Rhythm Co (TSE:7769) Interest Coverage: 13.21 (As of Mar. 2026) — 28% Below Median


TSE:7769 Rhythm Co Ltd TSE:7769
75 GF Score
Price 円3,810.00
GF Value 円3,879.16
Valuation Fairly Valued
! 6 Warning Signs
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What is Rhythm Co Interest Coverage?

Rhythm Co TSE:7769 -0.78% 75 Interest Coverage is 13.21 as of Mar. 2026, which is 28% below its 10-year median of 18.25. GuruFocus rates TSE:7769 with a GF Score™ of 75/100 and a GF Value™ of 円3,879.16 (Fairly Valued). The stock has 6 warning signs investors should review. Among 822 Retail - Cyclical companies, Rhythm Co ranks better than 69.95% 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. Rhythm Co's Operating Income for the six months ended in Mar. 2026 was 円568 Mil. Rhythm Co's Interest Expense for the six months ended in Mar. 2026 was 円-43 Mil. Rhythm Co's interest coverage for the quarter that ended in Mar. 2026 was 13.21. The higher the ratio, the stronger the company's financial strength is.

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

TSE:7769' s Interest Coverage Range Over the Past 10 Years
Min: 8.59   Med: 18.25   Max: 36.96
Current: 19.12


TSE:7769's Interest Coverage is ranked better than
69.95% of 822 companies
in the Retail - Cyclical industry
Industry Median: 7.775 vs TSE:7769: 19.12

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


Rhythm Co  (TSE:7769) 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 .


Rhythm Co Interest Coverage Related Terms


Rhythm Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Rhythm 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.

Rhythm Co Interest Coverage Chart

Rhythm Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.77 36.96 18.25 14.10 19.12

Rhythm Co Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
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 19.45 14.50 13.82 25.48 13.21

TSE:7769 vs TPR: Interest Coverage Comparison

For the Luxury Goods subindustry, Rhythm 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.


Rhythm Co Interest Coverage vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Rhythm Co's Interest Coverage distribution charts can be found below:

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


TSE:7769
75GF Score
Rhythm Co Ltd TSE:7769
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Rhythm 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.

Rhythm 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, Rhythm Co's Interest Expense was 円-83 Mil. Its Operating Income was 円1,587 Mil. And its Long-Term Debt & Capital Lease Obligation was 円6,746 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*1587/-83
=19.12

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

Here, for the six months ended in Mar. 2026, Rhythm Co's Interest Expense was 円-43 Mil. Its Operating Income was 円568 Mil. And its Long-Term Debt & Capital Lease Obligation was 円6,746 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*568/-43
=13.21

* 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 13.21 mean?
Rhythm Co (TSE:7769) has a Interest Coverage of 13.21 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Rhythm Co and its competitors. This is 28% below median its historical median of 18.25. Over the past decade, Rhythm Co's Interest Coverage has ranged from 8.59 to 36.96. According to the industry distribution chart, Rhythm Co ranks #247 out of 822 companies in the Retail - Cyclical industry, placing it in the top 30%.
Is Rhythm Co's Interest Coverage too high?
Rhythm Co's current Interest Coverage of 13.21 is 28% below median its 10-year median of 18.25. Over the past 10 years, this metric has ranged from a low of 8.59 to a high of 36.96. The Retail - Cyclical industry median Interest Coverage is 7.78. Rhythm Co's value of 13.21 is 69.9% above this industry median. Based on the distribution chart, Rhythm Co ranks #247 out of 822 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Rhythm Co has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rhythm Co's Interest Coverage compare to TPR?
According to the Retail - Cyclical industry distribution chart, Rhythm Co ranks #247 out of 822 companies for Interest Coverage. This puts Rhythm Co in the upper half of its industry. The industry median Interest Coverage is 7.78. Rhythm Co's value of 13.21 is 69.9% above this benchmark. Historically, Rhythm Co's own Interest Coverage has ranged from 8.59 to 36.96 over the past decade. While the company's 10-year median is 18.25 vs. the industry median of 7.78, Rhythm 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 Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.78, based on 822 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. Rhythm Co's current Interest Coverage of 13.21 is 69.9% 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 Rhythm Co and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rhythm Co's current Interest Coverage is 13.21, which is 28% below median its own 10-year median of 18.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rhythm Co stock overvalued right now?
Based on GuruFocus' analysis, Rhythm Co (TSE:7769) is currently considered Fairly Valued. The stock's GF Value™ is 円3,879.16, compared to a current price of 円3,810.00 — trading 1.8% below its estimated fair value. The current Interest Coverage is 13.21, which is 28% below median its 10-year median of 18.25 and 69.9% above the Retail - Cyclical industry median of 7.78. Rhythm Co's overall GF Score™ is 75/100 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 Rhythm Co (TSE:7769), the current Interest Coverage is 13.21 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 Rhythm Co (TSE:7769) Overvalued in 2026?

Based on GuruFocus' analysis, Rhythm Co stock appears to be undervalued. The current stock price of 円3,810.00 is trading 1.8% below its estimated GF Value™ of 円3,879.16. GuruFocus considers Rhythm Co to be Fairly Valued.

Key valuation signals for TSE:7769:

  • Interest Coverage: 13.21 (28% below median its 10-year median of 18.25)
  • GF Value™: 円3,879.16 vs. price of 円3,810.00 (1.8% below fair value)
  • GF Score™: 75/100 with 6 warning signs
  • Industry Position: 69.9% above the Retail - Cyclical median (#247 of 822)

No single metric tells the full story. See the TSE:7769 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Rhythm Co Business Description

Address 1-299-12 Kitabukuro-cho Omiya-ku, Saitama-shi, Saitama, JPN, 330-9551
Rhythm Co Ltd is a watch manufacturer. The company is mainly engaged in the manufacturing and sale of clocks, jewelry, watches, electronic parts and equipment. It operates its business in two divisions including Precision Parts and Household Goods Business. The Precision Parts Business manufactures and sells precision parts used in automobiles, industrial equipment, optical equipment, office/communication equipment, solar power generation, home appliances, difficult precision molds, electronic equipment, information, automotive-related equipment and other decorative products. The Household Goods Business manufactures and sells clocks such as wall clocks, table clocks, alarm clocks, digital clocks and equipment clocks, clock movements, disaster prevention administrative radios and others.
75GF Score

Get the complete analysis for TSE:7769

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

円3,810.00
Price
円3,879.16
GF Value