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. Topcon's
Operating Income
for the
three
months ended in Sep. 2025 was 円134 Mil. Topcon's Interest Expense for the
three
months ended in Sep. 2025 was 円-579 Mil.
Topcon's interest coverage for the quarter that ended in Sep. 2025 was 0.23.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Topcon Corp interest coverage is 2.01, which is low.
The historical rank and industry rank for Topcon's Interest Coverage or its related term are showing as below:
TSE:7732'
s Interest Coverage Range Over the Past 10 Years
Min: 2.01 Med: 10.81 Max: 25.84
Current: 2.01
TSE:7732's Interest Coverage is not ranked
in the Hardware industry.
Industry Median: 13.73
vs TSE:7732: 2.01
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 .
Topcon Interest Coverage Related Terms
Topcon Interest Coverage Historical Data
* Premium members only.
The historical data trend for Topcon'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:7732 vs GRMN, KEYS, COHR: Interest Coverage Comparison
For the Scientific & Technical Instruments subindustry, Topcon'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.
Topcon Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Topcon's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Topcon'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.
Topcon (TSE:7732) has a Interest Coverage of 0.23 as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Topcon and its competitors. This is 98% below median its historical median of 10.81. Over the past decade, Topcon's Interest Coverage has ranged from 2.01 to 25.84.
Is Topcon's Interest Coverage too high?
Topcon's current Interest Coverage of 0.23 is 98% below median its 10-year median of 10.81. Over the past 10 years, this metric has ranged from a low of 2.01 to a high of 25.84. The Hardware industry median Interest Coverage is 13.73. Topcon's value of 0.23 is 98.3% below this industry median. Overall, Topcon has a GF Score™ of 57/100, reflecting its overall financial health beyond just this single metric.
How does Topcon's Interest Coverage compare to GRMN and KEYS?
Topcon's Interest Coverage of 0.23 can be compared against companies in the Hardware industry. The industry median Interest Coverage is 13.73. Topcon's value of 0.23 is 98.3% below this benchmark. Historically, Topcon's own Interest Coverage has ranged from 2.01 to 25.84 over the past decade. While the company's 10-year median is 10.81 vs. the industry median of 13.73, Topcon 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. Topcon's current Interest Coverage of 0.23 is 98.3% 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 Topcon 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. Topcon's current Interest Coverage is 0.23, which is 98% below median its own 10-year median of 10.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Topcon stock overvalued right now?
Topcon (TSE:7732) has a current Interest Coverage of 0.23. The stock's GF Value™ is 円1,799.46, compared to a current price of 円3,280.00 — trading 82.3% above its estimated fair value. The current Interest Coverage is 0.23, which is 98% below median its 10-year median of 10.81 and 98.3% below the Hardware industry median of 13.73. Topcon's overall GF Score™ is 57/100 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 Topcon (TSE:7732), the current Interest Coverage is 0.23 as of Sep. 2025. 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 Topcon (TSE:7732) Overvalued in 2026?
Based on GuruFocus' analysis, Topcon stock appears to be overvalued.
The current stock price of 円3,280.00 is trading 82.3% above its estimated GF Value™ of 円1,799.46.
Key valuation signals for TSE:7732:
Interest Coverage: 0.23 (98% below median its 10-year median of 10.81)
GF Value™: 円1,799.46 vs. price of 円3,280.00 (82.3% above fair value)
Industry Position: 98.3% below the Hardware median
No single metric tells the full story. See the TSE:7732 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Topcon Corp sells ophthalmic instruments, medical equipment, machine control systems, and GPS-related products. Its operations are structured around three main areas: the Positioning Business, Eye Care Business, and Other. The Positioning division handles products such as total stations, 3D laser scanners, ICT automated construction systems, IT agricultural systems, GNSS receivers for surveying, laser equipment, and software for construction and civil engineering. The Eye Care division provides 3D fundus imaging devices, fundus cameras, auto and kerato refractors, slit lamps, tonometers, lens meters, ophthalmic laser systems, and related software for image management and electronic medical records.
57GF Score
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