Zero Co (TSE:9028) Interest Coverage: 153.40 (As of Mar. 2026) — 89% Above Median

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TSE:9028 Zero Co Ltd TSE:9028
80 GF Score
Price 円3,630.00
GF Value 円2,585.52
Valuation Significantly Overvalued
! 2 Warning Signs
View Full Analysis

What is Zero Co Interest Coverage?

Zero Co TSE:9028 +0.14% 80 Interest Coverage is 153.40 as of Mar. 2026, which is 89% above its 10-year median of 81.10. GuruFocus rates TSE:9028 with a GF Score™ of 80/100 and a GF Value™ of 円2,585.52 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,066 Vehicles & Parts companies, Zero Co ranks better than 90.62% 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. Zero Co's Operating Income for the three months ended in Mar. 2026 was 円3,068 Mil. Zero Co's Interest Expense for the three months ended in Mar. 2026 was 円-20 Mil. Zero Co's interest coverage for the quarter that ended in Mar. 2026 was 153.40. The higher the ratio, the stronger the company's financial strength is.

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

TSE:9028' s Interest Coverage Range Over the Past 10 Years
Min: 52.35   Med: 81.1   Max: 141.95
Current: 141.95


TSE:9028's Interest Coverage is ranked better than
90.62% of 1066 companies
in the Vehicles & Parts industry
Industry Median: 8.46 vs TSE:9028: 141.95

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


Zero Co  (TSE:9028) 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 .


Zero Co Interest Coverage Related Terms


Zero Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Zero 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.

Zero Co Interest Coverage Chart

Zero Co Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 140.32 100.31 115.34 135.28 134.59

Zero Co Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 145.53 147.76 125.55 N/A 153.40

TSE:9028 vs CVNA, PAG, KMX: Interest Coverage Comparison

For the Auto & Truck Dealerships subindustry, Zero 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.


Zero Co Interest Coverage vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Zero Co's Interest Coverage distribution charts can be found below:

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


TSE:9028
80GF Score
Zero Co Ltd TSE:9028
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zero 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.

Zero Co's Interest Coverage for the fiscal year that ended in Jun. 2025 is calculated as

Here, for the fiscal year that ended in Jun. 2025, Zero Co's Interest Expense was 円-76 Mil. Its Operating Income was 円10,229 Mil. And its Long-Term Debt & Capital Lease Obligation was 円3,582 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*10229/-76
=134.59

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

Here, for the three months ended in Mar. 2026, Zero Co's Interest Expense was 円-20 Mil. Its Operating Income was 円3,068 Mil. And its Long-Term Debt & Capital Lease Obligation was 円2,400 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*3068/-20
=153.40

* 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 153.40 mean?
Zero Co (TSE:9028) has a Interest Coverage of 153.40 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Zero Co and its competitors. This is 89% above median its historical median of 81.10. Over the past decade, Zero Co's Interest Coverage has ranged from 52.35 to 141.95. According to the industry distribution chart, Zero Co ranks #100 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 9.4%.
Is Zero Co's Interest Coverage too high?
Zero Co's current Interest Coverage of 153.40 is 89% above median its 10-year median of 81.10. Over the past 10 years, this metric has ranged from a low of 52.35 to a high of 141.95. The Vehicles & Parts industry median Interest Coverage is 8.46. Zero Co's value of 153.40 is 1713.2% above this industry median. Based on the distribution chart, Zero Co ranks #100 out of 1066 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Zero Co has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zero Co's Interest Coverage compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Zero Co ranks #100 out of 1066 companies for Interest Coverage. This places Zero Co in the top 9% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.46. Zero Co's value of 153.40 is 1713.2% above this benchmark. Historically, Zero Co's own Interest Coverage has ranged from 52.35 to 141.95 over the past decade. While the company's 10-year median is 81.10 vs. the industry median of 8.46, Zero Co 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.46, based on 1,066 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. Zero Co's current Interest Coverage of 153.40 is 1713.2% 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 Zero Co and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zero Co's current Interest Coverage is 153.40, which is 89% above median its own 10-year median of 81.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zero Co stock overvalued right now?
Based on GuruFocus' analysis, Zero Co (TSE:9028) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,585.52, compared to a current price of 円3,630.00 — trading 40.4% above its estimated fair value. The current Interest Coverage is 153.40, which is 89% above median its 10-year median of 81.10 and 1713.2% above the Vehicles & Parts industry median of 8.46. Zero Co's overall GF Score™ is 80/100 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 Zero Co (TSE:9028), the current Interest Coverage is 153.40 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 Zero Co (TSE:9028) Overvalued in 2026?

Based on GuruFocus' analysis, Zero Co stock appears to be overvalued. The current stock price of 円3,630.00 is trading 40.4% above its estimated GF Value™ of 円2,585.52. GuruFocus considers Zero Co to be Significantly Overvalued.

Key valuation signals for TSE:9028:

  • Interest Coverage: 153.40 (89% above median its 10-year median of 81.10)
  • GF Value™: 円2,585.52 vs. price of 円3,630.00 (40.4% above fair value)
  • GF Score™: 80/100 with 2 warning signs
  • Industry Position: 1713.2% above the Vehicles & Parts median (#100 of 1066)

No single metric tells the full story. See the TSE:9028 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zero Co Business Description

Address Solid Square West Tower 6th floor, 580 Horikawa-cho, Saiwai-ku, Kawasaki, JPN, 212-0013
Zero Co Ltd provides transportation services including new and used vehicle transportation, door-to-door transportation of private cars and motorbikes, new and heavy vehicle maintenance, handling and vehicle inspection at the auto auction.
80GF Score

Get the complete analysis for TSE:9028

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

円3,630.00
Price
円2,585.52
GF Value