Otsuka Holdings CoSTU:OS1 -1.67%86 Interest Coverage is 57.86 as of Mar. 2026, which is 184% above its 10-year median of 20.36. GuruFocus rates STU:OS1 with a GF Score™ of 86/100 and a GF Value™ of €45.23 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 685 Drug Manufacturers companies, Otsuka Holdings Co ranks better than 64.96% 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. Otsuka Holdings Co's
Operating Income
for the
three
months ended in Mar. 2026 was €644 Mil. Otsuka Holdings Co's Interest Expense for the
three
months ended in Mar. 2026 was €-11 Mil.
Otsuka Holdings Co's interest coverage for the quarter that ended in Mar. 2026 was 57.86.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Otsuka Holdings Co's Interest Coverage or its related term are showing as below:
STU:OS1'
s Interest Coverage Range Over the Past 10 Years
Min: 6.49 Med: 20.36 Max: 47.32
Current: 30.88
STU:OS1's Interest Coverage is ranked better than 64.96% of 685
companies
in the Drug Manufacturers industry
Industry Median: 12.78
vs STU:OS1: 30.88
Otsuka Holdings Co (STU:OS1) 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 .
Otsuka Holdings Co Interest Coverage Related Terms
Otsuka Holdings Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Otsuka Holdings 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.
STU:OS1 vs LLY, JNJ, ABBV: Interest Coverage Comparison
For the Drug Manufacturers - General subindustry, Otsuka Holdings 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.
Otsuka Holdings Co Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Otsuka Holdings Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Otsuka Holdings 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.
Otsuka Holdings Co (STU:OS1) has a Interest Coverage of 57.86 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Otsuka Holdings Co and its competitors. This is 184% above median its historical median of 20.36. Over the past decade, Otsuka Holdings Co's Interest Coverage has ranged from 6.49 to 47.32. According to the industry distribution chart, Otsuka Holdings Co ranks #240 out of 685 companies in the Drug Manufacturers industry, placing it in the top 35%.
Is Otsuka Holdings Co's Interest Coverage too high?
Otsuka Holdings Co's current Interest Coverage of 57.86 is 184% above median its 10-year median of 20.36. Over the past 10 years, this metric has ranged from a low of 6.49 to a high of 47.32. The Drug Manufacturers industry median Interest Coverage is 12.78. Otsuka Holdings Co's value of 57.86 is 352.7% above this industry median. Based on the distribution chart, Otsuka Holdings Co ranks #240 out of 685 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Otsuka Holdings Co has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Otsuka Holdings Co's Interest Coverage compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Otsuka Holdings Co ranks #240 out of 685 companies for Interest Coverage. This puts Otsuka Holdings Co in the upper half of its industry. The industry median Interest Coverage is 12.78. Otsuka Holdings Co's value of 57.86 is 352.7% above this benchmark. Historically, Otsuka Holdings Co's own Interest Coverage has ranged from 6.49 to 47.32 over the past decade. While the company's 10-year median is 20.36 vs. the industry median of 12.78, Otsuka Holdings 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.78, based on 685 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. Otsuka Holdings Co's current Interest Coverage of 57.86 is 352.7% 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 Otsuka Holdings Co and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otsuka Holdings Co's current Interest Coverage is 57.86, which is 184% above median its own 10-year median of 20.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otsuka Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Otsuka Holdings Co (STU:OS1) is currently considered Modestly Overvalued. The stock's GF Value™ is €45.23, compared to a current price of €59.00 — trading 30.4% above its estimated fair value. The current Interest Coverage is 57.86, which is 184% above median its 10-year median of 20.36 and 352.7% above the Drug Manufacturers industry median of 12.78. Otsuka Holdings Co's overall GF Score™ is 86/100 with 1 warning sign 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 Otsuka Holdings Co (STU:OS1), the current Interest Coverage is 57.86 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 Otsuka Holdings Co (STU:OS1) Overvalued in 2026?
Based on GuruFocus' analysis, Otsuka Holdings Co stock appears to be overvalued.
The current stock price of €59.00 is trading 30.4% above its estimated GF Value™ of €45.23.
GuruFocus considers Otsuka Holdings Co to be Modestly Overvalued.
Key valuation signals for STU:OS1:
Interest Coverage: 57.86 (184% above median its 10-year median of 20.36)
GF Value™: €45.23 vs. price of €59.00 (30.4% above fair value)
Industry Position: 352.7% above the Drug Manufacturers median (#240 of 685)
No single metric tells the full story. See the STU:OS1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Otsuka Holdings Co Ltd is a Japan-based company that operates in pharmaceuticals, nutraceuticals, and consumer products. It operates through four reportable segments: Medical-related Business, Nutraceutical-related Business, Consumer-related Business, and Other Business. The Medical Business manufactures and sells therapeutic drugs and infusions, the Nutraceutical Business produces functional foods, beverages, and nutritional supplements, the Consumer Business offers mineral water, beverages, and foods, while the Other Business provides storage services and manufactures chemicals and analytical equipment. It generates the majority of its revenue from the medical-related business segment.
86GF Score
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