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Watts CoTSE:2735 +1.50%61 Interest Coverage is 129.82 as of Feb. 2026, which is 3% below its 10-year median of 134.48. GuruFocus rates TSE:2735 with a GF Score™ of 61/100 and a GF Value™ of 円689.31 (Fairly Valued). The stock has 4 warning signs investors should review. Among 254 Retail - Defensive companies, Watts Co ranks better than 85.43% 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. Watts Co's
Operating Income
for the
three
months ended in Feb. 2026 was 円586 Mil. Watts Co's Interest Expense for the
three
months ended in Feb. 2026 was 円-5 Mil.
Watts Co's interest coverage for the quarter that ended in Feb. 2026 was 129.82.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Watts Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Watts Co's Interest Coverage or its related term are showing as below:
TSE:2735'
s Interest Coverage Range Over the Past 10 Years
Min: 51.14 Med: 134.48 Max: 338.93
Current: 90.89
TSE:2735's Interest Coverage is ranked better than 85.43% of 254
companies
in the Retail - Defensive industry
Industry Median: 8.7
vs TSE:2735: 90.89
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 .
Watts Co Interest Coverage Related Terms
Watts Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Watts 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.
For the Grocery Stores subindustry, Watts 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.
Watts Co Interest Coverage vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Watts Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Watts 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.
Watts Co (TSE:2735) has a Interest Coverage of 129.82 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Watts Co and its competitors. This is near median its historical median of 134.48. Over the past decade, Watts Co's Interest Coverage has ranged from 51.14 to 338.93. According to the industry distribution chart, Watts Co ranks #37 out of 254 companies in the Retail - Defensive industry, placing it in the top 14.6%.
Is Watts Co's Interest Coverage too high?
Watts Co's current Interest Coverage of 129.82 is near median its 10-year median of 134.48. Over the past 10 years, this metric has ranged from a low of 51.14 to a high of 338.93. The Retail - Defensive industry median Interest Coverage is 8.70. Watts Co's value of 129.82 is 1392.2% above this industry median. Based on the distribution chart, Watts Co ranks #37 out of 254 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, Watts Co has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Watts Co's Interest Coverage compare to KR?
According to the Retail - Defensive industry distribution chart, Watts Co ranks #37 out of 254 companies for Interest Coverage. This places Watts Co in the top 15% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.70. Watts Co's value of 129.82 is 1392.2% above this benchmark. Historically, Watts Co's own Interest Coverage has ranged from 51.14 to 338.93 over the past decade. While the company's 10-year median is 134.48 vs. the industry median of 8.70, Watts 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 Retail - Defensive company?
The median Interest Coverage among Retail - Defensive companies is 8.70, based on 254 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. Watts Co's current Interest Coverage of 129.82 is 1392.2% 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 Watts Co and its competitors. For the Retail - Defensive industry, the median Interest Coverage is 8.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watts Co's current Interest Coverage is 129.82, which is near median its own 10-year median of 134.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watts Co stock overvalued right now?
Based on GuruFocus' analysis, Watts Co (TSE:2735) is currently considered Fairly Valued. The stock's GF Value™ is 円689.31, compared to a current price of 円675.00 — trading 2.1% below its estimated fair value. The current Interest Coverage is 129.82, which is near median its 10-year median of 134.48 and 1392.2% above the Retail - Defensive industry median of 8.70. Watts Co's overall GF Score™ is 61/100 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 Watts Co (TSE:2735), the current Interest Coverage is 129.82 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 Watts Co (TSE:2735) Overvalued in 2026?
Based on GuruFocus' analysis, Watts Co stock appears to be undervalued.
The current stock price of 円675.00 is trading 2.1% below its estimated GF Value™ of 円689.31.
GuruFocus considers Watts Co to be Fairly Valued.
Key valuation signals for TSE:2735:
Interest Coverage: 129.82 (near median its 10-year median of 134.48)
GF Value™: 円689.31 vs. price of 円675.00 (2.1% below fair value)
Industry Position: 1392.2% above the Retail - Defensive median (#37 of 254)
No single metric tells the full story. See the TSE:2735 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Watts Co Ltd is engaged in the wholesale of daily necessities, grocery and food products, and other goods. The company's product profile includes Sanitary goods, Cleaning sheet, Water supply equipment, Lunch supplies, and other related products.
61GF Score
Get the complete analysis for TSE:2735
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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