Japan Airlines CoJAPSY +2.26%83 Interest Coverage is 7.49 as of Mar. 2026, which is 75% below its 10-year median of 30.39. GuruFocus rates JAPSY with a GF Score™ of 83/100 and a GF Value™ of $9.59 (Fairly Valued). The stock has 3 warning signs investors should review. Among 845 Transportation companies, Japan Airlines Co ranks better than 69.94% 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. Japan Airlines Co's
Operating Income
for the
three
months ended in Mar. 2026 was $208 Mil. Japan Airlines Co's Interest Expense for the
three
months ended in Mar. 2026 was $-28 Mil.
Japan Airlines Co's interest coverage for the quarter that ended in Mar. 2026 was 7.49.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Japan Airlines Co's Interest Coverage or its related term are showing as below:
JAPSY'
s Interest Coverage Range Over the Past 10 Years
Min: 4.58 Med: 30.39 Max: 219.38
Current: 11.85
JAPSY's Interest Coverage is ranked better than 69.94% of 845
companies
in the Transportation industry
Industry Median: 5.66
vs JAPSY: 11.85
Japan Airlines Co (OTCPK:JAPSY) 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 .
Japan Airlines Co Interest Coverage Related Terms
Japan Airlines Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Japan Airlines 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.
JAPSY vs DAL, UAL, LUV: Interest Coverage Comparison
For the Airlines subindustry, Japan Airlines 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.
Japan Airlines Co Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, Japan Airlines Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Japan Airlines 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.
Japan Airlines Co (JAPSY) has a Interest Coverage of 7.49 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Japan Airlines Co and its competitors. This is 75% below median its historical median of 30.39. Over the past decade, Japan Airlines Co's Interest Coverage has ranged from 4.58 to 219.38. According to the industry distribution chart, Japan Airlines Co ranks #254 out of 845 companies in the Transportation industry, placing it in the top 30.1%.
Is Japan Airlines Co's Interest Coverage too high?
Japan Airlines Co's current Interest Coverage of 7.49 is 75% below median its 10-year median of 30.39. Over the past 10 years, this metric has ranged from a low of 4.58 to a high of 219.38. The Transportation industry median Interest Coverage is 5.66. Japan Airlines Co's value of 7.49 is 32.3% above this industry median. Based on the distribution chart, Japan Airlines Co ranks #254 out of 845 companies in the Transportation industry, which is above the industry midpoint. Overall, Japan Airlines Co has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Japan Airlines Co's Interest Coverage compare to DAL and UAL?
According to the Transportation industry distribution chart, Japan Airlines Co ranks #254 out of 845 companies for Interest Coverage. This puts Japan Airlines Co in the upper half of its industry. The industry median Interest Coverage is 5.66. Japan Airlines Co's value of 7.49 is 32.3% above this benchmark. Historically, Japan Airlines Co's own Interest Coverage has ranged from 4.58 to 219.38 over the past decade. While the company's 10-year median is 30.39 vs. the industry median of 5.66, Japan Airlines 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 Transportation company?
The median Interest Coverage among Transportation companies is 5.66, based on 845 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. Japan Airlines Co's current Interest Coverage of 7.49 is 32.3% 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 Japan Airlines Co and its competitors. For the Transportation industry, the median Interest Coverage is 5.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Airlines Co's current Interest Coverage is 7.49, which is 75% below median its own 10-year median of 30.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Airlines Co stock overvalued right now?
Based on GuruFocus' analysis, Japan Airlines Co (JAPSY) is currently considered Fairly Valued. The stock's GF Value™ is $9.59, compared to a current price of $8.80 — trading 8.2% below its estimated fair value. The current Interest Coverage is 7.49, which is 75% below median its 10-year median of 30.39 and 32.3% above the Transportation industry median of 5.66. Japan Airlines Co's overall GF Score™ is 83/100 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 Japan Airlines Co (JAPSY), the current Interest Coverage is 7.49 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 Japan Airlines Co (JAPSY) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Airlines Co stock appears to be undervalued.
The current stock price of $8.80 is trading 8.2% below its estimated GF Value™ of $9.59.
GuruFocus considers Japan Airlines Co to be Fairly Valued.
Key valuation signals for JAPSY:
Interest Coverage: 7.49 (75% below median its 10-year median of 30.39)
GF Value™: $9.59 vs. price of $8.80 (8.2% below fair value)
Industry Position: 32.3% above the Transportation median (#254 of 845)
No single metric tells the full story. See the JAPSY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Airlines Co Ltd is an international air transport services company. It offers scheduled and non-scheduled air transport services and aerial work services. The company operates large aircraft, medium-sized aircraft, small aircraft, and regional jets. The company is also engaged in the travel planning and sales business, which covers travel planning and sales, baggage delivery, system development and operation, ticketing systems for the travel industry, and credit card services related to air travel.
83GF Score
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