Avantia CoTSE:8904 -0.85%70 Interest Coverage is 1.15 as of Feb. 2026, which is 92% below its 10-year median of 14.69. GuruFocus rates TSE:8904 with a GF Score™ of 70/100 and a GF Value™ of 円859.49 (Fairly Valued). The stock has 7 warning signs investors should review. Among 78 Homebuilding & Construction companies, Avantia Co ranks worse than 65.38% 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. Avantia Co's
Operating Income
for the
six
months ended in Feb. 2026 was 円266 Mil. Avantia Co's Interest Expense for the
six
months ended in Feb. 2026 was 円-232 Mil.
Avantia Co's interest coverage for the quarter that ended in Feb. 2026 was 1.15.
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. Avantia Co Ltd interest coverage is 3.9, which is low.
The historical rank and industry rank for Avantia Co's Interest Coverage or its related term are showing as below:
TSE:8904'
s Interest Coverage Range Over the Past 10 Years
Min: 3.47 Med: 14.69 Max: 62.78
Current: 3.9
TSE:8904's Interest Coverage is ranked worse than 65.38% of 78
companies
in the Homebuilding & Construction industry
Industry Median: 8.305
vs TSE:8904: 3.90
Avantia Co (TSE:8904) 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 .
Avantia Co Interest Coverage Related Terms
Avantia Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Avantia 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:8904 vs DHI, PHM, LEN: Interest Coverage Comparison
For the Residential Construction subindustry, Avantia 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.
Avantia Co Interest Coverage vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Avantia Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Avantia 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.
Avantia Co (TSE:8904) has a Interest Coverage of 1.15 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Avantia Co and its competitors. This is 92% below median its historical median of 14.69. Over the past decade, Avantia Co's Interest Coverage has ranged from 3.47 to 62.78. According to the industry distribution chart, Avantia Co ranks #51 out of 78 companies in the Homebuilding & Construction industry, placing it in the top 65.4%.
Is Avantia Co's Interest Coverage too high?
Avantia Co's current Interest Coverage of 1.15 is 92% below median its 10-year median of 14.69. Over the past 10 years, this metric has ranged from a low of 3.47 to a high of 62.78. The Homebuilding & Construction industry median Interest Coverage is 8.31. Avantia Co's value of 1.15 is 86.2% below this industry median. Based on the distribution chart, Avantia Co ranks #51 out of 78 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, Avantia Co has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Avantia Co's Interest Coverage compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Avantia Co ranks #51 out of 78 companies for Interest Coverage. This places Avantia Co in the lower half of its industry. The industry median Interest Coverage is 8.31. Avantia Co's value of 1.15 is 86.2% below this benchmark. Historically, Avantia Co's own Interest Coverage has ranged from 3.47 to 62.78 over the past decade. While the company's 10-year median is 14.69 vs. the industry median of 8.31, Avantia 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 Homebuilding & Construction company?
The median Interest Coverage among Homebuilding & Construction companies is 8.31, based on 78 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. Avantia Co's current Interest Coverage of 1.15 is 86.2% 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 Avantia Co and its competitors. For the Homebuilding & Construction industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avantia Co's current Interest Coverage is 1.15, which is 92% below median its own 10-year median of 14.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avantia Co stock overvalued right now?
Based on GuruFocus' analysis, Avantia Co (TSE:8904) is currently considered Fairly Valued. The stock's GF Value™ is 円859.49, compared to a current price of 円819.00 — trading 4.7% below its estimated fair value. The current Interest Coverage is 1.15, which is 92% below median its 10-year median of 14.69 and 86.2% below the Homebuilding & Construction industry median of 8.31. Avantia Co's overall GF Score™ is 70/100 with 7 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 Avantia Co (TSE:8904), the current Interest Coverage is 1.15 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 Avantia Co (TSE:8904) Overvalued in 2026?
Based on GuruFocus' analysis, Avantia Co stock appears to be undervalued.
The current stock price of 円819.00 is trading 4.7% below its estimated GF Value™ of 円859.49.
GuruFocus considers Avantia Co to be Fairly Valued.
Key valuation signals for TSE:8904:
Interest Coverage: 1.15 (92% below median its 10-year median of 14.69)
GF Value™: 円859.49 vs. price of 円819.00 (4.7% below fair value)
Industry Position: 86.2% below the Homebuilding & Construction median (#51 of 78)
No single metric tells the full story. See the TSE:8904 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avantia Co Ltd is engaged in the planning, design and construction, interior coordination, and exterior design of houses and condominium projects in Japan.
70GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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