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H2O RetailingTSE:8242 -0.23%69 Interest Coverage is 26.88 as of Mar. 2026, which is 18% above its 10-year median of 22.70. GuruFocus rates TSE:8242 with a GF Score™ of 69/100 and a GF Value™ of 円2,112.85 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 255 Retail - Defensive companies, H2O Retailing ranks better than 76.47% 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. H2O Retailing's
Operating Income
for the
three
months ended in Mar. 2026 was 円7,122 Mil. H2O Retailing's Interest Expense for the
three
months ended in Mar. 2026 was 円-265 Mil.
H2O Retailing's interest coverage for the quarter that ended in Mar. 2026 was 26.88.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for H2O Retailing's Interest Coverage or its related term are showing as below:
TSE:8242'
s Interest Coverage Range Over the Past 10 Years
Min: 0.79 Med: 22.7 Max: 40.14
Current: 35.32
TSE:8242's Interest Coverage is ranked better than 76.47% of 255
companies
in the Retail - Defensive industry
Industry Median: 8.61
vs TSE:8242: 35.32
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 .
H2O Retailing Interest Coverage Related Terms
H2O Retailing Interest Coverage Historical Data
* Premium members only.
The historical data trend for H2O Retailing'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.
For the Grocery Stores subindustry, H2O Retailing'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.
H2O Retailing Interest Coverage vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, H2O Retailing's Interest Coverage distribution charts can be found below:
* The bar in red indicates where H2O Retailing'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.
H2O Retailing (TSE:8242) has a Interest Coverage of 26.88 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on H2O Retailing and its competitors. This is 18% above median its historical median of 22.70. Over the past decade, H2O Retailing's Interest Coverage has ranged from 0.79 to 40.14. According to the industry distribution chart, H2O Retailing ranks #60 out of 255 companies in the Retail - Defensive industry, placing it in the top 23.5%.
Is H2O Retailing's Interest Coverage too high?
H2O Retailing's current Interest Coverage of 26.88 is 18% above median its 10-year median of 22.70. Over the past 10 years, this metric has ranged from a low of 0.79 to a high of 40.14. The Retail - Defensive industry median Interest Coverage is 8.61. H2O Retailing's value of 26.88 is 212.2% above this industry median. Based on the distribution chart, H2O Retailing ranks #60 out of 255 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, H2O Retailing has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does H2O Retailing's Interest Coverage compare to KR?
According to the Retail - Defensive industry distribution chart, H2O Retailing ranks #60 out of 255 companies for Interest Coverage. This places H2O Retailing in the top 24% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.61. H2O Retailing's value of 26.88 is 212.2% above this benchmark. Historically, H2O Retailing's own Interest Coverage has ranged from 0.79 to 40.14 over the past decade. While the company's 10-year median is 22.70 vs. the industry median of 8.61, H2O Retailing 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 - Defensive company?
The median Interest Coverage among Retail - Defensive companies is 8.61, based on 255 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. H2O Retailing's current Interest Coverage of 26.88 is 212.2% 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 H2O Retailing and its competitors. For the Retail - Defensive industry, the median Interest Coverage is 8.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H2O Retailing's current Interest Coverage is 26.88, which is 18% above median its own 10-year median of 22.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H2O Retailing stock overvalued right now?
Based on GuruFocus' analysis, H2O Retailing (TSE:8242) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,112.85, compared to a current price of 円2,838.50 — trading 34.3% above its estimated fair value. The current Interest Coverage is 26.88, which is 18% above median its 10-year median of 22.70 and 212.2% above the Retail - Defensive industry median of 8.61. H2O Retailing's overall GF Score™ is 69/100 with 5 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 H2O Retailing (TSE:8242), the current Interest Coverage is 26.88 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 H2O Retailing (TSE:8242) Overvalued in 2026?
Based on GuruFocus' analysis, H2O Retailing stock appears to be overvalued.
The current stock price of 円2,838.50 is trading 34.3% above its estimated GF Value™ of 円2,112.85.
GuruFocus considers H2O Retailing to be Significantly Overvalued.
Key valuation signals for TSE:8242:
Interest Coverage: 26.88 (18% above median its 10-year median of 22.70)
GF Value™: 円2,112.85 vs. price of 円2,838.50 (34.3% above fair value)
Industry Position: 212.2% above the Retail - Defensive median (#60 of 255)
No single metric tells the full story. See the TSE:8242 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
H2O Retailing Corp is a Japan-based retailer that provides a broad range of merchandise to meet consumers' needs, from daily needs to special products. The company's core business is the department store business, which includes both the Hankyu and Hanshin department store chains. Superstore business is the company's another major business arm, including the Izumiya and Hankyu Oasis store chains. H2O Retailing also runs a specialty store business, engaged in providing cosmetics, ladies' footwear, and other products and services. In addition to retail businesses, the company operates other businesses as well, such as hotels and restaurants.
69GF Score
Get the complete analysis for TSE:8242
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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