Top Culture CoTSE:7640 -4.19%49 Interest Coverage is 2.13 as of Apr. 2026, which is 40% below its 10-year median of 3.54. GuruFocus rates TSE:7640 with a GF Score™ of 49/100 and a GF Value™ of 円129.59 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 824 Retail - Cyclical companies, Top Culture Co ranks worse than 121359.1% 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. Top Culture Co's
Operating Income
for the
six
months ended in Apr. 2026 was 円143 Mil. Top Culture Co's Interest Expense for the
six
months ended in Apr. 2026 was 円-67 Mil.
Top Culture Co's interest coverage for the quarter that ended in Apr. 2026 was 2.13.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Top Culture Co's Interest Coverage or its related term are showing as below:
TSE:7640's Interest Coverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 7.94 * Ranked among companies with meaningful Interest Coverage only.
Top Culture Co (TSE:7640) 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 .
Top Culture Co Interest Coverage Related Terms
Top Culture Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Top Culture 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.
TSE:7640 vs CASY, WSM, DKS: Interest Coverage Comparison
For the Specialty Retail subindustry, Top Culture 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.
Top Culture Co Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Top Culture Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Top Culture Co'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.
Top Culture Co (TSE:7640) has a Interest Coverage of 2.13 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Top Culture Co and its competitors. This is 40% below median its historical median of 3.54. According to the industry distribution chart, Top Culture Co ranks #999999 out of 824 companies in the Retail - Cyclical industry.
Is Top Culture Co's Interest Coverage too high?
Top Culture Co's current Interest Coverage of 2.13 is 40% below median its 10-year median of 3.54. The Retail - Cyclical industry median Interest Coverage is 7.94. Top Culture Co's value of 2.13 is 73.2% below this industry median. Based on the distribution chart, Top Culture Co ranks #999999 out of 824 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Top Culture Co has a GF Score™ of 49/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Top Culture Co's Interest Coverage compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Top Culture Co ranks #999999 out of 824 companies for Interest Coverage. This places Top Culture Co in the lower half of its industry. The industry median Interest Coverage is 7.94. Top Culture Co's value of 2.13 is 73.2% below this benchmark. While the company's 10-year median is 3.54 vs. the industry median of 7.94, Top Culture Co 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 a Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.94, based on 824 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. Top Culture Co's current Interest Coverage of 2.13 is 73.2% 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 Top Culture Co and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Top Culture Co's current Interest Coverage is 2.13, which is 40% below median its own 10-year median of 3.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Top Culture Co stock overvalued right now?
Based on GuruFocus' analysis, Top Culture Co (TSE:7640) is currently considered Modestly Overvalued. The stock's GF Value™ is 円129.59, compared to a current price of 円160.00 — trading 23.5% above its estimated fair value. The current Interest Coverage is 2.13, which is 40% below median its 10-year median of 3.54 and 73.2% below the Retail - Cyclical industry median of 7.94. Top Culture Co's overall GF Score™ is 49/100 with 3 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 Top Culture Co (TSE:7640), the current Interest Coverage is 2.13 as of Apr. 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 Top Culture Co (TSE:7640) Overvalued in 2026?
Based on GuruFocus' analysis, Top Culture Co stock appears to be overvalued.
The current stock price of 円160.00 is trading 23.5% above its estimated GF Value™ of 円129.59.
GuruFocus considers Top Culture Co to be Modestly Overvalued.
Key valuation signals for TSE:7640:
Interest Coverage: 2.13 (40% below median its 10-year median of 3.54)
GF Value™: 円129.59 vs. price of 円160.00 (23.5% above fair value)
Industry Position: 73.2% below the Retail - Cyclical median (#999999 of 824)
No single metric tells the full story. See the TSE:7640 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Top Culture Co Ltd is a speciality retail company. The firm mainly sells books, stationery, music and video software. The company owns and operates approximately 74 retail stores in Japan. In addition, the company is engaged in the management of sports facilities and maintenance of store facilities. Its reportable segments are: Tsutaya Bookstore Business, Games and trading cards business, Sports-related business, Visiting nurse business, and Catering business.
49GF Score
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