ROYAL HOLDINGS CoTSE:8179 +0.50%75 Interest Coverage is 5.31 as of Mar. 2026, which is 17% below its 10-year median of 6.37. GuruFocus rates TSE:8179 with a GF Score™ of 75/100 and a GF Value™ of 円1,474.70 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 261 Restaurants companies, ROYAL HOLDINGS Co ranks worse than 51.72% 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. ROYAL HOLDINGS Co's
Operating Income
for the
three
months ended in Mar. 2026 was 円1,567 Mil. ROYAL HOLDINGS Co's Interest Expense for the
three
months ended in Mar. 2026 was 円-295 Mil.
ROYAL HOLDINGS Co's interest coverage for the quarter that ended in Mar. 2026 was 5.31.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for ROYAL HOLDINGS Co's Interest Coverage or its related term are showing as below:
TSE:8179'
s Interest Coverage Range Over the Past 10 Years
Min: 1.78 Med: 6.37 Max: 8.8
Current: 6.14
TSE:8179's Interest Coverage is ranked worse than 51.72% of 261
companies
in the Restaurants industry
Industry Median: 6.46
vs TSE:8179: 6.14
ROYAL HOLDINGS Co (TSE:8179) 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 .
ROYAL HOLDINGS Co Interest Coverage Related Terms
ROYAL HOLDINGS Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for ROYAL HOLDINGS 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:8179 vs MCD, SBUX, YUM: Interest Coverage Comparison
For the Restaurants subindustry, ROYAL HOLDINGS 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.
ROYAL HOLDINGS Co Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, ROYAL HOLDINGS Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where ROYAL HOLDINGS 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.
ROYAL HOLDINGS Co (TSE:8179) has a Interest Coverage of 5.31 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ROYAL HOLDINGS Co and its competitors. This is 17% below median its historical median of 6.37. Over the past decade, ROYAL HOLDINGS Co's Interest Coverage has ranged from 1.78 to 8.80. According to the industry distribution chart, ROYAL HOLDINGS Co ranks #135 out of 261 companies in the Restaurants industry, placing it in the top 51.7%.
Is ROYAL HOLDINGS Co's Interest Coverage too high?
ROYAL HOLDINGS Co's current Interest Coverage of 5.31 is 17% below median its 10-year median of 6.37. Over the past 10 years, this metric has ranged from a low of 1.78 to a high of 8.80. The Restaurants industry median Interest Coverage is 6.46. ROYAL HOLDINGS Co's value of 5.31 is 17.8% below this industry median. Based on the distribution chart, ROYAL HOLDINGS Co ranks #135 out of 261 companies in the Restaurants industry, which is below the industry midpoint. Overall, ROYAL HOLDINGS Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ROYAL HOLDINGS Co's Interest Coverage compare to MCD and SBUX?
According to the Restaurants industry distribution chart, ROYAL HOLDINGS Co ranks #135 out of 261 companies for Interest Coverage. This places ROYAL HOLDINGS Co in the lower half of its industry. The industry median Interest Coverage is 6.46. ROYAL HOLDINGS Co's value of 5.31 is 17.8% below this benchmark. Historically, ROYAL HOLDINGS Co's own Interest Coverage has ranged from 1.78 to 8.80 over the past decade. While the company's 10-year median is 6.37 vs. the industry median of 6.46, ROYAL HOLDINGS 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 Restaurants company?
The median Interest Coverage among Restaurants companies is 6.46, based on 261 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. ROYAL HOLDINGS Co's current Interest Coverage of 5.31 is 17.8% 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 ROYAL HOLDINGS Co and its competitors. For the Restaurants industry, the median Interest Coverage is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ROYAL HOLDINGS Co's current Interest Coverage is 5.31, which is 17% below median its own 10-year median of 6.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ROYAL HOLDINGS Co stock overvalued right now?
Based on GuruFocus' analysis, ROYAL HOLDINGS Co (TSE:8179) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,474.70, compared to a current price of 円1,210.00 — trading 17.9% below its estimated fair value. The current Interest Coverage is 5.31, which is 17% below median its 10-year median of 6.37 and 17.8% below the Restaurants industry median of 6.46. ROYAL HOLDINGS Co's overall GF Score™ is 75/100 with 2 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 ROYAL HOLDINGS Co (TSE:8179), the current Interest Coverage is 5.31 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 ROYAL HOLDINGS Co (TSE:8179) Overvalued in 2026?
Based on GuruFocus' analysis, ROYAL HOLDINGS Co stock appears to be undervalued.
The current stock price of 円1,210.00 is trading 17.9% below its estimated GF Value™ of 円1,474.70.
GuruFocus considers ROYAL HOLDINGS Co to be Modestly Undervalued.
Key valuation signals for TSE:8179:
Interest Coverage: 5.31 (17% below median its 10-year median of 6.37)
GF Value™: 円1,474.70 vs. price of 円1,210.00 (17.9% below fair value)
Industry Position: 17.8% below the Restaurants median (#135 of 261)
No single metric tells the full story. See the TSE:8179 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ROYAL HOLDINGS Co Ltd operates five core businesses in Japan: Restaurants, Hotels, Contract Food Services, In-Flight Catering, and Food Manufacturing. Royal's Restaurants business operates various brands, including Royal Host, Tenya, Cowboy Family, Shakey's, Sizzler, Hananoki, Royal Garden Cafe, pinkberry, The Third Cafe, and Rose Bakery. The company's Hotel business operates Richmond Hotels. Contract Food Services provides food in airports, highway service areas, department stores, and convention centers. In-Flight Catering provides meals for dozens of airlines all over the world. The Food Manufacturing business has two central kitchens in Japan that serve the company's other businesses. The group has four segments: restaurant business, contract business, Hotel Business, & Food Business.
75GF Score
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