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. Hikari Holdings Co's
Operating Income
for the
six
months ended in Feb. 2026 was 円135 Mil. Hikari Holdings Co's Interest Expense for the
six
months ended in Feb. 2026 was 円-26 Mil.
Hikari Holdings Co's interest coverage for the quarter that ended in Feb. 2026 was 5.09.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Hikari Holdings Co Ltd interest coverage is 1.43, which is low.
The historical rank and industry rank for Hikari Holdings Co's Interest Coverage or its related term are showing as below:
TSE:1445'
s Interest Coverage Range Over the Past 10 Years
Min: 0.7 Med: 1.38 Max: 3.98
Current: 1.43
TSE:1445's Interest Coverage is not ranked
in the Conglomerates industry.
Industry Median: 5.31
vs TSE:1445: 1.43
Hikari Holdings Co (TSE:1445) 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 .
Hikari Holdings Co Interest Coverage Related Terms
Hikari Holdings Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hikari 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.
TSE:1445 vs HON, MMM: Interest Coverage Comparison
For the Conglomerates subindustry, Hikari 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.
Hikari Holdings Co Interest Coverage vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hikari Holdings Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hikari 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.
Hikari Holdings Co (TSE:1445) has a Interest Coverage of 5.09 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hikari Holdings Co and its competitors. This is 269% above median its historical median of 1.38. Over the past decade, Hikari Holdings Co's Interest Coverage has ranged from 0.70 to 3.98.
Is Hikari Holdings Co's Interest Coverage too high?
Hikari Holdings Co's current Interest Coverage of 5.09 is 269% above median its 10-year median of 1.38. Over the past 10 years, this metric has ranged from a low of 0.70 to a high of 3.98. The Conglomerates industry median Interest Coverage is 5.31. Hikari Holdings Co's value of 5.09 is 4.1% below this industry median. Overall, Hikari Holdings Co has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Hikari Holdings Co's Interest Coverage compare to HON and MMM?
Hikari Holdings Co's Interest Coverage of 5.09 can be compared against companies in the Conglomerates industry. The industry median Interest Coverage is 5.31. Hikari Holdings Co's value of 5.09 is 4.1% below this benchmark. Historically, Hikari Holdings Co's own Interest Coverage has ranged from 0.70 to 3.98 over the past decade. While the company's 10-year median is 1.38 vs. the industry median of 5.31, Hikari Holdings Co 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 Conglomerates company?
The median Interest Coverage among Conglomerates companies is 5.31, based on 428 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. Hikari Holdings Co's current Interest Coverage of 5.09 is 4.1% 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 Hikari Holdings Co and its competitors. For the Conglomerates industry, the median Interest Coverage is 5.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikari Holdings Co's current Interest Coverage is 5.09, which is 269% above median its own 10-year median of 1.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hikari Holdings Co stock overvalued right now?
Hikari Holdings Co (TSE:1445) has a current Interest Coverage of 5.09. The stock's GF Value™ is 円4,506.62, compared to a current price of 円2,900.00 — trading 35.7% below its estimated fair value. The current Interest Coverage is 5.09, which is 269% above median its 10-year median of 1.38 and 4.1% below the Conglomerates industry median of 5.31. Hikari Holdings Co's overall GF Score™ is 16/100 with 7 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 Hikari Holdings Co (TSE:1445), the current Interest Coverage is 5.09 as of Feb. 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 Hikari Holdings Co (TSE:1445) Overvalued in 2026?
Based on GuruFocus' analysis, Hikari Holdings Co stock appears to be undervalued.
The current stock price of 円2,900.00 is trading 35.7% below its estimated GF Value™ of 円4,506.62.
Key valuation signals for TSE:1445:
Interest Coverage: 5.09 (269% above median its 10-year median of 1.38)
GF Value™: 円4,506.62 vs. price of 円2,900.00 (35.7% below fair value)
Industry Position: 4.1% below the Conglomerates median
No single metric tells the full story. See the TSE:1445 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hikari Holdings Co Ltd is engaged in construction-related businesses with five reportable segments: Tile and Stone Processing and Sales Business, General Building Materials Business, Telecommunications Construction Business, Civil Engineering Work Business, and General Renovation Construction Business. The company provides a wide range of services, including processing and sales of interior and exterior materials, construction work using tiles and stone, telecommunications system design and supervision, public works projects like sewerage and road improvements, and comprehensive renovation work such as tile renovation and ultra-high pressure cleaning. It generates the majority of its revenue from the General Building Materials Business segment.
16GF 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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