Happiness and D Co (TSE:3174) Interest Coverage: 0.18 (As of Feb. 2026) — 99% Below Median

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TSE:3174 Happiness and D Co Ltd TSE:3174
46 GF Score
Price 円406.00
GF Value 円555.25
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Happiness and D Co Interest Coverage?

Happiness and D Co TSE:3174 -1.22% 46 Interest Coverage is 0.18 as of Feb. 2026, which is 99% below its 10-year median of 12.23. GuruFocus rates TSE:3174 with a GF Score™ of 46/100 and a GF Value™ of 円555.25 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 825 Retail - Cyclical companies, Happiness and D Co ranks worse than 121212% 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. Happiness and D Co's Operating Income for the six months ended in Feb. 2026 was 円4 Mil. Happiness and D Co's Interest Expense for the six months ended in Feb. 2026 was 円-25 Mil. Happiness and D Co's interest coverage for the quarter that ended in Feb. 2026 was 0.18. The higher the ratio, the stronger the company's financial strength is.

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


TSE:3174's Interest Coverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 7.47
* Ranked among companies with meaningful Interest Coverage only.

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


Happiness and D Co  (TSE:3174) 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 .


Happiness and D Co Interest Coverage Related Terms


Happiness and D Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Happiness and D 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.

Happiness and D Co Interest Coverage Chart

Happiness and D Co Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 7.58 0.00 0.00 0.00

Happiness and D Co Semi-Annual Data
Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
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 2.57 0.00 0.00 0.00 0.18

TSE:3174 vs CASY, WSM, DKS: Interest Coverage Comparison

For the Specialty Retail subindustry, Happiness and D 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.


Happiness and D Co Interest Coverage vs Retail - Cyclical Industry

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

* The bar in red indicates where Happiness and D Co's Interest Coverage falls into.


TSE:3174
46GF Score
Happiness and D Co Ltd TSE:3174
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Happiness and D 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.

Happiness and D Co's Interest Coverage for the fiscal year that ended in Aug. 2025 is calculated as

Here, for the fiscal year that ended in Aug. 2025, Happiness and D Co's Interest Expense was 円-36 Mil. Its Operating Income was 円-404 Mil. And its Long-Term Debt & Capital Lease Obligation was 円813 Mil.

Happiness and D Co did not have earnings to cover the interest expense.

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

Here, for the six months ended in Feb. 2026, Happiness and D Co's Interest Expense was 円-25 Mil. Its Operating Income was 円4 Mil. And its Long-Term Debt & Capital Lease Obligation was 円798 Mil.

Interest Coverage=-1* Operating Income (Q: Feb. 2026 )/Interest Expense (Q: Feb. 2026 )
=-1*4.459/-24.526
=0.18

* 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 0.18 mean?
Happiness and D Co (TSE:3174) has a Interest Coverage of 0.18 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Happiness and D Co and its competitors. This is 99% below median its historical median of 12.23. According to the industry distribution chart, Happiness and D Co ranks #999999 out of 825 companies in the Retail - Cyclical industry.
Is Happiness and D Co's Interest Coverage too high?
Happiness and D Co's current Interest Coverage of 0.18 is 99% below median its 10-year median of 12.23. The Retail - Cyclical industry median Interest Coverage is 7.47. Happiness and D Co's value of 0.18 is 97.6% below this industry median. Based on the distribution chart, Happiness and D Co ranks #999999 out of 825 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Happiness and D Co has a GF Score™ of 46/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Happiness and D Co's Interest Coverage compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Happiness and D Co ranks #999999 out of 825 companies for Interest Coverage. This places Happiness and D Co in the lower half of its industry. The industry median Interest Coverage is 7.47. Happiness and D Co's value of 0.18 is 97.6% below this benchmark. While the company's 10-year median is 12.23 vs. the industry median of 7.47, Happiness and D 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 7.47, based on 825 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. Happiness and D Co's current Interest Coverage of 0.18 is 97.6% 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 Happiness and D Co and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Happiness and D Co's current Interest Coverage is 0.18, which is 99% below median its own 10-year median of 12.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Happiness and D Co stock overvalued right now?
Based on GuruFocus' analysis, Happiness and D Co (TSE:3174) is currently considered Modestly Undervalued. The stock's GF Value™ is 円555.25, compared to a current price of 円406.00 — trading 26.9% below its estimated fair value. The current Interest Coverage is 0.18, which is 99% below median its 10-year median of 12.23 and 97.6% below the Retail - Cyclical industry median of 7.47. Happiness and D Co's overall GF Score™ is 46/100 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 Happiness and D Co (TSE:3174), the current Interest Coverage is 0.18 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 Happiness and D Co (TSE:3174) Overvalued in 2026?

Based on GuruFocus' analysis, Happiness and D Co stock appears to be undervalued. The current stock price of 円406.00 is trading 26.9% below its estimated GF Value™ of 円555.25. GuruFocus considers Happiness and D Co to be Modestly Undervalued.

Key valuation signals for TSE:3174:

  • Interest Coverage: 0.18 (99% below median its 10-year median of 12.23)
  • GF Value™: 円555.25 vs. price of 円406.00 (26.9% below fair value)
  • GF Score™: 46/100 with 3 warning signs
  • Industry Position: 97.6% below the Retail - Cyclical median (#999999 of 825)

No single metric tells the full story. See the TSE:3174 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Happiness and D Co Business Description

Address Toka Building. 4th Floor, 1-16-1 Ginza, Chuo-ku, Tokyo, JPN, 104-0061
Happiness and D Co Ltd manages branded gift stores in Japan. It is engaged in sales of imported brand products, including jewelry, such as imported brand jewelry and diamond jewelry consisting of rings, necklaces, earrings, and bracelets; as well as watches, handbags, and accessories. The company has stores located in Hokkaido, Tohoku, Kanto, Chubu and Chugoku among other locations.
46GF Score

Get the complete analysis for TSE:3174

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

円406.00
Price
円555.25
GF Value