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NKK Switches CoTSE:6943 -0.71%61 Interest Coverage is 56.90 as of Mar. 2026, which is 54% below its 10-year median of 124.28. GuruFocus rates TSE:6943 with a GF Score™ of 61/100 and a GF Value™ of 円4,001.18 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,337 Industrial Products companies, NKK Switches Co ranks better than 81.9% 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. NKK Switches Co's
Operating Income
for the
three
months ended in Mar. 2026 was 円90 Mil. NKK Switches Co's Interest Expense for the
three
months ended in Mar. 2026 was 円-2 Mil.
NKK Switches Co's interest coverage for the quarter that ended in Mar. 2026 was 56.90.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. NKK Switches Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for NKK Switches Co's Interest Coverage or its related term are showing as below:
TSE:6943'
s Interest Coverage Range Over the Past 10 Years
Min: 4.94 Med: 124.28 Max: 204.86
Current: 100.83
TSE:6943's Interest Coverage is ranked better than 81.9% of 2337
companies
in the Industrial Products industry
Industry Median: 14.63
vs TSE:6943: 100.83
NKK Switches Co (TSE:6943) 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 .
NKK Switches Co Interest Coverage Related Terms
NKK Switches Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for NKK Switches 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, NKK Switches 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.
NKK Switches Co Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, NKK Switches Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where NKK Switches 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.
NKK Switches Co (TSE:6943) has a Interest Coverage of 56.90 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on NKK Switches Co and its competitors. This is 54% below median its historical median of 124.28. Over the past decade, NKK Switches Co's Interest Coverage has ranged from 4.94 to 204.86. According to the industry distribution chart, NKK Switches Co ranks #423 out of 2337 companies in the Industrial Products industry, placing it in the top 18.1%.
Is NKK Switches Co's Interest Coverage too high?
NKK Switches Co's current Interest Coverage of 56.90 is 54% below median its 10-year median of 124.28. Over the past 10 years, this metric has ranged from a low of 4.94 to a high of 204.86. The Industrial Products industry median Interest Coverage is 14.63. NKK Switches Co's value of 56.90 is 288.9% above this industry median. Based on the distribution chart, NKK Switches Co ranks #423 out of 2337 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, NKK Switches 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 NKK Switches Co's Interest Coverage compare to VRT and BE?
According to the Industrial Products industry distribution chart, NKK Switches Co ranks #423 out of 2337 companies for Interest Coverage. This places NKK Switches Co in the top 18% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 14.63. NKK Switches Co's value of 56.90 is 288.9% above this benchmark. Historically, NKK Switches Co's own Interest Coverage has ranged from 4.94 to 204.86 over the past decade. While the company's 10-year median is 124.28 vs. the industry median of 14.63, NKK Switches 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 14.63, based on 2,337 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. NKK Switches Co's current Interest Coverage of 56.90 is 288.9% 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 NKK Switches Co and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NKK Switches Co's current Interest Coverage is 56.90, which is 54% below median its own 10-year median of 124.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NKK Switches Co stock overvalued right now?
Based on GuruFocus' analysis, NKK Switches Co (TSE:6943) is currently considered Significantly Overvalued. The stock's GF Value™ is 円4,001.18, compared to a current price of 円5,560.00 — trading 39% above its estimated fair value. The current Interest Coverage is 56.90, which is 54% below median its 10-year median of 124.28 and 288.9% above the Industrial Products industry median of 14.63. NKK Switches Co's overall GF Score™ is 61/100 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 NKK Switches Co (TSE:6943), the current Interest Coverage is 56.90 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 NKK Switches Co (TSE:6943) Overvalued in 2026?
Based on GuruFocus' analysis, NKK Switches Co stock appears to be overvalued.
The current stock price of 円5,560.00 is trading 39% above its estimated GF Value™ of 円4,001.18.
GuruFocus considers NKK Switches Co to be Significantly Overvalued.
Key valuation signals for TSE:6943:
Interest Coverage: 56.90 (54% below median its 10-year median of 124.28)
GF Value™: 円4,001.18 vs. price of 円5,560.00 (39% above fair value)
Industry Position: 288.9% above the Industrial Products median (#423 of 2337)
No single metric tells the full story. See the TSE:6943 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NKK Switches Co Ltd is a Japan-based company that engages in the manufacture and sale of switches and peripheral equipment. It offers DIP, illuminated, keylock, membrane keypads, pushbutton, rocker, rotary, slide, surface mount, tactile, tilt, toggle, and touch screen switches; switch guides; and accessories.
61GF Score
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