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CLIPTSE:4705 +0.26%56 Interest Coverage is 9.27 as of Mar. 2026, which is 84% below its 10-year median of 56.26. GuruFocus rates TSE:4705 with a GF Score™ of 56/100 and a GF Value™ of 円824.61 (Fairly Valued). The stock has 5 warning signs investors should review. Among 194 Education companies, CLIP ranks worse than 515463.4% 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. CLIP's
Operating Income
for the
six
months ended in Mar. 2026 was 円13 Mil. CLIP's Interest Expense for the
six
months ended in Mar. 2026 was 円-1 Mil.
CLIP's interest coverage for the quarter that ended in Mar. 2026 was 9.27.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for CLIP's Interest Coverage or its related term are showing as below:
TSE:4705's Interest Coverage is not ranked *
in the Education industry.
Industry Median: 13.39 * Ranked among companies with meaningful Interest Coverage only.
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 .
CLIP Interest Coverage Related Terms
CLIP Interest Coverage Historical Data
* Premium members only.
The historical data trend for CLIP'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:4705 vs EDU, TAL, LAUR: Interest Coverage Comparison
For the Education & Training Services subindustry, CLIP'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.
CLIP Interest Coverage vs Education Industry
For the Education industry and Consumer Defensive sector, CLIP's Interest Coverage distribution charts can be found below:
* The bar in red indicates where CLIP'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.
CLIP (TSE:4705) has a Interest Coverage of 9.27 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on CLIP and its competitors. This is 84% below median its historical median of 56.26. According to the industry distribution chart, CLIP ranks #999999 out of 194 companies in the Education industry.
Is CLIP's Interest Coverage too high?
CLIP's current Interest Coverage of 9.27 is 84% below median its 10-year median of 56.26. The Education industry median Interest Coverage is 13.39. CLIP's value of 9.27 is 30.8% below this industry median. Based on the distribution chart, CLIP ranks #999999 out of 194 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, CLIP has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does CLIP's Interest Coverage compare to EDU and TAL?
According to the Education industry distribution chart, CLIP ranks #999999 out of 194 companies for Interest Coverage. This places CLIP in the lower half of its industry. The industry median Interest Coverage is 13.39. CLIP's value of 9.27 is 30.8% below this benchmark. While the company's 10-year median is 56.26 vs. the industry median of 13.39, CLIP 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 an Education company?
The median Interest Coverage among Education companies is 13.39, based on 194 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. CLIP's current Interest Coverage of 9.27 is 30.8% 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 CLIP and its competitors. For the Education industry, the median Interest Coverage is 13.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CLIP's current Interest Coverage is 9.27, which is 84% below median its own 10-year median of 56.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CLIP stock overvalued right now?
Based on GuruFocus' analysis, CLIP (TSE:4705) is currently considered Fairly Valued. The stock's GF Value™ is 円824.61, compared to a current price of 円780.00 — trading 5.4% below its estimated fair value. The current Interest Coverage is 9.27, which is 84% below median its 10-year median of 56.26 and 30.8% below the Education industry median of 13.39. CLIP's overall GF Score™ is 56/100 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 CLIP (TSE:4705), the current Interest Coverage is 9.27 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 CLIP (TSE:4705) Overvalued in 2026?
Based on GuruFocus' analysis, CLIP stock appears to be undervalued.
The current stock price of 円780.00 is trading 5.4% below its estimated GF Value™ of 円824.61.
GuruFocus considers CLIP to be Fairly Valued.
Key valuation signals for TSE:4705:
Interest Coverage: 9.27 (84% below median its 10-year median of 56.26)
GF Value™: 円824.61 vs. price of 円780.00 (5.4% below fair value)
Industry Position: 30.8% below the Education median (#999999 of 194)
No single metric tells the full story. See the TSE:4705 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CLIP Corp is a Japan-based company that engages in the operation of learning cram schools for elementary and junior high school students. It is also engaged in the operation of soccer schools, which provide services to children from babies to early elementary school students.
56GF Score
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