KaoKAOCF 82 Interest Coverage is 31.29 as of Mar. 2026, which is 25% below its 10-year median of 41.67. GuruFocus rates KAOCF with a GF Score™ of 82/100 and a GF Value™ of $45.24 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,510 Consumer Packaged Goods companies, Kao ranks better than 77.95% 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. Kao's
Operating Income
for the
three
months ended in Mar. 2026 was $283 Mil. Kao's Interest Expense for the
three
months ended in Mar. 2026 was $-9 Mil.
Kao's interest coverage for the quarter that ended in Mar. 2026 was 31.29.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Kao's Interest Coverage or its related term are showing as below:
KAOCF'
s Interest Coverage Range Over the Past 10 Years
Min: 17.42 Med: 41.67 Max: 55.24
Current: 49.7
KAOCF's Interest Coverage is ranked better than 77.95% of 1510
companies
in the Consumer Packaged Goods industry
Industry Median: 8.64
vs KAOCF: 49.70
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 .
Kao Interest Coverage Related Terms
Kao Interest Coverage Historical Data
* Premium members only.
The historical data trend for Kao'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.
KAOCF vs PG, CL, KVUE: Interest Coverage Comparison
For the Household & Personal Products subindustry, Kao'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.
Kao Interest Coverage vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Kao's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Kao'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.
Kao (KAOCF) has a Interest Coverage of 31.29 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Kao and its competitors. This is 25% below median its historical median of 41.67. Over the past decade, Kao's Interest Coverage has ranged from 17.42 to 55.24. According to the industry distribution chart, Kao ranks #333 out of 1510 companies in the Consumer Packaged Goods industry, placing it in the top 22.1%.
Is Kao's Interest Coverage too high?
Kao's current Interest Coverage of 31.29 is 25% below median its 10-year median of 41.67. Over the past 10 years, this metric has ranged from a low of 17.42 to a high of 55.24. The Consumer Packaged Goods industry median Interest Coverage is 8.64. Kao's value of 31.29 is 262.2% above this industry median. Based on the distribution chart, Kao ranks #333 out of 1510 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Kao has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kao's Interest Coverage compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, Kao ranks #333 out of 1510 companies for Interest Coverage. This places Kao in the top 22% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.64. Kao's value of 31.29 is 262.2% above this benchmark. Historically, Kao's own Interest Coverage has ranged from 17.42 to 55.24 over the past decade. While the company's 10-year median is 41.67 vs. the industry median of 8.64, Kao 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 Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.64, based on 1,510 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. Kao's current Interest Coverage of 31.29 is 262.2% 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 Kao and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kao's current Interest Coverage is 31.29, which is 25% below median its own 10-year median of 41.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kao stock overvalued right now?
Based on GuruFocus' analysis, Kao (KAOCF) is currently considered Fairly Valued. The stock's GF Value™ is $45.24, compared to a current price of $41.82 — trading 7.6% below its estimated fair value. The current Interest Coverage is 31.29, which is 25% below median its 10-year median of 41.67 and 262.2% above the Consumer Packaged Goods industry median of 8.64. Kao's overall GF Score™ is 82/100 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 Kao (KAOCF), the current Interest Coverage is 31.29 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 Kao (KAOCF) Overvalued in 2026?
Based on GuruFocus' analysis, Kao stock appears to be undervalued.
The current stock price of $41.82 is trading 7.6% below its estimated GF Value™ of $45.24.
GuruFocus considers Kao to be Fairly Valued.
Key valuation signals for KAOCF:
Interest Coverage: 31.29 (25% below median its 10-year median of 41.67)
GF Value™: $45.24 vs. price of $41.82 (7.6% below fair value)
Industry Position: 262.2% above the Consumer Packaged Goods median (#333 of 1510)
No single metric tells the full story. See the KAOCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kao is the largest household and personal care product manufacturer in Japan, with a footprint across Asia, Europe, and the Americas. Japan remains its largest market, contributing about 50% of sales and operating profits with several leading brands, including Attack and Bioré. Initially a soap producer established in the 1890s, Kao has expanded into cosmetics, disposable hygiene products, and chemicals, in addition to its homecare and toiletry products. Asia, the largest overseas market, contributes around 15% of group sales. Kao has also acquired several Western skin- and haircare brands, including Jergens, John Frieda, Curél, Molton Brown, and the latest, Oribe.
82GF Score
Get the complete analysis for KAOCF
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