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. Sumitomo Realty & Development Co's
Operating Income
for the
three
months ended in Mar. 2026 was €331 Mil. Sumitomo Realty & Development Co's Interest Expense for the
three
months ended in Mar. 2026 was €-39 Mil.
Sumitomo Realty & Development Co's interest coverage for the quarter that ended in Mar. 2026 was 8.42.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Sumitomo Realty & Development Co's Interest Coverage or its related term are showing as below:
FRA:RL2'
s Interest Coverage Range Over the Past 10 Years
Min: 8.72 Med: 12.09 Max: 14.18
Current: 10.99
FRA:RL2's Interest Coverage is ranked better than 70.89% of 1295
companies
in the Real Estate industry
Industry Median: 4.24
vs FRA:RL2: 10.99
Sumitomo Realty & Development Co (FRA:RL2) 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 .
Sumitomo Realty & Development Co Interest Coverage Related Terms
Sumitomo Realty & Development Co Interest Coverage Historical Data
* 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.
Sumitomo Realty & Development Co Interest Coverage Chart
FRA:RL2 vs CBRE, BEKE, CSGP: Interest Coverage Comparison
For the Real Estate Services subindustry, Sumitomo Realty & Development 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.
Sumitomo Realty & Development Co Interest Coverage vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Sumitomo Realty & Development Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Sumitomo Realty & Development Co's Interest Coverage falls into.
Sumitomo Realty & Development Co 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:
* 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.
Sumitomo Realty & Development Co (FRA:RL2) has a Interest Coverage of 8.42 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sumitomo Realty & Development Co and its competitors. This is 30% below median its historical median of 12.09. Over the past decade, Sumitomo Realty & Development Co's Interest Coverage has ranged from 8.72 to 14.18. According to the industry distribution chart, Sumitomo Realty & Development Co ranks #377 out of 1295 companies in the Real Estate industry, placing it in the top 29.1%.
Is Sumitomo Realty & Development Co's Interest Coverage too high?
Sumitomo Realty & Development Co's current Interest Coverage of 8.42 is 30% below median its 10-year median of 12.09. Over the past 10 years, this metric has ranged from a low of 8.72 to a high of 14.18. The Real Estate industry median Interest Coverage is 4.24. Sumitomo Realty & Development Co's value of 8.42 is 98.6% above this industry median. Based on the distribution chart, Sumitomo Realty & Development Co ranks #377 out of 1295 companies in the Real Estate industry, which is above the industry midpoint. Overall, Sumitomo Realty & Development Co has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Realty & Development Co's Interest Coverage compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Sumitomo Realty & Development Co ranks #377 out of 1295 companies for Interest Coverage. This puts Sumitomo Realty & Development Co in the upper half of its industry. The industry median Interest Coverage is 4.24. Sumitomo Realty & Development Co's value of 8.42 is 98.6% above this benchmark. Historically, Sumitomo Realty & Development Co's own Interest Coverage has ranged from 8.72 to 14.18 over the past decade. While the company's 10-year median is 12.09 vs. the industry median of 4.24, Sumitomo Realty & Development 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 a Real Estate company?
The median Interest Coverage among Real Estate companies is 4.24, based on 1,295 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. Sumitomo Realty & Development Co's current Interest Coverage of 8.42 is 98.6% 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 Sumitomo Realty & Development Co and its competitors. For the Real Estate industry, the median Interest Coverage is 4.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Realty & Development Co's current Interest Coverage is 8.42, which is 30% below median its own 10-year median of 12.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Realty & Development Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Realty & Development Co (FRA:RL2) is currently considered Modestly Overvalued. The stock's GF Value™ is €14.78, compared to a current price of €19.20 — trading 29.9% above its estimated fair value. The current Interest Coverage is 8.42, which is 30% below median its 10-year median of 12.09 and 98.6% above the Real Estate industry median of 4.24. Sumitomo Realty & Development Co's overall GF Score™ is 79/100 with 3 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 Sumitomo Realty & Development Co (FRA:RL2), the current Interest Coverage is 8.42 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 Sumitomo Realty & Development Co (FRA:RL2) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Realty & Development Co stock appears to be overvalued.
The current stock price of €19.20 is trading 29.9% above its estimated GF Value™ of €14.78.
GuruFocus considers Sumitomo Realty & Development Co to be Modestly Overvalued.
Key valuation signals for FRA:RL2:
Interest Coverage: 8.42 (30% below median its 10-year median of 12.09)
GF Value™: €14.78 vs. price of €19.20 (29.9% above fair value)
Industry Position: 98.6% above the Real Estate median (#377 of 1295)
No single metric tells the full story. See the FRA:RL2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Realty & Development Co Business Description
Sumitomo Realty & Development is a Japan-based company engaged in the real estate business. The company operates through four segments. The Completed Construction segment covers construction and renovation contracts for detached houses and condominiums. The Real Estate Distribution segment involves brokerage and sales agency services. The Real Estate Rental segment includes leasing and management of office buildings, condominiums, hotels, event halls, and commercial facilities. The Real Estate Sales segment focuses on condominiums and detached houses, and the Others segment covers businesses such as fitness clubs and restaurants. It generates the majority of its revenue from the Real estate rental segment.
79GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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