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. Nippon Hotel & Residential Investment's
Operating Income
for the
six
months ended in Nov. 2025 was 円997 Mil. Nippon Hotel & Residential Investment's Interest Expense for the
six
months ended in Nov. 2025 was 円-148 Mil.
Nippon Hotel & Residential Investment's interest coverage for the quarter that ended in Nov. 2025 was 6.72.
The higher the ratio, the stronger the company's financial strength is.
Nippon Hotel & Residential Investment (TSE:3472) 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 .
Nippon Hotel & Residential Investment Interest Coverage Related Terms
Nippon Hotel & Residential Investment Interest Coverage Historical Data
* 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.
Nippon Hotel & Residential Investment Interest Coverage Chart
TSE:3472 vs HST, RHP, APLE: Interest Coverage Comparison
For the REIT - Hotel & Motel subindustry, Nippon Hotel & Residential Investment'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.
Nippon Hotel & Residential Investment Interest Coverage vs REITs Industry
Nippon Hotel & Residential Investment 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:
* 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.
Nippon Hotel & Residential Investment (TSE:3472) has a Interest Coverage of 6.72 as of Nov. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Hotel & Residential Investment and its competitors. This is 39% below median its historical median of 10.97. Over the past decade, Nippon Hotel & Residential Investment's Interest Coverage has ranged from 6.44 to 12.23. According to the industry distribution chart, Nippon Hotel & Residential Investment ranks #214 out of 697 companies in the REITs industry, placing it in the top 30.7%.
Is Nippon Hotel & Residential Investment's Interest Coverage too high?
Nippon Hotel & Residential Investment's current Interest Coverage of 6.72 is 39% below median its 10-year median of 10.97. Over the past 10 years, this metric has ranged from a low of 6.44 to a high of 12.23. The REITs industry median Interest Coverage is 3.11. Nippon Hotel & Residential Investment's value of 6.72 is 116.1% above this industry median. Based on the distribution chart, Nippon Hotel & Residential Investment ranks #214 out of 697 companies in the REITs industry, which is above the industry midpoint. Overall, Nippon Hotel & Residential Investment has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Hotel & Residential Investment's Interest Coverage compare to HST and RHP?
According to the REITs industry distribution chart, Nippon Hotel & Residential Investment ranks #214 out of 697 companies for Interest Coverage. This puts Nippon Hotel & Residential Investment in the upper half of its industry. The industry median Interest Coverage is 3.11. Nippon Hotel & Residential Investment's value of 6.72 is 116.1% above this benchmark. Historically, Nippon Hotel & Residential Investment's own Interest Coverage has ranged from 6.44 to 12.23 over the past decade. While the company's 10-year median is 10.97 vs. the industry median of 3.11, Nippon Hotel & Residential Investment 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 REITs company?
The median Interest Coverage among REITs companies is 3.11, based on 697 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. Nippon Hotel & Residential Investment's current Interest Coverage of 6.72 is 116.1% 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 Nippon Hotel & Residential Investment and its competitors. For the REITs industry, the median Interest Coverage is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Hotel & Residential Investment's current Interest Coverage is 6.72, which is 39% below median its own 10-year median of 10.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Hotel & Residential Investment stock overvalued right now?
Based on GuruFocus' analysis, Nippon Hotel & Residential Investment (TSE:3472) is currently considered Modestly Undervalued. The stock's GF Value™ is 円74,148.30, compared to a current price of 円66,200.00 — trading 10.7% below its estimated fair value. The current Interest Coverage is 6.72, which is 39% below median its 10-year median of 10.97 and 116.1% above the REITs industry median of 3.11. Nippon Hotel & Residential Investment's overall GF Score™ is 52/100 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 Nippon Hotel & Residential Investment (TSE:3472), the current Interest Coverage is 6.72 as of Nov. 2025. 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 Nippon Hotel & Residential Investment (TSE:3472) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Hotel & Residential Investment stock appears to be undervalued.
The current stock price of 円66,200.00 is trading 10.7% below its estimated GF Value™ of 円74,148.30.
GuruFocus considers Nippon Hotel & Residential Investment to be Modestly Undervalued.
Key valuation signals for TSE:3472:
Interest Coverage: 6.72 (39% below median its 10-year median of 10.97)
GF Value™: 円74,148.30 vs. price of 円66,200.00 (10.7% below fair value)
Industry Position: 116.1% above the REITs median (#214 of 697)
No single metric tells the full story. See the TSE:3472 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Hotel & Residential Investment Business Description
Nippon Hotel & Residential Investment Corp is a real estate investment trust. The firm invests in onsen and spa-related facilities, and Accomodation. The company principally invests in hot spring-related industries, such as hotels, hot spring facilities and theme parks.
52GF Score
Get the complete analysis for TSE:3472
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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