Daiwa Co (TSE:8247) Interest Coverage: 0.50 (As of Feb. 2026) — 65% Below Median

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TSE:8247 Daiwa Co Ltd TSE:8247
46 GF Score
Price 円298.00
GF Value 円414.67
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Daiwa Co Interest Coverage?

Daiwa Co TSE:8247 -0.33% 46 Interest Coverage is 0.50 as of Feb. 2026, which is 65% below its 10-year median of 1.42. GuruFocus rates TSE:8247 with a GF Score™ of 46/100 and a GF Value™ of 円414.67 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 830 Retail - Cyclical companies, Daiwa Co ranks worse than 88.92% 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. Daiwa Co's Operating Income for the six months ended in Feb. 2026 was 円35 Mil. Daiwa Co's Interest Expense for the six months ended in Feb. 2026 was 円-71 Mil. Daiwa Co's interest coverage for the quarter that ended in Feb. 2026 was 0.50. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Daiwa Co Ltd interest coverage is 1.34, which is low.

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

TSE:8247' s Interest Coverage Range Over the Past 10 Years
Min: 0.88   Med: 1.42   Max: 3.33
Current: 1.34


TSE:8247's Interest Coverage is ranked worse than
88.92% of 830 companies
in the Retail - Cyclical industry
Industry Median: 7.45 vs TSE:8247: 1.34

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


Daiwa Co  (TSE:8247) 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 .


Daiwa Co Interest Coverage Related Terms


Daiwa Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Daiwa 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.

Daiwa Co Interest Coverage Chart

Daiwa Co Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.88 1.84 1.50 1.34

Daiwa Co Semi-Annual Data
Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
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 1.86 1.96 1.05 2.17 0.50

TSE:8247 vs DDS, M: Interest Coverage Comparison

For the Department Stores subindustry, Daiwa 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.


Daiwa Co Interest Coverage vs Retail - Cyclical Industry

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

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


TSE:8247
46GF Score
Daiwa Co Ltd TSE:8247
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Daiwa 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.

Daiwa Co's Interest Coverage for the fiscal year that ended in Feb. 2026 is calculated as

Here, for the fiscal year that ended in Feb. 2026, Daiwa Co's Interest Expense was 円-143 Mil. Its Operating Income was 円191 Mil. And its Long-Term Debt & Capital Lease Obligation was 円2,078 Mil.

Interest Coverage=-1* Operating Income (A: Feb. 2026 )/Interest Expense (A: Feb. 2026 )
=-1*190.66/-142.686
=1.34

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

Here, for the six months ended in Feb. 2026, Daiwa Co's Interest Expense was 円-71 Mil. Its Operating Income was 円35 Mil. And its Long-Term Debt & Capital Lease Obligation was 円2,078 Mil.

Interest Coverage=-1* Operating Income (Q: Feb. 2026 )/Interest Expense (Q: Feb. 2026 )
=-1*35.357/-70.961
=0.50

* 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 0.50 mean?
Daiwa Co (TSE:8247) has a Interest Coverage of 0.50 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Daiwa Co and its competitors. This is 65% below median its historical median of 1.42. Over the past decade, Daiwa Co's Interest Coverage has ranged from 0.88 to 3.33. According to the industry distribution chart, Daiwa Co ranks #738 out of 830 companies in the Retail - Cyclical industry, placing it in the top 88.9%.
Is Daiwa Co's Interest Coverage too high?
Daiwa Co's current Interest Coverage of 0.50 is 65% below median its 10-year median of 1.42. Over the past 10 years, this metric has ranged from a low of 0.88 to a high of 3.33. The Retail - Cyclical industry median Interest Coverage is 7.45. Daiwa Co's value of 0.50 is 93.3% below this industry median. Based on the distribution chart, Daiwa Co ranks #738 out of 830 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Daiwa Co has a GF Score™ of 46/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Daiwa Co's Interest Coverage compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, Daiwa Co ranks #738 out of 830 companies for Interest Coverage. This places Daiwa Co in the lower half of its industry. The industry median Interest Coverage is 7.45. Daiwa Co's value of 0.50 is 93.3% below this benchmark. Historically, Daiwa Co's own Interest Coverage has ranged from 0.88 to 3.33 over the past decade. While the company's 10-year median is 1.42 vs. the industry median of 7.45, Daiwa 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 7.45, based on 830 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. Daiwa Co's current Interest Coverage of 0.50 is 93.3% 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 Daiwa Co and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daiwa Co's current Interest Coverage is 0.50, which is 65% below median its own 10-year median of 1.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiwa Co stock overvalued right now?
Based on GuruFocus' analysis, Daiwa Co (TSE:8247) is currently considered Modestly Undervalued. The stock's GF Value™ is 円414.67, compared to a current price of 円298.00 — trading 28.1% below its estimated fair value. The current Interest Coverage is 0.50, which is 65% below median its 10-year median of 1.42 and 93.3% below the Retail - Cyclical industry median of 7.45. Daiwa Co's overall GF Score™ is 46/100 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 Daiwa Co (TSE:8247), the current Interest Coverage is 0.50 as of Feb. 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 Daiwa Co (TSE:8247) Overvalued in 2026?

Based on GuruFocus' analysis, Daiwa Co stock appears to be undervalued. The current stock price of 円298.00 is trading 28.1% below its estimated GF Value™ of 円414.67. GuruFocus considers Daiwa Co to be Modestly Undervalued.

Key valuation signals for TSE:8247:

  • Interest Coverage: 0.50 (65% below median its 10-year median of 1.42)
  • GF Value™: 円414.67 vs. price of 円298.00 (28.1% below fair value)
  • GF Score™: 46/100 with 5 warning signs
  • Industry Position: 93.3% below the Retail - Cyclical median (#738 of 830)

No single metric tells the full story. See the TSE:8247 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Daiwa Co Business Description

Address 2-2-5 Katamachi, 5th Floor Katamachi Kirara, Kanazawa, JPN, 920-8561
Daiwa Co Ltd is a Japan-based company mainly engaged in the operation of department stores and other businesses. It operates two department stores in Kanazawa and Toyama. The company's reportable segments are department stores, hotels, publishing, food and beverages, and others. A majority of its revenue is generated from the department stores segment, which provides customers with various products, information, and services.
46GF Score

Get the complete analysis for TSE:8247

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

円298.00
Price
円414.67
GF Value