Hatsuho Shouji Co (TSE:7425) Interest Coverage: 229.46 (As of Dec. 2025) — 50% Above Median


TSE:7425 Hatsuho Shouji Co Ltd TSE:7425
79 GF Score
Price 円1,242.00
GF Value 円872.77
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Hatsuho Shouji Co Interest Coverage?

Hatsuho Shouji Co TSE:7425 +1.14% 79 Interest Coverage is 229.46 as of Dec. 2025, which is 50% above its 10-year median of 153.00. GuruFocus rates TSE:7425 with a GF Score™ of 79/100 and a GF Value™ of 円872.77 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 457 Steel companies, Hatsuho Shouji Co ranks better than 92.12% 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. Hatsuho Shouji Co's Operating Income for the six months ended in Dec. 2025 was 円631 Mil. Hatsuho Shouji Co's Interest Expense for the six months ended in Dec. 2025 was 円-3 Mil. Hatsuho Shouji Co's interest coverage for the quarter that ended in Dec. 2025 was 229.46. 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. Hatsuho Shouji Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

TSE:7425' s Interest Coverage Range Over the Past 10 Years
Min: 80.89   Med: 153   Max: 415.48
Current: 216.39


TSE:7425's Interest Coverage is ranked better than
92.12% of 457 companies
in the Steel industry
Industry Median: 4.41 vs TSE:7425: 216.39

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


Hatsuho Shouji Co  (TSE:7425) 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 .


Hatsuho Shouji Co Interest Coverage Related Terms


Hatsuho Shouji Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Hatsuho Shouji 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.

Hatsuho Shouji Co Interest Coverage Chart

Hatsuho Shouji Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 170.06 379.23 415.48 272.17 216.39

Hatsuho Shouji Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 392.58 263.10 280.31 203.88 229.46

TSE:7425 vs NUE, STLD, RS: Interest Coverage Comparison

For the Steel subindustry, Hatsuho Shouji 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.


Hatsuho Shouji Co Interest Coverage vs Steel Industry

For the Steel industry and Basic Materials sector, Hatsuho Shouji Co's Interest Coverage distribution charts can be found below:

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


TSE:7425
79GF Score
Hatsuho Shouji Co Ltd TSE:7425
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hatsuho Shouji 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.

Hatsuho Shouji Co's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Hatsuho Shouji Co's Interest Expense was 円-6 Mil. Its Operating Income was 円1,217 Mil. And its Long-Term Debt & Capital Lease Obligation was 円197 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*1216.535/-5.622
=216.39

Hatsuho Shouji Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Hatsuho Shouji Co's Interest Expense was 円-3 Mil. Its Operating Income was 円631 Mil. And its Long-Term Debt & Capital Lease Obligation was 円197 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*630.786/-2.749
=229.46

* 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 229.46 mean?
Hatsuho Shouji Co (TSE:7425) has a Interest Coverage of 229.46 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hatsuho Shouji Co and its competitors. This is 50% above median its historical median of 153.00. Over the past decade, Hatsuho Shouji Co's Interest Coverage has ranged from 80.89 to 415.48. According to the industry distribution chart, Hatsuho Shouji Co ranks #36 out of 457 companies in the Steel industry, placing it in the top 7.9%.
Is Hatsuho Shouji Co's Interest Coverage too high?
Hatsuho Shouji Co's current Interest Coverage of 229.46 is 50% above median its 10-year median of 153.00. Over the past 10 years, this metric has ranged from a low of 80.89 to a high of 415.48. The Steel industry median Interest Coverage is 4.41. Hatsuho Shouji Co's value of 229.46 is 5103.2% above this industry median. Based on the distribution chart, Hatsuho Shouji Co ranks #36 out of 457 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Hatsuho Shouji Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hatsuho Shouji Co's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Hatsuho Shouji Co ranks #36 out of 457 companies for Interest Coverage. This places Hatsuho Shouji Co in the top 8% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 4.41. Hatsuho Shouji Co's value of 229.46 is 5103.2% above this benchmark. Historically, Hatsuho Shouji Co's own Interest Coverage has ranged from 80.89 to 415.48 over the past decade. While the company's 10-year median is 153.00 vs. the industry median of 4.41, Hatsuho Shouji 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 Steel company?
The median Interest Coverage among Steel companies is 4.41, based on 457 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. Hatsuho Shouji Co's current Interest Coverage of 229.46 is 5103.2% 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 Hatsuho Shouji Co and its competitors. For the Steel industry, the median Interest Coverage is 4.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hatsuho Shouji Co's current Interest Coverage is 229.46, which is 50% above median its own 10-year median of 153.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hatsuho Shouji Co stock overvalued right now?
Based on GuruFocus' analysis, Hatsuho Shouji Co (TSE:7425) is currently considered Significantly Overvalued. The stock's GF Value™ is 円872.77, compared to a current price of 円1,242.00 — trading 42.3% above its estimated fair value. The current Interest Coverage is 229.46, which is 50% above median its 10-year median of 153.00 and 5103.2% above the Steel industry median of 4.41. Hatsuho Shouji Co's overall GF Score™ is 79/100 with 6 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 Hatsuho Shouji Co (TSE:7425), the current Interest Coverage is 229.46 as of Dec. 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 Hatsuho Shouji Co (TSE:7425) Overvalued in 2026?

Based on GuruFocus' analysis, Hatsuho Shouji Co stock appears to be overvalued. The current stock price of 円1,242.00 is trading 42.3% above its estimated GF Value™ of 円872.77. GuruFocus considers Hatsuho Shouji Co to be Significantly Overvalued.

Key valuation signals for TSE:7425:

  • Interest Coverage: 229.46 (50% above median its 10-year median of 153.00)
  • GF Value™: 円872.77 vs. price of 円1,242.00 (42.3% above fair value)
  • GF Score™: 79/100 with 6 warning signs
  • Industry Position: 5103.2% above the Steel median (#36 of 457)

No single metric tells the full story. See the TSE:7425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hatsuho Shouji Co Business Description

Address 2-14-21 Nishiki Naka-ku, Nagoya-city, Aichi, JPN, 460-0003
Hatsuho Shouji Co Ltd is a Japan-based company engages in the sale of secondary steel products and non-ferrous metals. Its products include light-weight steel frames, wire mesh for concrete, sheet rock, car ports, and other construction materials.
79GF Score

Get the complete analysis for TSE:7425

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

円1,242.00
Price
円872.77
GF Value