Sala (TSE:2734) Interest Coverage: 7.47 (As of Nov. 2025) — 78% Below Median


TSE:2734 Sala Corp TSE:2734
56 GF Score
Price 円1,093.00
GF Value 円856.36
Valuation Modestly Overvalued
! 4 Warning Signs
View Full Analysis

What is Sala Interest Coverage?

Sala TSE:2734 +1.49% 56 Interest Coverage is 7.47 as of Nov. 2025, which is 78% below its 10-year median of 34.54. GuruFocus rates TSE:2734 with a GF Score™ of 56/100 and a GF Value™ of 円856.36 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 427 Conglomerates companies, Sala ranks better than 77.52% 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. Sala's Operating Income for the six months ended in Nov. 2025 was 円1,494 Mil. Sala's Interest Expense for the six months ended in Nov. 2025 was 円-200 Mil. Sala's interest coverage for the quarter that ended in Nov. 2025 was 7.47. The higher the ratio, the stronger the company's financial strength is.

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

TSE:2734' s Interest Coverage Range Over the Past 10 Years
Min: 15.45   Med: 34.54   Max: 48.19
Current: 20


TSE:2734's Interest Coverage is ranked better than
77.52% of 427 companies
in the Conglomerates industry
Industry Median: 5.29 vs TSE:2734: 20.00

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


Sala  (TSE:2734) 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 .


Sala Interest Coverage Related Terms


Sala Interest Coverage Historical Data

* Premium members only.

The historical data trend for Sala'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.

Sala Interest Coverage Chart

Sala Annual Data
Trend Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24 Nov25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 43.95 48.19 39.51 29.21 20.00

Sala Semi-Annual Data
May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24 Nov24 May25 Nov25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.11 50.40 11.93 34.83 7.47

TSE:2734 vs HON, MMM: Interest Coverage Comparison

For the Conglomerates subindustry, Sala'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.


Sala Interest Coverage vs Conglomerates Industry

For the Conglomerates industry and Industrials sector, Sala's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sala's Interest Coverage falls into.


TSE:2734
56GF Score
Sala Corp TSE:2734
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sala 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.

Sala's Interest Coverage for the fiscal year that ended in Nov. 2025 is calculated as

Here, for the fiscal year that ended in Nov. 2025, Sala's Interest Expense was 円-369 Mil. Its Operating Income was 円7,381 Mil. And its Long-Term Debt & Capital Lease Obligation was 円48,016 Mil.

Interest Coverage=-1* Operating Income (A: Nov. 2025 )/Interest Expense (A: Nov. 2025 )
=-1*7381/-369
=20.00

Sala's Interest Coverage for the quarter that ended in Nov. 2025 is calculated as

Here, for the six months ended in Nov. 2025, Sala's Interest Expense was 円-200 Mil. Its Operating Income was 円1,494 Mil. And its Long-Term Debt & Capital Lease Obligation was 円48,016 Mil.

Interest Coverage=-1* Operating Income (Q: Nov. 2025 )/Interest Expense (Q: Nov. 2025 )
=-1*1494/-200
=7.47

* 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 7.47 mean?
Sala (TSE:2734) has a Interest Coverage of 7.47 as of Nov. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sala and its competitors. This is 78% below median its historical median of 34.54. Over the past decade, Sala's Interest Coverage has ranged from 15.45 to 48.19. According to the industry distribution chart, Sala ranks #96 out of 427 companies in the Conglomerates industry, placing it in the top 22.5%.
Is Sala's Interest Coverage too high?
Sala's current Interest Coverage of 7.47 is 78% below median its 10-year median of 34.54. Over the past 10 years, this metric has ranged from a low of 15.45 to a high of 48.19. The Conglomerates industry median Interest Coverage is 5.29. Sala's value of 7.47 is 41.2% above this industry median. Based on the distribution chart, Sala ranks #96 out of 427 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Sala has a GF Score™ of 56/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sala's Interest Coverage compare to HON and MMM?
According to the Conglomerates industry distribution chart, Sala ranks #96 out of 427 companies for Interest Coverage. This places Sala in the top 23% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 5.29. Sala's value of 7.47 is 41.2% above this benchmark. Historically, Sala's own Interest Coverage has ranged from 15.45 to 48.19 over the past decade. While the company's 10-year median is 34.54 vs. the industry median of 5.29, Sala 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 Conglomerates company?
The median Interest Coverage among Conglomerates companies is 5.29, based on 427 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. Sala's current Interest Coverage of 7.47 is 41.2% 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 Sala and its competitors. For the Conglomerates industry, the median Interest Coverage is 5.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sala's current Interest Coverage is 7.47, which is 78% below median its own 10-year median of 34.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sala stock overvalued right now?
Based on GuruFocus' analysis, Sala (TSE:2734) is currently considered Modestly Overvalued. The stock's GF Value™ is 円856.36, compared to a current price of 円1,093.00 — trading 27.6% above its estimated fair value. The current Interest Coverage is 7.47, which is 78% below median its 10-year median of 34.54 and 41.2% above the Conglomerates industry median of 5.29. Sala's overall GF Score™ is 56/100 with 4 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 Sala (TSE:2734), the current Interest Coverage is 7.47 as of Nov. 2025. 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 Sala (TSE:2734) Overvalued in 2026?

Based on GuruFocus' analysis, Sala stock appears to be overvalued. The current stock price of 円1,093.00 is trading 27.6% above its estimated GF Value™ of 円856.36. GuruFocus considers Sala to be Modestly Overvalued.

Key valuation signals for TSE:2734:

  • Interest Coverage: 7.47 (78% below median its 10-year median of 34.54)
  • GF Value™: 円856.36 vs. price of 円1,093.00 (27.6% above fair value)
  • GF Score™: 56/100 with 4 warning signs
  • Industry Position: 41.2% above the Conglomerates median (#96 of 427)

No single metric tells the full story. See the TSE:2734 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sala Business Description

Address Sala Tower, 1-55 Ekimae-odori, Aichi Prefecture, Toyohashi, JPN, 440-8533
Sala Corp is a holding company engaged in the management and operation of subsidiaries. The company operates in Energy and Solutions, Car Life Support, Housing, Engineering and Maintenance, Animal Health Care, and Properties businesses.
56GF Score

Get the complete analysis for TSE:2734

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,093.00
Price
円856.36
GF Value