Sekisui HouseFRA:SPH1 +0.34%88 Interest Coverage is 7.63 as of Apr. 2026, which is 83% below its 10-year median of 45.47. GuruFocus rates FRA:SPH1 with a GF Score™ of 88/100 and a GF Value™ of €22.14 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 78 Homebuilding & Construction companies, Sekisui House ranks better than 53.85% 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. Sekisui House's
Operating Income
for the
three
months ended in Apr. 2026 was €409 Mil. Sekisui House's Interest Expense for the
three
months ended in Apr. 2026 was €-54 Mil.
Sekisui House's interest coverage for the quarter that ended in Apr. 2026 was 7.63.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Sekisui House's Interest Coverage or its related term are showing as below:
FRA:SPH1'
s Interest Coverage Range Over the Past 10 Years
Min: 8.71 Med: 45.47 Max: 79.18
Current: 8.93
FRA:SPH1's Interest Coverage is ranked better than 53.85% of 78
companies
in the Homebuilding & Construction industry
Industry Median: 8.305
vs FRA:SPH1: 8.93
Sekisui House (FRA:SPH1) 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 .
Sekisui House Interest Coverage Related Terms
Sekisui House Interest Coverage Historical Data
* Premium members only.
The historical data trend for Sekisui House'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.
FRA:SPH1 vs DHI, PHM, LEN: Interest Coverage Comparison
For the Residential Construction subindustry, Sekisui House'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.
Sekisui House Interest Coverage vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Sekisui House's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Sekisui House'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.
Sekisui House (FRA:SPH1) has a Interest Coverage of 7.63 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sekisui House and its competitors. This is 83% below median its historical median of 45.47. Over the past decade, Sekisui House's Interest Coverage has ranged from 8.71 to 79.18. According to the industry distribution chart, Sekisui House ranks #36 out of 78 companies in the Homebuilding & Construction industry, placing it in the top 46.2%.
Is Sekisui House's Interest Coverage too high?
Sekisui House's current Interest Coverage of 7.63 is 83% below median its 10-year median of 45.47. Over the past 10 years, this metric has ranged from a low of 8.71 to a high of 79.18. The Homebuilding & Construction industry median Interest Coverage is 8.31. Sekisui House's value of 7.63 is 8.1% below this industry median. Based on the distribution chart, Sekisui House ranks #36 out of 78 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Sekisui House has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sekisui House's Interest Coverage compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Sekisui House ranks #36 out of 78 companies for Interest Coverage. This puts Sekisui House in the upper half of its industry. The industry median Interest Coverage is 8.31. Sekisui House's value of 7.63 is 8.1% below this benchmark. Historically, Sekisui House's own Interest Coverage has ranged from 8.71 to 79.18 over the past decade. While the company's 10-year median is 45.47 vs. the industry median of 8.31, Sekisui House 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 Homebuilding & Construction company?
The median Interest Coverage among Homebuilding & Construction companies is 8.31, based on 78 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. Sekisui House's current Interest Coverage of 7.63 is 8.1% 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 Sekisui House and its competitors. For the Homebuilding & Construction 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. Sekisui House's current Interest Coverage is 7.63, which is 83% below median its own 10-year median of 45.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sekisui House stock overvalued right now?
Based on GuruFocus' analysis, Sekisui House (FRA:SPH1) is currently considered Modestly Undervalued. The stock's GF Value™ is €22.14, compared to a current price of €17.92 — trading 19.1% below its estimated fair value. The current Interest Coverage is 7.63, which is 83% below median its 10-year median of 45.47 and 8.1% below the Homebuilding & Construction industry median of 8.31. Sekisui House's overall GF Score™ is 88/100 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 Sekisui House (FRA:SPH1), the current Interest Coverage is 7.63 as of Apr. 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 Sekisui House (FRA:SPH1) Overvalued in 2026?
Based on GuruFocus' analysis, Sekisui House stock appears to be undervalued.
The current stock price of €17.92 is trading 19.1% below its estimated GF Value™ of €22.14.
GuruFocus considers Sekisui House to be Modestly Undervalued.
Key valuation signals for FRA:SPH1:
Interest Coverage: 7.63 (83% below median its 10-year median of 45.47)
GF Value™: €22.14 vs. price of €17.92 (19.1% below fair value)
Industry Position: 8.1% below the Homebuilding & Construction median (#36 of 78)
No single metric tells the full story. See the FRA:SPH1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sekisui House Ltd company's activities includes equity-method affiliates, is involved in the Custom Detached Houses Business, Rental Housing and Commercial Buildings Business, Architectural/Civil Engineering Business, Rental Housing Management Business, Remodeling Business, Development Business, Overseas Business, and carries out related business activities. Segments includes Custom detached houses Business, Rental housing and commercial buildings Business, Architectural / Civil engineering Business, Rental housing management Business, Remodeling Business, Development Business, and Overseas Business of which majority of revenue comes from Rental housing and commercial buildings Business.
88GF Score
Get the complete analysis for FRA:SPH1
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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