TEAC (TSE:6803) Interest Coverage: 2.33 (As of Mar. 2026) — 22% Above Median


TSE:6803 TEAC Corp TSE:6803
63 GF Score
Price 円96.00
GF Value 円98.31
Valuation Fairly Valued
! 5 Warning Signs
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What is TEAC Interest Coverage?

TEAC TSE:6803 63 Interest Coverage is 2.33 as of Mar. 2026, which is 22% above its 10-year median of 1.91. GuruFocus rates TSE:6803 with a GF Score™ of 63/100 and a GF Value™ of 円98.31 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,672 Hardware companies, TEAC ranks worse than 76.85% 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. TEAC's Operating Income for the six months ended in Mar. 2026 was 円506 Mil. TEAC's Interest Expense for the six months ended in Mar. 2026 was 円-217 Mil. TEAC's interest coverage for the quarter that ended in Mar. 2026 was 2.33. The higher the ratio, the stronger the company's financial strength is.

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

TSE:6803' s Interest Coverage Range Over the Past 10 Years
Min: 0.85   Med: 1.91   Max: 4.36
Current: 1.18


TSE:6803's Interest Coverage is ranked worse than
76.85% of 1672 companies
in the Hardware industry
Industry Median: 13.73 vs TSE:6803: 1.18

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


TEAC  (TSE:6803) 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 .


TEAC Interest Coverage Related Terms


TEAC Interest Coverage Historical Data

* Premium members only.

The historical data trend for TEAC'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.

TEAC Interest Coverage Chart

TEAC 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 3.72 2.47 0.99 4.36 1.18

TEAC 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 3.67 0.00 16.82 0.00 2.33

TSE:6803 vs SNDK, DELL, STX: Interest Coverage Comparison

For the Computer Hardware subindustry, TEAC'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.


TEAC Interest Coverage vs Hardware Industry

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

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


TSE:6803
63GF Score
TEAC Corp TSE:6803
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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TEAC 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.

TEAC'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, TEAC's Interest Expense was 円-287 Mil. Its Operating Income was 円339 Mil. And its Long-Term Debt & Capital Lease Obligation was 円704 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*339/-287
=1.18

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

Here, for the six months ended in Mar. 2026, TEAC's Interest Expense was 円-217 Mil. Its Operating Income was 円506 Mil. And its Long-Term Debt & Capital Lease Obligation was 円704 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*506/-217
=2.33

* 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 2.33 mean?
TEAC (TSE:6803) has a Interest Coverage of 2.33 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on TEAC and its competitors. This is 22% above median its historical median of 1.91. Over the past decade, TEAC's Interest Coverage has ranged from 0.85 to 4.36. According to the industry distribution chart, TEAC ranks #1285 out of 1672 companies in the Hardware industry, placing it in the top 76.9%.
Is TEAC's Interest Coverage too high?
TEAC's current Interest Coverage of 2.33 is 22% above median its 10-year median of 1.91. Over the past 10 years, this metric has ranged from a low of 0.85 to a high of 4.36. The Hardware industry median Interest Coverage is 13.73. TEAC's value of 2.33 is 83% below this industry median. Based on the distribution chart, TEAC ranks #1285 out of 1672 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, TEAC has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does TEAC's Interest Coverage compare to SNDK and DELL?
According to the Hardware industry distribution chart, TEAC ranks #1285 out of 1672 companies for Interest Coverage. This places TEAC in the lower half of its industry. The industry median Interest Coverage is 13.73. TEAC's value of 2.33 is 83% below this benchmark. Historically, TEAC's own Interest Coverage has ranged from 0.85 to 4.36 over the past decade. While the company's 10-year median is 1.91 vs. the industry median of 13.73, TEAC 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. TEAC's current Interest Coverage of 2.33 is 83% 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 TEAC 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. TEAC's current Interest Coverage is 2.33, which is 22% above median its own 10-year median of 1.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TEAC stock overvalued right now?
Based on GuruFocus' analysis, TEAC (TSE:6803) is currently considered Fairly Valued. The stock's GF Value™ is 円98.31, compared to a current price of 円96.00 — trading 2.3% below its estimated fair value. The current Interest Coverage is 2.33, which is 22% above median its 10-year median of 1.91 and 83% below the Hardware industry median of 13.73. TEAC's overall GF Score™ is 63/100 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 TEAC (TSE:6803), the current Interest Coverage is 2.33 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 TEAC (TSE:6803) Overvalued in 2026?

Based on GuruFocus' analysis, TEAC stock appears to be undervalued. The current stock price of 円96.00 is trading 2.3% below its estimated GF Value™ of 円98.31. GuruFocus considers TEAC to be Fairly Valued.

Key valuation signals for TSE:6803:

  • Interest Coverage: 2.33 (22% above median its 10-year median of 1.91)
  • GF Value™: 円98.31 vs. price of 円96.00 (2.3% below fair value)
  • GF Score™: 63/100 with 5 warning signs
  • Industry Position: 83% below the Hardware median (#1285 of 1672)

No single metric tells the full story. See the TSE:6803 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


TEAC Business Description

Address 47 Ochiai 1-chome, Tama-shi, Tokyo, JPN, 206-8530
TEAC Corp is a Japanese based electronic company. It is engaged in manufacturing and sale of audio and information equipment. It operates in two business divisions including Audio products business and Information products business. Its Audio products business offers high-end audio products, general audio products, audio equipment for, music production and professional audio products. Information products business offers recording and reproducing equipment for aircraft, medical image recording and reproducing products, supporting systems for individual nursing care, measurement products (transducers, data recorders), and optical drives for the industrial market.
63GF Score

Get the complete analysis for TSE:6803

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

円96.00
Price
円98.31
GF Value