Neo Home Co (TSE:172A) Interest Coverage: 8.63 (As of Jan. 2026) — 134% Above Median


TSE:172A Neo Home Co Ltd TSE:172A
22 GF Score
Price 円2,234.00
! 5 Warning Signs
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What is Neo Home Co Interest Coverage?

Neo Home Co TSE:172A 22 Interest Coverage is 8.63 as of Jan. 2026, which is 134% above its 10-year median of 3.69. GuruFocus rates TSE:172A with a GF Score™ of 22/100. The stock has 5 warning signs investors should review.

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. Neo Home Co's Operating Income for the six months ended in Jan. 2026 was 円75 Mil. Neo Home Co's Interest Expense for the six months ended in Jan. 2026 was 円-9 Mil. Neo Home Co's interest coverage for the quarter that ended in Jan. 2026 was 8.63. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Neo Home Co's Interest Coverage or its related term are showing as below:

TSE:172A' s Interest Coverage Range Over the Past 10 Years
Min: 2.01   Med: 3.69   Max: 14.07
Current: 7.04


TSE:172A's Interest Coverage is not ranked
in the Real Estate industry.
Industry Median: 4.245 vs TSE:172A: 7.04

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Neo Home Co  (TSE:172A) 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 .


Neo Home Co Interest Coverage Related Terms


Neo Home Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Neo Home 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.

Neo Home Co Interest Coverage Chart

Neo Home Co Annual Data
Trend Jul22 Jul23 Jul24 Jul25
Interest Coverage
14.07 3.89 3.49 2.01

Neo Home Co Semi-Annual Data
Jul22 Jul23 Jan24 Jul24 Jan25 Jul25 Jan26
Interest Coverage Get a 7-Day Free Trial 1.23 4.94 0.00 5.54 8.63

TSE:172A vs : Interest Coverage Comparison

For the Real Estate - Development subindustry, Neo Home 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.


Neo Home Co Interest Coverage vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Neo Home Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Neo Home Co's Interest Coverage falls into.


TSE:172A
22GF Score
Neo Home Co Ltd TSE:172A
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Neo Home 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Neo Home Co's Interest Coverage for the fiscal year that ended in Jul. 2025 is calculated as

Here, for the fiscal year that ended in Jul. 2025, Neo Home Co's Interest Expense was 円-15 Mil. Its Operating Income was 円30 Mil. And its Long-Term Debt & Capital Lease Obligation was 円105 Mil.

Interest Coverage=-1* Operating Income (A: Jul. 2025 )/Interest Expense (A: Jul. 2025 )
=-1*29.55/-14.727
=2.01

Neo Home Co's Interest Coverage for the quarter that ended in Jan. 2026 is calculated as

Here, for the six months ended in Jan. 2026, Neo Home Co's Interest Expense was 円-9 Mil. Its Operating Income was 円75 Mil. And its Long-Term Debt & Capital Lease Obligation was 円118 Mil.

Interest Coverage=-1* Operating Income (Q: Jan. 2026 )/Interest Expense (Q: Jan. 2026 )
=-1*74.698/-8.66
=8.63

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 8.63 mean?
Neo Home Co (TSE:172A) has a Interest Coverage of 8.63 as of Jan. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Neo Home Co and its competitors. This is 134% above median its historical median of 3.69. Over the past decade, Neo Home Co's Interest Coverage has ranged from 2.01 to 14.07.
Is Neo Home Co's Interest Coverage too high?
Neo Home Co's current Interest Coverage of 8.63 is 134% above median its 10-year median of 3.69. Over the past 10 years, this metric has ranged from a low of 2.01 to a high of 14.07. The Real Estate industry median Interest Coverage is 4.25. Neo Home Co's value of 8.63 is 103.3% above this industry median. Overall, Neo Home Co has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Neo Home Co's Interest Coverage compare to ?
Neo Home Co's Interest Coverage of 8.63 can be compared against companies in the Real Estate industry. The industry median Interest Coverage is 4.25. Neo Home Co's value of 8.63 is 103.3% above this benchmark. Historically, Neo Home Co's own Interest Coverage has ranged from 2.01 to 14.07 over the past decade. While the company's 10-year median is 3.69 vs. the industry median of 4.25, Neo Home 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 Real Estate company?
The median Interest Coverage among Real Estate companies is 4.25, based on 1,300 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. Neo Home Co's current Interest Coverage of 8.63 is 103.3% 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 Neo Home Co and its competitors. For the Real Estate industry, the median Interest Coverage is 4.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neo Home Co's current Interest Coverage is 8.63, which is 134% above median its own 10-year median of 3.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neo Home Co stock overvalued right now?
Neo Home Co (TSE:172A) has a current Interest Coverage of 8.63. The current Interest Coverage is 8.63, which is 134% above median its 10-year median of 3.69 and 103.3% above the Real Estate industry median of 4.25. Neo Home Co's overall GF Score™ is 22/100 with 5 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 Neo Home Co (TSE:172A), the current Interest Coverage is 8.63 as of Jan. 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.

Neo Home Co Business Description

Comparable Companies
Address 5-5-10 Tamukae, Kumamoto Minami-ku, Kumamoto, JPN, 862-0962
Neo Home Co Ltd is engaged in designing and selling single-family (detached) homes, mainly planned ones.
22GF 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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