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Palemo Holdings CoTSE:2778 48 Interest Coverage is 0.78 as of Feb. 2026, which is 97% below its 10-year median of 30.67. GuruFocus rates TSE:2778 with a GF Score™ of 48/100 and a GF Value™ of 円157.91 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 832 Retail - Cyclical companies, Palemo Holdings Co ranks better than 51.56% 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. Palemo Holdings Co's
Operating Income
for the
six
months ended in Feb. 2026 was 円9 Mil. Palemo Holdings Co's Interest Expense for the
six
months ended in Feb. 2026 was 円-12 Mil.
Palemo Holdings Co's interest coverage for the quarter that ended in Feb. 2026 was 0.78.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Palemo Holdings Co's Interest Coverage or its related term are showing as below:
TSE:2778'
s Interest Coverage Range Over the Past 10 Years
Min: 7 Med: 30.67 Max: 180.23
Current: 8.06
TSE:2778's Interest Coverage is ranked better than 51.56% of 832
companies
in the Retail - Cyclical industry
Industry Median: 7.45
vs TSE:2778: 8.06
Palemo Holdings Co (TSE:2778) 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 .
Palemo Holdings Co Interest Coverage Related Terms
Palemo Holdings Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Palemo Holdings 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:2778 vs TJX, ROST, BURL: Interest Coverage Comparison
For the Apparel Retail subindustry, Palemo Holdings 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.
Palemo Holdings Co Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Palemo Holdings Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Palemo Holdings 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.
Palemo Holdings Co (TSE:2778) has a Interest Coverage of 0.78 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Palemo Holdings Co and its competitors. This is 97% below median its historical median of 30.67. Over the past decade, Palemo Holdings Co's Interest Coverage has ranged from 7.00 to 180.23. According to the industry distribution chart, Palemo Holdings Co ranks #403 out of 832 companies in the Retail - Cyclical industry, placing it in the top 48.4%.
Is Palemo Holdings Co's Interest Coverage too high?
Palemo Holdings Co's current Interest Coverage of 0.78 is 97% below median its 10-year median of 30.67. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 180.23. The Retail - Cyclical industry median Interest Coverage is 7.45. Palemo Holdings Co's value of 0.78 is 89.5% below this industry median. Based on the distribution chart, Palemo Holdings Co ranks #403 out of 832 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Palemo Holdings Co has a GF Score™ of 48/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Palemo Holdings Co's Interest Coverage compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Palemo Holdings Co ranks #403 out of 832 companies for Interest Coverage. This puts Palemo Holdings Co in the upper half of its industry. The industry median Interest Coverage is 7.45. Palemo Holdings Co's value of 0.78 is 89.5% below this benchmark. Historically, Palemo Holdings Co's own Interest Coverage has ranged from 7.00 to 180.23 over the past decade. While the company's 10-year median is 30.67 vs. the industry median of 7.45, Palemo Holdings Co has consistently been below 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 - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.45, based on 832 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. Palemo Holdings Co's current Interest Coverage of 0.78 is 89.5% below 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 Palemo Holdings Co and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palemo Holdings Co's current Interest Coverage is 0.78, which is 97% below median its own 10-year median of 30.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palemo Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Palemo Holdings Co (TSE:2778) is currently considered Modestly Undervalued. The stock's GF Value™ is 円157.91, compared to a current price of 円112.00 — trading 29.1% below its estimated fair value. The current Interest Coverage is 0.78, which is 97% below median its 10-year median of 30.67 and 89.5% below the Retail - Cyclical industry median of 7.45. Palemo Holdings Co's overall GF Score™ is 48/100 with 3 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 Palemo Holdings Co (TSE:2778), the current Interest Coverage is 0.78 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 Palemo Holdings Co (TSE:2778) Overvalued in 2026?
Based on GuruFocus' analysis, Palemo Holdings Co stock appears to be undervalued.
The current stock price of 円112.00 is trading 29.1% below its estimated GF Value™ of 円157.91.
GuruFocus considers Palemo Holdings Co to be Modestly Undervalued.
Key valuation signals for TSE:2778:
Interest Coverage: 0.78 (97% below median its 10-year median of 30.67)
GF Value™: 円157.91 vs. price of 円112.00 (29.1% below fair value)
Industry Position: 89.5% below the Retail - Cyclical median (#403 of 832)
No single metric tells the full story. See the TSE:2778 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palemo Holdings Co Ltd is a holding company based in Japan. The business of the company includes operating apparel stores for women, variety merchandise, and bag specialty store chain. The brands of the company include Palemo, Ludic park, Noemie, Hare no hi, Lilou de chouchou, Daisy Merry, and others.
48GF Score
Get the complete analysis for TSE:2778
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