry median Interest Coverage is 14.80. Daido Signal Co's value of 27.18 is 83.6% above this benchmark. Historically, Daido Signal Co's own Interest Coverage has ranged from 15.11 to 40.86 over the past decade. While the company's 10-year median is 22.55 vs. the industry median of 14.80, Daido 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 14.80, based on 2,325 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. Daido Signal Co's current Interest Coverage of 27.18 is 83.6% 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 Daido Signal Co and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daido Signal Co's current Interest Coverage is 27.18, which is 21% above median its own 10-year median of 22.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daido Signal Co stock overvalued right now?
Based on GuruFocus' analysis, Daido Signal Co (TSE:6743) is currently considered Modestly Overvalued. The stock's GF Value™ is 円663.00, compared to a current price of 円799.00 — trading 20.5% above its estimated fair value. The current Interest Coverage is 27.18, which is 21% above median its 10-year median of 22.55 and 83.6% above the Industrial Products industry median of 14.80. Daido Signal Co's overall GF Score™ is 68/100 with 2 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 Daido Signal Co (TSE:6743), the current Interest Coverage is 27.18 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 Daido Signal Co (TSE:6743) Overvalued in 2026?

Based on GuruFocus' analysis, Daido Signal Co stock appears to be overvalued. The current stock price of 円799.00 is trading 20.5% above its estimated GF Value™ of 円663.00. GuruFocus considers Daido Signal Co to be Modestly Overvalued.

Key valuation signals for TSE:6743:

  • Interest Coverage: 27.18 (21% above median its 10-year median of 22.55)
  • GF Value™: 円663.00 vs. price of 円799.00 (20.5% above fair value)
  • GF Score™: 68/100 with 2 warning signs
  • Industry Position: 83.6% above the Industrial Products median (#891 of 2325)

No single metric tells the full story. See the TSE:6743 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Daido Signal Co Business Description

Address New-Onarimon-Building, 6-17-19 Shimbashi, Minato-ku, Tokyo, JPN
Daido Signal Co Ltd is a Japan-based company engages in the manufacture, installation/processing, repair and sale of railway signal safety devices, electrical equipment, mechanical devices, and synthetic resins.
68GF Score

Get the complete analysis for TSE:6743

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

円799.00
Price
円663.00
GF Value