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KFCTSE:3420 -2.28%65 Interest Coverage is 81.19 as of Mar. 2026, which is 57% below its 10-year median of 187.54. GuruFocus rates TSE:3420 with a GF Score™ of 65/100 and a GF Value™ of 円1,511.93 (Fairly Valued). The stock has 5 warning signs investors should review. Among 424 Conglomerates companies, KFC ranks better than 87.03% 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. KFC's
Operating Income
for the
six
months ended in Mar. 2026 was 円814 Mil. KFC's Interest Expense for the
six
months ended in Mar. 2026 was 円-10 Mil.
KFC's interest coverage for the quarter that ended in Mar. 2026 was 81.19.
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. KFC Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for KFC's Interest Coverage or its related term are showing as below:
TSE:3420'
s Interest Coverage Range Over the Past 10 Years
Min: 61.56 Med: 187.54 Max: 487.3
Current: 61.56
TSE:3420's Interest Coverage is ranked better than 87.03% of 424
companies
in the Conglomerates industry
Industry Median: 5.27
vs TSE:3420: 61.56
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 .
KFC Interest Coverage Related Terms
KFC Interest Coverage Historical Data
* Premium members only.
The historical data trend for KFC'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:3420 vs HON, MMM: Interest Coverage Comparison
For the Conglomerates subindustry, KFC'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.
KFC Interest Coverage vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, KFC's Interest Coverage distribution charts can be found below:
* The bar in red indicates where KFC'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.
KFC (TSE:3420) has a Interest Coverage of 81.19 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on KFC and its competitors. This is 57% below median its historical median of 187.54. Over the past decade, KFC's Interest Coverage has ranged from 61.56 to 487.30. According to the industry distribution chart, KFC ranks #55 out of 424 companies in the Conglomerates industry, placing it in the top 13%.
Is KFC's Interest Coverage too high?
KFC's current Interest Coverage of 81.19 is 57% below median its 10-year median of 187.54. Over the past 10 years, this metric has ranged from a low of 61.56 to a high of 487.30. The Conglomerates industry median Interest Coverage is 5.27. KFC's value of 81.19 is 1440.6% above this industry median. Based on the distribution chart, KFC ranks #55 out of 424 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, KFC has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does KFC's Interest Coverage compare to HON and MMM?
According to the Conglomerates industry distribution chart, KFC ranks #55 out of 424 companies for Interest Coverage. This places KFC in the top 13% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 5.27. KFC's value of 81.19 is 1440.6% above this benchmark. Historically, KFC's own Interest Coverage has ranged from 61.56 to 487.30 over the past decade. While the company's 10-year median is 187.54 vs. the industry median of 5.27, KFC 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 Conglomerates company?
The median Interest Coverage among Conglomerates companies is 5.27, based on 424 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. KFC's current Interest Coverage of 81.19 is 1440.6% 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 KFC and its competitors. For the Conglomerates industry, the median Interest Coverage is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KFC's current Interest Coverage is 81.19, which is 57% below median its own 10-year median of 187.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KFC stock overvalued right now?
Based on GuruFocus' analysis, KFC (TSE:3420) is currently considered Fairly Valued. The stock's GF Value™ is 円1,511.93, compared to a current price of 円1,585.00 — trading 4.8% above its estimated fair value. The current Interest Coverage is 81.19, which is 57% below median its 10-year median of 187.54 and 1440.6% above the Conglomerates industry median of 5.27. KFC's overall GF Score™ is 65/100 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 KFC (TSE:3420), the current Interest Coverage is 81.19 as of Mar. 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 KFC (TSE:3420) Overvalued in 2026?
Based on GuruFocus' analysis, KFC stock appears to be overvalued.
The current stock price of 円1,585.00 is trading 4.8% above its estimated GF Value™ of 円1,511.93.
GuruFocus considers KFC to be Fairly Valued.
Key valuation signals for TSE:3420:
Interest Coverage: 81.19 (57% below median its 10-year median of 187.54)
GF Value™: 円1,511.93 vs. price of 円1,585.00 (4.8% above fair value)
Industry Position: 1440.6% above the Conglomerates median (#55 of 424)
No single metric tells the full story. See the TSE:3420 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KFC Ltd manufactures and sells construction materials. The company's business is divided into three divisions namely Fastener business division which includes the production and sales of steel materials and various hardware products, design and construction of earthquake-resistant construction works of constructions, and others., The civil engineering material business division comprises of manufacture and sales of tunnel support materials such as lock bolts, sales of tunnel waterproof sheets and accessories welding machines and construction machines, and others, and the Construction business division consists of designing and construction of environmental construction such as tunnel interior and fireproof construction and sound insulation wall installation work, and others.
65GF Score
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