Daido Metal CoTSE:7245 +5.67%60 Interest Coverage is 6.75 as of Mar. 2026, which is 28% above its 10-year median of 5.29. GuruFocus rates TSE:7245 with a GF Score™ of 60/100 and a GF Value™ of 円652.56 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,067 Vehicles & Parts companies, Daido Metal Co ranks worse than 58.29% 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 Metal Co's
Operating Income
for the
three
months ended in Mar. 2026 was 円2,510 Mil. Daido Metal Co's Interest Expense for the
three
months ended in Mar. 2026 was 円-372 Mil.
Daido Metal Co's interest coverage for the quarter that ended in Mar. 2026 was 6.75.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Daido Metal Co's Interest Coverage or its related term are showing as below:
TSE:7245'
s Interest Coverage Range Over the Past 10 Years
Min: 1.86 Med: 5.29 Max: 11.21
Current: 5.76
TSE:7245's Interest Coverage is ranked worse than 58.29% of 1067
companies
in the Vehicles & Parts industry
Industry Median: 8.31
vs TSE:7245: 5.76
Daido Metal Co (TSE:7245) 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 Metal Co Interest Coverage Related Terms
Daido Metal Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Daido Metal 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.
TSE:7245 vs ORLY, AZO: Interest Coverage Comparison
For the Auto Parts subindustry, Daido Metal 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 Metal Co Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Daido Metal Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Daido Metal 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.
Daido Metal Co (TSE:7245) has a Interest Coverage of 6.75 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Daido Metal Co and its competitors. This is 28% above median its historical median of 5.29. Over the past decade, Daido Metal Co's Interest Coverage has ranged from 1.86 to 11.21. According to the industry distribution chart, Daido Metal Co ranks #622 out of 1067 companies in the Vehicles & Parts industry, placing it in the top 58.3%.
Is Daido Metal Co's Interest Coverage too high?
Daido Metal Co's current Interest Coverage of 6.75 is 28% above median its 10-year median of 5.29. Over the past 10 years, this metric has ranged from a low of 1.86 to a high of 11.21. The Vehicles & Parts industry median Interest Coverage is 8.31. Daido Metal Co's value of 6.75 is 18.8% below this industry median. Based on the distribution chart, Daido Metal Co ranks #622 out of 1067 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Daido Metal Co has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daido Metal Co's Interest Coverage compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Daido Metal Co ranks #622 out of 1067 companies for Interest Coverage. This places Daido Metal Co in the lower half of its industry. The industry median Interest Coverage is 8.31. Daido Metal Co's value of 6.75 is 18.8% below this benchmark. Historically, Daido Metal Co's own Interest Coverage has ranged from 1.86 to 11.21 over the past decade. While the company's 10-year median is 5.29 vs. the industry median of 8.31, Daido Metal 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.31, based on 1,067 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 Metal Co's current Interest Coverage of 6.75 is 18.8% 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 Daido Metal Co and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daido Metal Co's current Interest Coverage is 6.75, which is 28% above median its own 10-year median of 5.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daido Metal Co stock overvalued right now?
Based on GuruFocus' analysis, Daido Metal Co (TSE:7245) is currently considered Significantly Overvalued. The stock's GF Value™ is 円652.56, compared to a current price of 円1,771.00 — trading 171.4% above its estimated fair value. The current Interest Coverage is 6.75, which is 28% above median its 10-year median of 5.29 and 18.8% below the Vehicles & Parts industry median of 8.31. Daido Metal Co's overall GF Score™ is 60/100 with 9 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 Metal Co (TSE:7245), the current Interest Coverage is 6.75 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 Metal Co (TSE:7245) Overvalued in 2026?
Based on GuruFocus' analysis, Daido Metal Co stock appears to be overvalued.
The current stock price of 円1,771.00 is trading 171.4% above its estimated GF Value™ of 円652.56.
GuruFocus considers Daido Metal Co to be Significantly Overvalued.
Key valuation signals for TSE:7245:
Interest Coverage: 6.75 (28% above median its 10-year median of 5.29)
GF Value™: 円652.56 vs. price of 円1,771.00 (171.4% above fair value)
Industry Position: 18.8% below the Vehicles & Parts median (#622 of 1067)
No single metric tells the full story. See the TSE:7245 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daido Metal Co Ltd manufactures and sells a variety of bearings including automobile engine bearings and large ship engine bearings. The company has a production and sales network in the five-hub system of Japan, North America, Europe, Asia, and China. It manufactures bearings for trucks, construction and agricultural machinery, and bearings for automobile parts such as turbochargers and shock absorbers. Its products portfolio includes metal-polymer bearings, metallic bearings, engine bearing, turbomachinery bearing systems, modular products, pump, centralized lubrication, capacitors and semi-dry processing which are used in including automotive, marine, construction machinery, agricultural machines, industrial, energy, infrastructure and transportation, leisure, and household appliances.
60GF Score
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