Japan ExcellentTSE:8987 +0.37%69 Interest Coverage is 7.61 as of Dec. 2025, which is 14% below its 10-year median of 8.87. GuruFocus rates TSE:8987 with a GF Score™ of 69/100 and a GF Value™ of 円128,670.43 (Fairly Valued). The stock has 9 warning signs investors should review. Among 701 REITs companies, Japan Excellent ranks better than 74.47% 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. Japan Excellent's
Operating Income
for the
six
months ended in Dec. 2025 was 円5,176 Mil. Japan Excellent's Interest Expense for the
six
months ended in Dec. 2025 was 円-680 Mil.
Japan Excellent's interest coverage for the quarter that ended in Dec. 2025 was 7.61.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Japan Excellent's Interest Coverage or its related term are showing as below:
TSE:8987'
s Interest Coverage Range Over the Past 10 Years
Min: 6.16 Med: 8.87 Max: 11.81
Current: 7.97
TSE:8987's Interest Coverage is ranked better than 74.47% of 701
companies
in the REITs industry
Industry Median: 3.12
vs TSE:8987: 7.97
Japan Excellent (TSE:8987) 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 .
Japan Excellent Interest Coverage Related Terms
Japan Excellent Interest Coverage Historical Data
* Premium members only.
The historical data trend for Japan Excellent'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:8987 vs BXP, ARE, VNO: Interest Coverage Comparison
For the REIT - Office subindustry, Japan Excellent'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.
Japan Excellent Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, Japan Excellent's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Japan Excellent'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.
Japan Excellent (TSE:8987) has a Interest Coverage of 7.61 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Japan Excellent and its competitors. This is 14% below median its historical median of 8.87. Over the past decade, Japan Excellent's Interest Coverage has ranged from 6.16 to 11.81. According to the industry distribution chart, Japan Excellent ranks #179 out of 701 companies in the REITs industry, placing it in the top 25.5%.
Is Japan Excellent's Interest Coverage too high?
Japan Excellent's current Interest Coverage of 7.61 is 14% below median its 10-year median of 8.87. Over the past 10 years, this metric has ranged from a low of 6.16 to a high of 11.81. The REITs industry median Interest Coverage is 3.12. Japan Excellent's value of 7.61 is 143.9% above this industry median. Based on the distribution chart, Japan Excellent ranks #179 out of 701 companies in the REITs industry, which is above the industry midpoint. Overall, Japan Excellent has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Japan Excellent's Interest Coverage compare to BXP and ARE?
According to the REITs industry distribution chart, Japan Excellent ranks #179 out of 701 companies for Interest Coverage. This puts Japan Excellent in the upper half of its industry. The industry median Interest Coverage is 3.12. Japan Excellent's value of 7.61 is 143.9% above this benchmark. Historically, Japan Excellent's own Interest Coverage has ranged from 6.16 to 11.81 over the past decade. While the company's 10-year median is 8.87 vs. the industry median of 3.12, Japan Excellent 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 REITs company?
The median Interest Coverage among REITs companies is 3.12, based on 701 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. Japan Excellent's current Interest Coverage of 7.61 is 143.9% 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 Japan Excellent and its competitors. For the REITs industry, the median Interest Coverage is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Excellent's current Interest Coverage is 7.61, which is 14% below median its own 10-year median of 8.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Excellent stock overvalued right now?
Based on GuruFocus' analysis, Japan Excellent (TSE:8987) is currently considered Fairly Valued. The stock's GF Value™ is 円128,670.43, compared to a current price of 円137,000.00 — trading 6.5% above its estimated fair value. The current Interest Coverage is 7.61, which is 14% below median its 10-year median of 8.87 and 143.9% above the REITs industry median of 3.12. Japan Excellent's overall GF Score™ is 69/100 with 9 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 Japan Excellent (TSE:8987), the current Interest Coverage is 7.61 as of Dec. 2025. 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 Japan Excellent (TSE:8987) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Excellent stock appears to be overvalued.
The current stock price of 円137,000.00 is trading 6.5% above its estimated GF Value™ of 円128,670.43.
GuruFocus considers Japan Excellent to be Fairly Valued.
Key valuation signals for TSE:8987:
Interest Coverage: 7.61 (14% below median its 10-year median of 8.87)
GF Value™: 円128,670.43 vs. price of 円137,000.00 (6.5% above fair value)
Industry Position: 143.9% above the REITs median (#179 of 701)
No single metric tells the full story. See the TSE:8987 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Excellent Inc is a real estate investment trust. It mainly invests in office buildings located in major metropolitan areas and pursues to create a portfolio that produces stable growth of income by acquiring properties. The company's portfolio of assets is managed by Japan Excellent Asset Management Co., Ltd.
69GF Score
Get the complete analysis for TSE:8987
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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