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Japan CommunicationsTSE:9424 +0.84%59 Interest Coverage is 27.55 as of Mar. 2026, which is 96% below its 10-year median of 634.94. GuruFocus rates TSE:9424 with a GF Score™ of 59/100 and a GF Value™ of 円240.08 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 287 Telecommunication Services companies, Japan Communications ranks better than 87.8% 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 Communications's
Operating Income
for the
three
months ended in Mar. 2026 was 円240 Mil. Japan Communications's Interest Expense for the
three
months ended in Mar. 2026 was 円-9 Mil.
Japan Communications's interest coverage for the quarter that ended in Mar. 2026 was 27.55.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Japan Communications's Interest Coverage or its related term are showing as below:
TSE:9424'
s Interest Coverage Range Over the Past 10 Years
Min: 36.38 Med: 634.94 Max: 5375.48
Current: 36.38
TSE:9424's Interest Coverage is ranked better than 87.8% of 287
companies
in the Telecommunication Services industry
Industry Median: 4.84
vs TSE:9424: 36.38
Japan Communications (TSE:9424) 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 Communications Interest Coverage Related Terms
Japan Communications Interest Coverage Historical Data
* Premium members only.
The historical data trend for Japan Communications'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:9424 vs VZ, TMUS, T: Interest Coverage Comparison
For the Telecom Services subindustry, Japan Communications'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 Communications Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Japan Communications's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Japan Communications's Interest Coverage falls into.
Japan Communications 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:
* 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 Communications (TSE:9424) has a Interest Coverage of 27.55 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Japan Communications and its competitors. This is 96% below median its historical median of 634.94. Over the past decade, Japan Communications' Interest Coverage has ranged from 36.38 to 5,375.48. According to the industry distribution chart, Japan Communications ranks #35 out of 287 companies in the Telecommunication Services industry, placing it in the top 12.2%.
Is Japan Communications' Interest Coverage too high?
Japan Communications' current Interest Coverage of 27.55 is 96% below median its 10-year median of 634.94. Over the past 10 years, this metric has ranged from a low of 36.38 to a high of 5,375.48. The Telecommunication Services industry median Interest Coverage is 4.84. Japan Communications' value of 27.55 is 469.2% above this industry median. Based on the distribution chart, Japan Communications ranks #35 out of 287 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Communications has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Japan Communications' Interest Coverage compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Japan Communications ranks #35 out of 287 companies for Interest Coverage. This places Japan Communications in the top 12% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 4.84. Japan Communications' value of 27.55 is 469.2% above this benchmark. Historically, Japan Communications' own Interest Coverage has ranged from 36.38 to 5,375.48 over the past decade. While the company's 10-year median is 634.94 vs. the industry median of 4.84, Japan Communications 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 Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.84, based on 287 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 Communications's current Interest Coverage of 27.55 is 469.2% 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 Japan Communications and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Communications's current Interest Coverage is 27.55, which is 96% below median its own 10-year median of 634.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Communications stock overvalued right now?
Based on GuruFocus' analysis, Japan Communications (TSE:9424) is currently considered Possible Value Trap. The stock's GF Value™ is 円240.08, compared to a current price of 円120.00 — trading 50% below its estimated fair value. The current Interest Coverage is 27.55, which is 96% below median its 10-year median of 634.94 and 469.2% above the Telecommunication Services industry median of 4.84. Japan Communications' overall GF Score™ is 59/100 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 Japan Communications (TSE:9424), the current Interest Coverage is 27.55 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 Japan Communications (TSE:9424) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Communications stock appears to be undervalued.
The current stock price of 円120.00 is trading 50% below its estimated GF Value™ of 円240.08.
GuruFocus considers Japan Communications to be Possible Value Trap.
Key valuation signals for TSE:9424:
Interest Coverage: 27.55 (96% below median its 10-year median of 634.94)
GF Value™: 円240.08 vs. price of 円120.00 (50% below fair value)
Industry Position: 469.2% above the Telecommunication Services median (#35 of 287)
No single metric tells the full story. See the TSE:9424 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Communications Inc is a mobile virtual network operator. It creates the next generation internet to assist industrial structure through mobile technology. The company provides mobile platforms to handset manufacturers, IP-PBX makers, system integrators, and others.
59GF Score
Get the complete analysis for TSE:9424
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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