Sougou Shouken Co (TSE:7850) Interest Coverage: 35.28 (As of Jan. 2026) — 445% Above Median


TSE:7850 Sougou Shouken Co Ltd TSE:7850
68 GF Score
Price 円874.00
GF Value 円887.13
Valuation Fairly Valued
! 1 Warning Sign
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What is Sougou Shouken Co Interest Coverage?

Sougou Shouken Co TSE:7850 +0.23% 68 Interest Coverage is 35.28 as of Jan. 2026, which is 445% above its 10-year median of 6.47. GuruFocus rates TSE:7850 with a GF Score™ of 68/100 and a GF Value™ of 円887.13 (Fairly Valued). The stock has 1 warning sign investors should review. Among 814 Business Services companies, Sougou Shouken Co ranks worse than 72.97% 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. Sougou Shouken Co's Operating Income for the six months ended in Jan. 2026 was 円937 Mil. Sougou Shouken Co's Interest Expense for the six months ended in Jan. 2026 was 円-27 Mil. Sougou Shouken Co's interest coverage for the quarter that ended in Jan. 2026 was 35.28. The higher the ratio, the stronger the company's financial strength is.

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

TSE:7850' s Interest Coverage Range Over the Past 10 Years
Min: 0.49   Med: 6.47   Max: 36.59
Current: 4.06


TSE:7850's Interest Coverage is ranked worse than
72.97% of 814 companies
in the Business Services industry
Industry Median: 12.98 vs TSE:7850: 4.06

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


Sougou Shouken Co  (TSE:7850) 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 .


Sougou Shouken Co Interest Coverage Related Terms


Sougou Shouken Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Sougou Shouken 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.

Sougou Shouken Co Interest Coverage Chart

Sougou Shouken Co Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.53 3.13 5.45 7.86 8.54

Sougou Shouken Co Semi-Annual Data
Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24 Jan25 Jul25 Jan26
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 49.28 0.00 44.56 0.00 35.28

TSE:7850 vs CTAS, CPRT, ULS: Interest Coverage Comparison

For the Specialty Business Services subindustry, Sougou Shouken 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.


Sougou Shouken Co Interest Coverage vs Business Services Industry

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

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


TSE:7850
68GF Score
Sougou Shouken Co Ltd TSE:7850
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sougou Shouken 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.

Sougou Shouken Co's Interest Coverage for the fiscal year that ended in Jul. 2025 is calculated as

Here, for the fiscal year that ended in Jul. 2025, Sougou Shouken Co's Interest Expense was 円-41 Mil. Its Operating Income was 円351 Mil. And its Long-Term Debt & Capital Lease Obligation was 円1,745 Mil.

Interest Coverage=-1* Operating Income (A: Jul. 2025 )/Interest Expense (A: Jul. 2025 )
=-1*351.172/-41.097
=8.54

Sougou Shouken Co's Interest Coverage for the quarter that ended in Jan. 2026 is calculated as

Here, for the six months ended in Jan. 2026, Sougou Shouken Co's Interest Expense was 円-27 Mil. Its Operating Income was 円937 Mil. And its Long-Term Debt & Capital Lease Obligation was 円1,052 Mil.

Interest Coverage=-1* Operating Income (Q: Jan. 2026 )/Interest Expense (Q: Jan. 2026 )
=-1*937.31/-26.564
=35.28

* 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 35.28 mean?
Sougou Shouken Co (TSE:7850) has a Interest Coverage of 35.28 as of Jan. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sougou Shouken Co and its competitors. This is 445% above median its historical median of 6.47. Over the past decade, Sougou Shouken Co's Interest Coverage has ranged from 0.49 to 36.59. According to the industry distribution chart, Sougou Shouken Co ranks #594 out of 814 companies in the Business Services industry, placing it in the top 73%.
Is Sougou Shouken Co's Interest Coverage too high?
Sougou Shouken Co's current Interest Coverage of 35.28 is 445% above median its 10-year median of 6.47. Over the past 10 years, this metric has ranged from a low of 0.49 to a high of 36.59. The Business Services industry median Interest Coverage is 12.98. Sougou Shouken Co's value of 35.28 is 171.8% above this industry median. Based on the distribution chart, Sougou Shouken Co ranks #594 out of 814 companies in the Business Services industry, which is below the industry midpoint. Overall, Sougou Shouken Co has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sougou Shouken Co's Interest Coverage compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Sougou Shouken Co ranks #594 out of 814 companies for Interest Coverage. This places Sougou Shouken Co in the lower half of its industry. The industry median Interest Coverage is 12.98. Sougou Shouken Co's value of 35.28 is 171.8% above this benchmark. Historically, Sougou Shouken Co's own Interest Coverage has ranged from 0.49 to 36.59 over the past decade. While the company's 10-year median is 6.47 vs. the industry median of 12.98, Sougou Shouken 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 814 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. Sougou Shouken Co's current Interest Coverage of 35.28 is 171.8% 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 Sougou Shouken 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. Sougou Shouken Co's current Interest Coverage is 35.28, which is 445% above median its own 10-year median of 6.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sougou Shouken Co stock overvalued right now?
Based on GuruFocus' analysis, Sougou Shouken Co (TSE:7850) is currently considered Fairly Valued. The stock's GF Value™ is 円887.13, compared to a current price of 円874.00 — trading 1.5% below its estimated fair value. The current Interest Coverage is 35.28, which is 445% above median its 10-year median of 6.47 and 171.8% above the Business Services industry median of 12.98. Sougou Shouken Co's overall GF Score™ is 68/100 with 1 warning sign 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 Sougou Shouken Co (TSE:7850), the current Interest Coverage is 35.28 as of Jan. 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 Sougou Shouken Co (TSE:7850) Overvalued in 2026?

Based on GuruFocus' analysis, Sougou Shouken Co stock appears to be undervalued. The current stock price of 円874.00 is trading 1.5% below its estimated GF Value™ of 円887.13. GuruFocus considers Sougou Shouken Co to be Fairly Valued.

Key valuation signals for TSE:7850:

  • Interest Coverage: 35.28 (445% above median its 10-year median of 6.47)
  • GF Value™: 円887.13 vs. price of 円874.00 (1.5% below fair value)
  • GF Score™: 68/100 with 1 warning sign
  • Industry Position: 171.8% above the Business Services median (#594 of 814)

No single metric tells the full story. See the TSE:7850 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sougou Shouken Co Business Description

Address 3-4-48 Higashi-Naebo2jo, Higashi-ku, Hokkaido, Sapporo, JPN, 007-0802
Sougou Shouken Co Ltd provides commercial printing services in Japan. It is engaged in planning, design, printing, and processing of leaflets, catalogs, posters, DMs, POPs, and publications. Its services include advertising inserts and flyers, POP advertising, Postures, and brochures, among others. It is also involved in printing new year cards and the production of the exhibition, seminar, and various promotional materials for event planning and sales promotion.
68GF Score

Get the complete analysis for TSE:7850

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

円874.00
Price
円887.13
GF Value