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Karula CoTSE:2789 +0.21%51 Interest Coverage is 2.98 as of Feb. 2026, which is 71% below its 10-year median of 10.19. GuruFocus rates TSE:2789 with a GF Score™ of 51/100 and a GF Value™ of 円525.01 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 262 Restaurants companies, Karula Co ranks better than 63.74% 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. Karula Co's
Operating Income
for the
six
months ended in Feb. 2026 was 円43 Mil. Karula Co's Interest Expense for the
six
months ended in Feb. 2026 was 円-14 Mil.
Karula Co's interest coverage for the quarter that ended in Feb. 2026 was 2.98.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Karula Co's Interest Coverage or its related term are showing as below:
TSE:2789'
s Interest Coverage Range Over the Past 10 Years
Min: 4.44 Med: 10.19 Max: 11.83
Current: 10.8
TSE:2789's Interest Coverage is ranked better than 63.74% of 262
companies
in the Restaurants industry
Industry Median: 6.65
vs TSE:2789: 10.80
Karula Co (TSE:2789) 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 .
Karula Co Interest Coverage Related Terms
Karula Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Karula 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:2789 vs MCD, SBUX, YUM: Interest Coverage Comparison
For the Restaurants subindustry, Karula 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.
Karula Co Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Karula Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Karula 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.
Karula Co (TSE:2789) has a Interest Coverage of 2.98 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Karula Co and its competitors. This is 71% below median its historical median of 10.19. Over the past decade, Karula Co's Interest Coverage has ranged from 4.44 to 11.83. According to the industry distribution chart, Karula Co ranks #95 out of 262 companies in the Restaurants industry, placing it in the top 36.3%.
Is Karula Co's Interest Coverage too high?
Karula Co's current Interest Coverage of 2.98 is 71% below median its 10-year median of 10.19. Over the past 10 years, this metric has ranged from a low of 4.44 to a high of 11.83. The Restaurants industry median Interest Coverage is 6.65. Karula Co's value of 2.98 is 55.2% below this industry median. Based on the distribution chart, Karula Co ranks #95 out of 262 companies in the Restaurants industry, which is above the industry midpoint. Overall, Karula Co has a GF Score™ of 51/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Karula Co's Interest Coverage compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Karula Co ranks #95 out of 262 companies for Interest Coverage. This puts Karula Co in the upper half of its industry. The industry median Interest Coverage is 6.65. Karula Co's value of 2.98 is 55.2% below this benchmark. Historically, Karula Co's own Interest Coverage has ranged from 4.44 to 11.83 over the past decade. While the company's 10-year median is 10.19 vs. the industry median of 6.65, Karula 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 Restaurants company?
The median Interest Coverage among Restaurants companies is 6.65, based on 262 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. Karula Co's current Interest Coverage of 2.98 is 55.2% 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 Karula Co and its competitors. For the Restaurants industry, the median Interest Coverage is 6.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karula Co's current Interest Coverage is 2.98, which is 71% below median its own 10-year median of 10.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karula Co stock overvalued right now?
Based on GuruFocus' analysis, Karula Co (TSE:2789) is currently considered Modestly Undervalued. The stock's GF Value™ is 円525.01, compared to a current price of 円469.00 — trading 10.7% below its estimated fair value. The current Interest Coverage is 2.98, which is 71% below median its 10-year median of 10.19 and 55.2% below the Restaurants industry median of 6.65. Karula Co's overall GF Score™ is 51/100 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 Karula Co (TSE:2789), the current Interest Coverage is 2.98 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 Karula Co (TSE:2789) Overvalued in 2026?
Based on GuruFocus' analysis, Karula Co stock appears to be undervalued.
The current stock price of 円469.00 is trading 10.7% below its estimated GF Value™ of 円525.01.
GuruFocus considers Karula Co to be Modestly Undervalued.
Key valuation signals for TSE:2789:
Interest Coverage: 2.98 (71% below median its 10-year median of 10.19)
GF Value™: 円525.01 vs. price of 円469.00 (10.7% below fair value)
Industry Position: 55.2% below the Restaurants median (#95 of 262)
No single metric tells the full story. See the TSE:2789 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Karula Co Ltd operates a restaurant chain in Japan. The brands under the group include MARUMATSU 99 shops, kotobuki 3 shop, kabe masamune 3 shops, and soba recycle mar matsu 6 store.
51GF Score
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