Halows Co (TSE:2742) Interest Coverage: 125.14 (As of Feb. 2026) — 69% Above Median

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TSE:2742 Halows Co Ltd TSE:2742
72 GF Score
Price 円3,695.00
GF Value 円5,053.57
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is Halows Co Interest Coverage?

Halows Co TSE:2742 -0.14% 72 Interest Coverage is 125.14 as of Feb. 2026, which is 69% above its 10-year median of 73.92. GuruFocus rates TSE:2742 with a GF Score™ of 72/100 and a GF Value™ of 円5,053.57 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 254 Retail - Defensive companies, Halows Co ranks better than 86.22% 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. Halows Co's Operating Income for the three months ended in Feb. 2026 was 円3,629 Mil. Halows Co's Interest Expense for the three months ended in Feb. 2026 was 円-29 Mil. Halows Co's interest coverage for the quarter that ended in Feb. 2026 was 125.14. 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. Halows Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

TSE:2742' s Interest Coverage Range Over the Past 10 Years
Min: 24.94   Med: 73.92   Max: 130
Current: 115.81


TSE:2742's Interest Coverage is ranked better than
86.22% of 254 companies
in the Retail - Defensive industry
Industry Median: 8.795 vs TSE:2742: 115.81

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


Halows Co  (TSE:2742) 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 .


Halows Co Interest Coverage Related Terms


Halows Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Halows 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.

Halows Co Interest Coverage Chart

Halows Co Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 84.41 91.51 84.97 124.02 130.00

Halows Co Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
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 152.70 127.68 119.52 125.14 94.28

TSE:2742 vs KR: Interest Coverage Comparison

For the Grocery Stores subindustry, Halows 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.


Halows Co Interest Coverage vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Halows Co's Interest Coverage distribution charts can be found below:

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


TSE:2742
72GF Score
Halows Co Ltd TSE:2742
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Halows 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.

Halows Co's Interest Coverage for the fiscal year that ended in Feb. 2026 is calculated as

Here, for the fiscal year that ended in Feb. 2026, Halows Co's Interest Expense was 円-96 Mil. Its Operating Income was 円12,480 Mil. And its Long-Term Debt & Capital Lease Obligation was 円7,228 Mil.

Interest Coverage=-1* Operating Income (A: Feb. 2026 )/Interest Expense (A: Feb. 2026 )
=-1*12480/-96
=130.00

Halows Co's Interest Coverage for the quarter that ended in Feb. 2026 is calculated as

Here, for the three months ended in Feb. 2026, Halows Co's Interest Expense was 円-29 Mil. Its Operating Income was 円3,629 Mil. And its Long-Term Debt & Capital Lease Obligation was 円7,228 Mil.

Interest Coverage=-1* Operating Income (Q: Feb. 2026 )/Interest Expense (Q: Feb. 2026 )
=-1*3629/-29
=125.14

* 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 125.14 mean?
Halows Co (TSE:2742) has a Interest Coverage of 125.14 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Halows Co and its competitors. This is 69% above median its historical median of 73.92. Over the past decade, Halows Co's Interest Coverage has ranged from 24.94 to 130.00. According to the industry distribution chart, Halows Co ranks #35 out of 254 companies in the Retail - Defensive industry, placing it in the top 13.8%.
Is Halows Co's Interest Coverage too high?
Halows Co's current Interest Coverage of 125.14 is 69% above median its 10-year median of 73.92. Over the past 10 years, this metric has ranged from a low of 24.94 to a high of 130.00. The Retail - Defensive industry median Interest Coverage is 8.80. Halows Co's value of 125.14 is 1322.9% above this industry median. Based on the distribution chart, Halows Co ranks #35 out of 254 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, Halows Co has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Halows Co's Interest Coverage compare to KR?
According to the Retail - Defensive industry distribution chart, Halows Co ranks #35 out of 254 companies for Interest Coverage. This places Halows Co in the top 14% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.80. Halows Co's value of 125.14 is 1322.9% above this benchmark. Historically, Halows Co's own Interest Coverage has ranged from 24.94 to 130.00 over the past decade. While the company's 10-year median is 73.92 vs. the industry median of 8.80, Halows 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 8.80, 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. Halows Co's current Interest Coverage of 125.14 is 1322.9% 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 Halows Co and its competitors. For the Retail - Defensive industry, the median Interest Coverage is 8.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Halows Co's current Interest Coverage is 125.14, which is 69% above median its own 10-year median of 73.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Halows Co stock overvalued right now?
Based on GuruFocus' analysis, Halows Co (TSE:2742) is currently considered Modestly Undervalued. The stock's GF Value™ is 円5,053.57, compared to a current price of 円3,695.00 — trading 26.9% below its estimated fair value. The current Interest Coverage is 125.14, which is 69% above median its 10-year median of 73.92 and 1322.9% above the Retail - Defensive industry median of 8.80. Halows Co's overall GF Score™ is 72/100 with 2 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 Halows Co (TSE:2742), the current Interest Coverage is 125.14 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 Halows Co (TSE:2742) Overvalued in 2026?

Based on GuruFocus' analysis, Halows Co stock appears to be undervalued. The current stock price of 円3,695.00 is trading 26.9% below its estimated GF Value™ of 円5,053.57. GuruFocus considers Halows Co to be Modestly Undervalued.

Key valuation signals for TSE:2742:

  • Interest Coverage: 125.14 (69% above median its 10-year median of 73.92)
  • GF Value™: 円5,053.57 vs. price of 円3,695.00 (26.9% below fair value)
  • GF Score™: 72/100 with 2 warning signs
  • Industry Position: 1322.9% above the Retail - Defensive median (#35 of 254)

No single metric tells the full story. See the TSE:2742 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Halows Co Business Description

Address 3270 Hayashima, Hayashima-cho, Tsukubo-gun, Okayama, JPN, 701-0393
Halows Co Ltd operates food supermarket chain stores in Hiroshima and Okayama Prefectures. Its stores are open 24 hours a day.
72GF Score

Get the complete analysis for TSE:2742

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

円3,695.00
Price
円5,053.57
GF Value