Tokyu Construction CoTSE:1720 +0.76%74 Interest Coverage is 34.36 as of Mar. 2026, which is 7% below its 10-year median of 36.81. GuruFocus rates TSE:1720 with a GF Score™ of 74/100 and a GF Value™ of 円949.56 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 1,349 Construction companies, Tokyu Construction Co ranks better than 77.24% 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. Tokyu Construction Co's
Operating Income
for the
three
months ended in Mar. 2026 was 円5,978 Mil. Tokyu Construction Co's Interest Expense for the
three
months ended in Mar. 2026 was 円-174 Mil.
Tokyu Construction Co's interest coverage for the quarter that ended in Mar. 2026 was 34.36.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Tokyu Construction Co's Interest Coverage or its related term are showing as below:
TSE:1720'
s Interest Coverage Range Over the Past 10 Years
Min: 18.3 Med: 36.81 Max: 323.34
Current: 36.81
TSE:1720's Interest Coverage is ranked better than 77.24% of 1349
companies
in the Construction industry
Industry Median: 7.92
vs TSE:1720: 36.81
Tokyu Construction Co (TSE:1720) 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 .
Tokyu Construction Co Interest Coverage Related Terms
Tokyu Construction Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Tokyu Construction 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:1720 vs PWR, FIX, EME: Interest Coverage Comparison
For the Engineering & Construction subindustry, Tokyu Construction 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.
Tokyu Construction Co Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, Tokyu Construction Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tokyu Construction Co's Interest Coverage falls into.
Tokyu Construction Co Interest Coverage Calculation
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.
Tokyu Construction Co (TSE:1720) has a Interest Coverage of 34.36 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tokyu Construction Co and its competitors. This is near median its historical median of 36.81. Over the past decade, Tokyu Construction Co's Interest Coverage has ranged from 18.30 to 323.34. According to the industry distribution chart, Tokyu Construction Co ranks #307 out of 1349 companies in the Construction industry, placing it in the top 22.8%.
Is Tokyu Construction Co's Interest Coverage too high?
Tokyu Construction Co's current Interest Coverage of 34.36 is near median its 10-year median of 36.81. Over the past 10 years, this metric has ranged from a low of 18.30 to a high of 323.34. The Construction industry median Interest Coverage is 7.92. Tokyu Construction Co's value of 34.36 is 333.8% above this industry median. Based on the distribution chart, Tokyu Construction Co ranks #307 out of 1349 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Tokyu Construction Co has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tokyu Construction Co's Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, Tokyu Construction Co ranks #307 out of 1349 companies for Interest Coverage. This places Tokyu Construction Co in the top 23% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 7.92. Tokyu Construction Co's value of 34.36 is 333.8% above this benchmark. Historically, Tokyu Construction Co's own Interest Coverage has ranged from 18.30 to 323.34 over the past decade. While the company's 10-year median is 36.81 vs. the industry median of 7.92, Tokyu Construction 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 Construction company?
The median Interest Coverage among Construction companies is 7.92, based on 1,349 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. Tokyu Construction Co's current Interest Coverage of 34.36 is 333.8% 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 Tokyu Construction Co and its competitors. For the Construction industry, the median Interest Coverage is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokyu Construction Co's current Interest Coverage is 34.36, which is near median its own 10-year median of 36.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokyu Construction Co stock overvalued right now?
Based on GuruFocus' analysis, Tokyu Construction Co (TSE:1720) is currently considered Modestly Overvalued. The stock's GF Value™ is 円949.56, compared to a current price of 円1,189.00 — trading 25.2% above its estimated fair value. The current Interest Coverage is 34.36, which is near median its 10-year median of 36.81 and 333.8% above the Construction industry median of 7.92. Tokyu Construction Co's overall GF Score™ is 74/100 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 Tokyu Construction Co (TSE:1720), the current Interest Coverage is 34.36 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 Tokyu Construction Co (TSE:1720) Overvalued in 2026?
Based on GuruFocus' analysis, Tokyu Construction Co stock appears to be overvalued.
The current stock price of 円1,189.00 is trading 25.2% above its estimated GF Value™ of 円949.56.
GuruFocus considers Tokyu Construction Co to be Modestly Overvalued.
Key valuation signals for TSE:1720:
Interest Coverage: 34.36 (near median its 10-year median of 36.81)
GF Value™: 円949.56 vs. price of 円1,189.00 (25.2% above fair value)
Industry Position: 333.8% above the Construction median (#307 of 1349)
No single metric tells the full story. See the TSE:1720 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokyu Construction Co Ltd is a Japan-based company that provides various construction-related services. The company's services include civil engineering and building construction, investigation, construction planning, geological surveying, consultancy services, measurement, designing, building maintenance and supervision, real estate leasing, and worker dispatching. Its construction activities encompass educational facilities, offices, hotels, commercial facilities, environmental improvement facilities, care facilities, hospitals, logistics facilities, factories, roads, sports facilities, airports, and so on.
74GF Score
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