Zenhoren Co (TSE:5845) Interest Coverage: 133.08 (As of Mar. 2026) — 289% Above Median


TSE:5845 Zenhoren Co Ltd TSE:5845
40 GF Score
Price 円1,001.00
GF Value 円886.29
Valuation Modestly Overvalued
! 4 Warning Signs
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What is Zenhoren Co Interest Coverage?

Zenhoren Co TSE:5845 +0.60% 40 Interest Coverage is 133.08 as of Mar. 2026, which is 289% above its 10-year median of 34.23. GuruFocus rates TSE:5845 with a GF Score™ of 40/100 and a GF Value™ of 円886.29 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 813 Business Services companies, Zenhoren Co ranks better than 81.43% 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. Zenhoren Co's Operating Income for the six months ended in Mar. 2026 was 円1,597 Mil. Zenhoren Co's Interest Expense for the six months ended in Mar. 2026 was 円-12 Mil. Zenhoren Co's interest coverage for the quarter that ended in Mar. 2026 was 133.08. 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. Zenhoren Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

TSE:5845' s Interest Coverage Range Over the Past 10 Years
Min: 15.04   Med: 34.23   Max: 138
Current: 138


TSE:5845's Interest Coverage is ranked better than
81.43% of 813 companies
in the Business Services industry
Industry Median: 12.98 vs TSE:5845: 138.00

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


Zenhoren Co  (TSE:5845) 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 .


Zenhoren Co Interest Coverage Related Terms


Zenhoren Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Zenhoren 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.

Zenhoren Co Interest Coverage Chart

Zenhoren Co Annual Data
Trend Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
15.04 19.43 34.23 79.66 138.00

Zenhoren Co Semi-Annual Data
Mar22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Interest Coverage Get a 7-Day Free Trial 18.27 68.56 93.93 143.36 133.08

TSE:5845 vs CTAS, CPRT, ULS: Interest Coverage Comparison

For the Specialty Business Services subindustry, Zenhoren 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.


Zenhoren Co Interest Coverage vs Business Services Industry

For the Business Services industry and Industrials sector, Zenhoren Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Zenhoren Co's Interest Coverage falls into.


TSE:5845
40GF Score
Zenhoren Co Ltd TSE:5845
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Zenhoren 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.

Zenhoren Co's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, Zenhoren Co's Interest Expense was 円-23 Mil. Its Operating Income was 円3,174 Mil. And its Long-Term Debt & Capital Lease Obligation was 円240 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*3174/-23
=138.00

Zenhoren Co's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the six months ended in Mar. 2026, Zenhoren Co's Interest Expense was 円-12 Mil. Its Operating Income was 円1,597 Mil. And its Long-Term Debt & Capital Lease Obligation was 円240 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*1597/-12
=133.08

* 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 133.08 mean?
Zenhoren Co (TSE:5845) has a Interest Coverage of 133.08 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Zenhoren Co and its competitors. This is 289% above median its historical median of 34.23. Over the past decade, Zenhoren Co's Interest Coverage has ranged from 15.04 to 138.00. According to the industry distribution chart, Zenhoren Co ranks #151 out of 813 companies in the Business Services industry, placing it in the top 18.6%.
Is Zenhoren Co's Interest Coverage too high?
Zenhoren Co's current Interest Coverage of 133.08 is 289% above median its 10-year median of 34.23. Over the past 10 years, this metric has ranged from a low of 15.04 to a high of 138.00. The Business Services industry median Interest Coverage is 12.98. Zenhoren Co's value of 133.08 is 925.3% above this industry median. Based on the distribution chart, Zenhoren Co ranks #151 out of 813 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Zenhoren Co has a GF Score™ of 40/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zenhoren Co's Interest Coverage compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Zenhoren Co ranks #151 out of 813 companies for Interest Coverage. This places Zenhoren Co in the top 19% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 12.98. Zenhoren Co's value of 133.08 is 925.3% above this benchmark. Historically, Zenhoren Co's own Interest Coverage has ranged from 15.04 to 138.00 over the past decade. While the company's 10-year median is 34.23 vs. the industry median of 12.98, Zenhoren Co 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 Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 813 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. Zenhoren Co's current Interest Coverage of 133.08 is 925.3% 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 Zenhoren Co and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zenhoren Co's current Interest Coverage is 133.08, which is 289% above median its own 10-year median of 34.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenhoren Co stock overvalued right now?
Based on GuruFocus' analysis, Zenhoren Co (TSE:5845) is currently considered Modestly Overvalued. The stock's GF Value™ is 円886.29, compared to a current price of 円1,001.00 — trading 12.9% above its estimated fair value. The current Interest Coverage is 133.08, which is 289% above median its 10-year median of 34.23 and 925.3% above the Business Services industry median of 12.98. Zenhoren Co's overall GF Score™ is 40/100 with 4 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 Zenhoren Co (TSE:5845), the current Interest Coverage is 133.08 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 Zenhoren Co (TSE:5845) Overvalued in 2026?

Based on GuruFocus' analysis, Zenhoren Co stock appears to be overvalued. The current stock price of 円1,001.00 is trading 12.9% above its estimated GF Value™ of 円886.29. GuruFocus considers Zenhoren Co to be Modestly Overvalued.

Key valuation signals for TSE:5845:

  • Interest Coverage: 133.08 (289% above median its 10-year median of 34.23)
  • GF Value™: 円886.29 vs. price of 円1,001.00 (12.9% above fair value)
  • GF Score™: 40/100 with 4 warning signs
  • Industry Position: 925.3% above the Business Services median (#151 of 813)

No single metric tells the full story. See the TSE:5845 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zenhoren Co Business Description

Address 905 Ameku, Okinawa Prefecture, Naha, JPN, 900-8608
Zenhoren Co Ltd is engaged in the rent liability guarantee business, providing rent guarantee services for residential properties with coverage of up to 24 months rent, including monthly rent, moving-out settlement fees, and tenant accident expense insurance. For business use, the Z-Business NEO service covers stores and offices with guarantees up to 24 months rent. The company also offers guarantees for parking lots and trunk rooms, the Z-value service for combined rent guarantee and fire insurance via smartphone, and Z-WEB/Z-WEB2.0 for centralized management by real estate companies. In addition, Zenhoren provides Z-College Support (tuition guarantee), enabling vocational schools and students to pay tuition fees in installments.
40GF Score

Get the complete analysis for TSE:5845

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

円1,001.00
Price
円886.29
GF Value