TOKAITSE:9729 +1.05%88 Interest Coverage is 182.29 as of Mar. 2026, which is 20% below its 10-year median of 227.82. GuruFocus rates TSE:9729 with a GF Score™ of 88/100 and a GF Value™ of 円2,587.49 (Fairly Valued). The stock has 1 warning sign investors should review. Among 812 Business Services companies, TOKAI ranks better than 86.58% 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. TOKAI's
Operating Income
for the
three
months ended in Mar. 2026 was 円2,552 Mil. TOKAI's Interest Expense for the
three
months ended in Mar. 2026 was 円-14 Mil.
TOKAI's interest coverage for the quarter that ended in Mar. 2026 was 182.29.
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. TOKAI Corp has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for TOKAI's Interest Coverage or its related term are showing as below:
TSE:9729'
s Interest Coverage Range Over the Past 10 Years
Min: 132.93 Med: 227.82 Max: 336.79
Current: 234.58
TSE:9729's Interest Coverage is ranked better than 86.58% of 812
companies
in the Business Services industry
Industry Median: 12.98
vs TSE:9729: 234.58
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 .
TOKAI Interest Coverage Related Terms
TOKAI Interest Coverage Historical Data
* Premium members only.
The historical data trend for TOKAI'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:9729 vs URI, SUNB, AER: Interest Coverage Comparison
For the Rental & Leasing Services subindustry, TOKAI'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.
TOKAI Interest Coverage vs Business Services Industry
For the Business Services industry and Industrials sector, TOKAI's Interest Coverage distribution charts can be found below:
* The bar in red indicates where TOKAI'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.
TOKAI (TSE:9729) has a Interest Coverage of 182.29 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on TOKAI and its competitors. This is 20% below median its historical median of 227.82. Over the past decade, TOKAI's Interest Coverage has ranged from 132.93 to 336.79. According to the industry distribution chart, TOKAI ranks #109 out of 812 companies in the Business Services industry, placing it in the top 13.4%.
Is TOKAI's Interest Coverage too high?
TOKAI's current Interest Coverage of 182.29 is 20% below median its 10-year median of 227.82. Over the past 10 years, this metric has ranged from a low of 132.93 to a high of 336.79. The Business Services industry median Interest Coverage is 12.98. TOKAI's value of 182.29 is 1304.4% above this industry median. Based on the distribution chart, TOKAI ranks #109 out of 812 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, TOKAI has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does TOKAI's Interest Coverage compare to URI and SUNB?
According to the Business Services industry distribution chart, TOKAI ranks #109 out of 812 companies for Interest Coverage. This places TOKAI in the top 13% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 12.98. TOKAI's value of 182.29 is 1304.4% above this benchmark. Historically, TOKAI's own Interest Coverage has ranged from 132.93 to 336.79 over the past decade. While the company's 10-year median is 227.82 vs. the industry median of 12.98, TOKAI 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 Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 812 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. TOKAI's current Interest Coverage of 182.29 is 1304.4% 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 TOKAI and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TOKAI's current Interest Coverage is 182.29, which is 20% below median its own 10-year median of 227.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TOKAI stock overvalued right now?
Based on GuruFocus' analysis, TOKAI (TSE:9729) is currently considered Fairly Valued. The stock's GF Value™ is 円2,587.49, compared to a current price of 円2,403.00 — trading 7.1% below its estimated fair value. The current Interest Coverage is 182.29, which is 20% below median its 10-year median of 227.82 and 1304.4% above the Business Services industry median of 12.98. TOKAI's overall GF Score™ is 88/100 with 1 warning sign 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 TOKAI (TSE:9729), the current Interest Coverage is 182.29 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 TOKAI (TSE:9729) Overvalued in 2026?
Based on GuruFocus' analysis, TOKAI stock appears to be undervalued.
The current stock price of 円2,403.00 is trading 7.1% below its estimated GF Value™ of 円2,587.49.
GuruFocus considers TOKAI to be Fairly Valued.
Key valuation signals for TSE:9729:
Interest Coverage: 182.29 (20% below median its 10-year median of 227.82)
GF Value™: 円2,587.49 vs. price of 円2,403.00 (7.1% below fair value)
Industry Position: 1304.4% above the Business Services median (#109 of 812)
No single metric tells the full story. See the TSE:9729 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TOKAI Corp is a Japan-based company which is involved in rental and leasing business. The firm is primarily engaged in supplying beddings for hospitals, clinics, and care facilities, as well as hotels and resort facilities, on a rental or contract basis. Its have business segments include The Healthy Life Services segment rents beddings and nursing care products, provides food service, and manufactures and sells cleaning machinery, The Dispensing Services segment operates pharmacies for dispensing service in front of general hospitals, The Environmental Services segment is engaged in the rental and sale of environmental products, and The Building Cleaning and Management services mainly for medical institutions and nursing care facilities.
88GF Score
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