Toei Co (TSE:9605) Interest Coverage: 126.11 (As of Mar. 2026) — 51% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:9605 Toei Co Ltd TSE:9605
87 GF Score
Price 円5,890.00
GF Value 円5,169.84
Valuation Modestly Overvalued
! 4 Warning Signs
View Full Analysis

What is Toei Co Interest Coverage?

Toei Co TSE:9605 +2.97% 87 Interest Coverage is 126.11 as of Mar. 2026, which is 51% below its 10-year median of 257.47. GuruFocus rates TSE:9605 with a GF Score™ of 87/100 and a GF Value™ of 円5,169.84 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 605 Media - Diversified companies, Toei Co ranks better than 80.5% 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. Toei Co's Operating Income for the three months ended in Mar. 2026 was 円8,323 Mil. Toei Co's Interest Expense for the three months ended in Mar. 2026 was 円-66 Mil. Toei Co's interest coverage for the quarter that ended in Mar. 2026 was 126.11. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Toei Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

TSE:9605' s Interest Coverage Range Over the Past 10 Years
Min: 79.04   Med: 257.47   Max: 337.31
Current: 163.35


TSE:9605's Interest Coverage is ranked better than
80.5% of 605 companies
in the Media - Diversified industry
Industry Median: 11.67 vs TSE:9605: 163.35

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


Toei Co  (TSE:9605) 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 .


Toei Co Interest Coverage Related Terms


Toei Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Toei 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.

Toei Co Interest Coverage Chart

Toei Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 269.91 316.03 337.31 252.94 163.35

Toei Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 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 208.64 154.46 226.26 155.06 126.11

TSE:9605 vs NFLX, DIS, WBD: Interest Coverage Comparison

For the Entertainment subindustry, Toei 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.


Toei Co Interest Coverage vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Toei Co's Interest Coverage distribution charts can be found below:

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


TSE:9605
87GF Score
Toei Co Ltd TSE:9605
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Toei 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.

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

Here, for the fiscal year that ended in Mar. 2026, Toei Co's Interest Expense was 円-221 Mil. Its Operating Income was 円36,101 Mil. And its Long-Term Debt & Capital Lease Obligation was 円15,540 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*36101/-221
=163.35

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

Here, for the three months ended in Mar. 2026, Toei Co's Interest Expense was 円-66 Mil. Its Operating Income was 円8,323 Mil. And its Long-Term Debt & Capital Lease Obligation was 円15,540 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*8323/-66
=126.11

* 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 126.11 mean?
Toei Co (TSE:9605) has a Interest Coverage of 126.11 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Toei Co and its competitors. This is 51% below median its historical median of 257.47. Over the past decade, Toei Co's Interest Coverage has ranged from 79.04 to 337.31. According to the industry distribution chart, Toei Co ranks #118 out of 605 companies in the Media - Diversified industry, placing it in the top 19.5%.
Is Toei Co's Interest Coverage too high?
Toei Co's current Interest Coverage of 126.11 is 51% below median its 10-year median of 257.47. Over the past 10 years, this metric has ranged from a low of 79.04 to a high of 337.31. The Media - Diversified industry median Interest Coverage is 11.67. Toei Co's value of 126.11 is 980.6% above this industry median. Based on the distribution chart, Toei Co ranks #118 out of 605 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Toei Co has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Toei Co's Interest Coverage compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Toei Co ranks #118 out of 605 companies for Interest Coverage. This places Toei Co in the top 20% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 11.67. Toei Co's value of 126.11 is 980.6% above this benchmark. Historically, Toei Co's own Interest Coverage has ranged from 79.04 to 337.31 over the past decade. While the company's 10-year median is 257.47 vs. the industry median of 11.67, Toei 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 Media - Diversified company?
The median Interest Coverage among Media - Diversified companies is 11.67, based on 605 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. Toei Co's current Interest Coverage of 126.11 is 980.6% 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 Toei Co and its competitors. For the Media - Diversified industry, the median Interest Coverage is 11.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toei Co's current Interest Coverage is 126.11, which is 51% below median its own 10-year median of 257.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toei Co stock overvalued right now?
Based on GuruFocus' analysis, Toei Co (TSE:9605) is currently considered Modestly Overvalued. The stock's GF Value™ is 円5,169.84, compared to a current price of 円5,890.00 — trading 13.9% above its estimated fair value. The current Interest Coverage is 126.11, which is 51% below median its 10-year median of 257.47 and 980.6% above the Media - Diversified industry median of 11.67. Toei Co's overall GF Score™ is 87/100 with 4 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 Toei Co (TSE:9605), the current Interest Coverage is 126.11 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 Toei Co (TSE:9605) Overvalued in 2026?

Based on GuruFocus' analysis, Toei Co stock appears to be overvalued. The current stock price of 円5,890.00 is trading 13.9% above its estimated GF Value™ of 円5,169.84. GuruFocus considers Toei Co to be Modestly Overvalued.

Key valuation signals for TSE:9605:

  • Interest Coverage: 126.11 (51% below median its 10-year median of 257.47)
  • GF Value™: 円5,169.84 vs. price of 円5,890.00 (13.9% above fair value)
  • GF Score™: 87/100 with 4 warning signs
  • Industry Position: 980.6% above the Media - Diversified median (#118 of 605)

No single metric tells the full story. See the TSE:9605 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Toei Co Business Description

Address 3-2-17 Ginza, Chuo-ku, Tokyo, JPN, 104-8108
Toei Co Ltd engaged in the production of theatrical movies, TV dramas, direct-to-video productions, and anime, as well as a diverse range of businesses based on film production. The company releases both domestic and foreign movies, including its own films directly managed theaters and cinema complexes operated by the subsidiary T-Joy Co., Ltd. It also offers a digital cinema system providing packaged video software, such as DVD and Blu-ray discs. Its video distribution services engage in the sales of content to distribution media and the distribution of movies on iTunes in Japan. It operates more than ten official mobile websites via three major carriers namely NTT DOCOMO, au, and SoftBank.
87GF Score

Get the complete analysis for TSE:9605

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

円5,890.00
Price
円5,169.84
GF Value