Sotetsu Holdings (TSE:9003) Debt-to-EBITDA : 3.65 (As of Mar. 2026) — 51% Below Median

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TSE:9003 Sotetsu Holdings Inc TSE:9003
77 GF Score
Price 円2,614.00
GF Value 円2,947.65
Valuation Modestly Undervalued
! 3 Warning Signs
View Full Analysis

What is Sotetsu Holdings Debt-to-EBITDA?

Sotetsu Holdings TSE:9003 -0.70% 77 Debt-to-EBITDA is 3.65 as of Mar. 2026, which is 51% below its 10-year median of 7.40. GuruFocus rates TSE:9003 with a GF Score™ of 77/100 and a GF Value™ of 円2,947.65 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 451 Conglomerates companies, Sotetsu Holdings ranks worse than 80.93% on this metric.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Sotetsu Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was 円68,889 Mil. Sotetsu Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was 円388,232 Mil. Sotetsu Holdings's annualized EBITDA for the quarter that ended in Mar. 2026 was 円125,192 Mil. Sotetsu Holdings's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 3.65.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Sotetsu Holdings's Debt-to-EBITDA or its related term are showing as below:

TSE:9003' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 6.56   Med: 7.4   Max: 30.28
Current: 7

During the past 13 years, the highest Debt-to-EBITDA Ratio of Sotetsu Holdings was 30.28. The lowest was 6.56. And the median was 7.40.

TSE:9003's Debt-to-EBITDA is ranked worse than
80.93% of 451 companies
in the Conglomerates industry
Industry Median: 2.79 vs TSE:9003: 7.00

Sotetsu Holdings  (TSE:9003) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Sotetsu Holdings Debt-to-EBITDA Related Terms


Sotetsu Holdings Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Sotetsu Holdings's Debt-to-EBITDA 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.

Sotetsu Holdings Debt-to-EBITDA Chart

Sotetsu Holdings Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.03 10.08 8.05 7.39 7.13

Sotetsu Holdings Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Debt-to-EBITDA 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 9.81 5.19 303.78 3.65 9.27

TSE:9003 vs MMM, HON: Debt-to-EBITDA Comparison

For the Conglomerates subindustry, Sotetsu Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.


Sotetsu Holdings Debt-to-EBITDA vs Conglomerates Industry

For the Conglomerates industry and Industrials sector, Sotetsu Holdings's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Sotetsu Holdings's Debt-to-EBITDA falls into.


TSE:9003
77GF Score
Sotetsu Holdings Inc TSE:9003
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sotetsu Holdings Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Sotetsu Holdings's Debt-to-EBITDA for the fiscal year that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(68889 + 388232) / 64083
=7.13

Sotetsu Holdings's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(68889 + 388232) / 125192
=3.65

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 3.65 mean?
Sotetsu Holdings (TSE:9003) has a Debt-to-EBITDA of 3.65 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Sotetsu Holdings. This is 51% below median its historical median of 7.40. Over the past decade, Sotetsu Holdings' Debt-to-EBITDA has ranged from 6.56 to 30.28. According to the industry distribution chart, Sotetsu Holdings ranks #365 out of 451 companies in the Conglomerates industry, placing it in the top 80.9%.
Is Sotetsu Holdings' Debt-to-EBITDA too high?
Sotetsu Holdings' current Debt-to-EBITDA of 3.65 is 51% below median its 10-year median of 7.40. Over the past 10 years, this metric has ranged from a low of 6.56 to a high of 30.28. The Conglomerates industry median Debt-to-EBITDA is 2.79. Sotetsu Holdings' value of 3.65 is 30.8% above this industry median. Based on the distribution chart, Sotetsu Holdings ranks #365 out of 451 companies in the Conglomerates industry, which is in the bottom quartile relative to peers. Overall, Sotetsu Holdings has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sotetsu Holdings' Debt-to-EBITDA compare to MMM and HON?
According to the Conglomerates industry distribution chart, Sotetsu Holdings ranks #365 out of 451 companies for Debt-to-EBITDA. This places Sotetsu Holdings in the lower half of its industry. The industry median Debt-to-EBITDA is 2.79. Sotetsu Holdings' value of 3.65 is 30.8% above this benchmark. Historically, Sotetsu Holdings' own Debt-to-EBITDA has ranged from 6.56 to 30.28 over the past decade. While the company's 10-year median is 7.40 vs. the industry median of 2.79, Sotetsu Holdings 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 Debt-to-EBITDA for a Conglomerates company?
The median Debt-to-EBITDA among Conglomerates companies is 2.79, based on 451 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sotetsu Holdings's current Debt-to-EBITDA of 3.65 is 30.8% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Sotetsu Holdings. For the Conglomerates industry, the median Debt-to-EBITDA is 2.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sotetsu Holdings's current Debt-to-EBITDA is 3.65, which is 51% below median its own 10-year median of 7.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sotetsu Holdings stock overvalued right now?
Based on GuruFocus' analysis, Sotetsu Holdings (TSE:9003) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,947.65, compared to a current price of 円2,614.00 — trading 11.3% below its estimated fair value. The current Debt-to-EBITDA is 3.65, which is 51% below median its 10-year median of 7.40 and 30.8% above the Conglomerates industry median of 2.79. Sotetsu Holdings' overall GF Score™ is 77/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Sotetsu Holdings (TSE:9003), the current Debt-to-EBITDA is 3.65 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 Sotetsu Holdings (TSE:9003) Overvalued in 2026?

Based on GuruFocus' analysis, Sotetsu Holdings stock appears to be undervalued. The current stock price of 円2,614.00 is trading 11.3% below its estimated GF Value™ of 円2,947.65. GuruFocus considers Sotetsu Holdings to be Modestly Undervalued.

Key valuation signals for TSE:9003:

  • Debt-to-EBITDA: 3.65 (51% below median its 10-year median of 7.40)
  • GF Value™: 円2,947.65 vs. price of 円2,614.00 (11.3% below fair value)
  • GF Score™: 77/100 with 3 warning signs
  • Industry Position: 30.8% above the Conglomerates median (#365 of 451)

No single metric tells the full story. See the TSE:9003 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sotetsu Holdings Business Description

Address 2-9-14 Kita Saiwa Nishi-ku, Yokohama-shi, JPN, 220-0004
Sotetsu Holdings Inc is a Japanese operator of railway trains and busses. Next to the core business of transporting people and freight, the company operates a real estate business selling and leasing real estate and offers construction works and building maintenance services. Other business ventures include golf courses, hotels, and travel agents.
77GF Score

Get the complete analysis for TSE:9003

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

円2,614.00
Price
円2,947.65
GF Value