Subaru Co (TSE:9778) Interest Coverage: 29.15 (As of Feb. 2026) — 36% Below Median

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TSE:9778 Subaru Co Ltd TSE:9778
55 GF Score
Price 円5,800.00
GF Value 円6,638.36
Valuation Modestly Undervalued
! 7 Warning Signs
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What is Subaru Co Interest Coverage?

Subaru Co TSE:9778 55 Interest Coverage is 29.15 as of Feb. 2026, which is 36% below its 10-year median of 45.35. GuruFocus rates TSE:9778 with a GF Score™ of 55/100 and a GF Value™ of 円6,638.36 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 194 Education companies, Subaru Co ranks worse than 55.67% 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. Subaru Co's Operating Income for the six months ended in Feb. 2026 was 円173 Mil. Subaru Co's Interest Expense for the six months ended in Feb. 2026 was 円-6 Mil. Subaru Co's interest coverage for the quarter that ended in Feb. 2026 was 29.15. The higher the ratio, the stronger the company's financial strength is.

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

TSE:9778' s Interest Coverage Range Over the Past 10 Years
Min: 10.17   Med: 45.35   Max: 86.31
Current: 10.17


TSE:9778's Interest Coverage is ranked worse than
55.67% of 194 companies
in the Education industry
Industry Median: 13.39 vs TSE:9778: 10.17

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


Subaru Co  (TSE:9778) 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 .


Subaru Co Interest Coverage Related Terms


Subaru Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Subaru 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.

Subaru Co Interest Coverage Chart

Subaru Co Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 86.31 65.48 27.29 13.26 10.17

Subaru Co Semi-Annual Data
Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
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 67.42 0.00 40.76 0.00 29.15

TSE:9778 vs EDU, TAL, LAUR: Interest Coverage Comparison

For the Education & Training Services subindustry, Subaru 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.


Subaru Co Interest Coverage vs Education Industry

For the Education industry and Consumer Defensive sector, Subaru Co's Interest Coverage distribution charts can be found below:

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


TSE:9778
55GF Score
Subaru Co Ltd TSE:9778
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Subaru 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.

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

Here, for the fiscal year that ended in Feb. 2026, Subaru Co's Interest Expense was 円-11 Mil. Its Operating Income was 円112 Mil. And its Long-Term Debt & Capital Lease Obligation was 円1,053 Mil.

Interest Coverage=-1* Operating Income (A: Feb. 2026 )/Interest Expense (A: Feb. 2026 )
=-1*112.373/-11.052
=10.17

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

Here, for the six months ended in Feb. 2026, Subaru Co's Interest Expense was 円-6 Mil. Its Operating Income was 円173 Mil. And its Long-Term Debt & Capital Lease Obligation was 円1,053 Mil.

Interest Coverage=-1* Operating Income (Q: Feb. 2026 )/Interest Expense (Q: Feb. 2026 )
=-1*172.669/-5.924
=29.15

* 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 29.15 mean?
Subaru Co (TSE:9778) has a Interest Coverage of 29.15 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Subaru Co and its competitors. This is 36% below median its historical median of 45.35. Over the past decade, Subaru Co's Interest Coverage has ranged from 10.17 to 86.31. According to the industry distribution chart, Subaru Co ranks #108 out of 194 companies in the Education industry, placing it in the top 55.7%.
Is Subaru Co's Interest Coverage too high?
Subaru Co's current Interest Coverage of 29.15 is 36% below median its 10-year median of 45.35. Over the past 10 years, this metric has ranged from a low of 10.17 to a high of 86.31. The Education industry median Interest Coverage is 13.39. Subaru Co's value of 29.15 is 117.7% above this industry median. Based on the distribution chart, Subaru Co ranks #108 out of 194 companies in the Education industry, which is below the industry midpoint. Overall, Subaru Co has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Subaru Co's Interest Coverage compare to EDU and TAL?
According to the Education industry distribution chart, Subaru Co ranks #108 out of 194 companies for Interest Coverage. This places Subaru Co in the lower half of its industry. The industry median Interest Coverage is 13.39. Subaru Co's value of 29.15 is 117.7% above this benchmark. Historically, Subaru Co's own Interest Coverage has ranged from 10.17 to 86.31 over the past decade. While the company's 10-year median is 45.35 vs. the industry median of 13.39, Subaru 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 an Education company?
The median Interest Coverage among Education companies is 13.39, based on 194 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. Subaru Co's current Interest Coverage of 29.15 is 117.7% 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 Subaru Co and its competitors. For the Education industry, the median Interest Coverage is 13.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Subaru Co's current Interest Coverage is 29.15, which is 36% below median its own 10-year median of 45.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Subaru Co stock overvalued right now?
Based on GuruFocus' analysis, Subaru Co (TSE:9778) is currently considered Modestly Undervalued. The stock's GF Value™ is 円6,638.36, compared to a current price of 円5,800.00 — trading 12.6% below its estimated fair value. The current Interest Coverage is 29.15, which is 36% below median its 10-year median of 45.35 and 117.7% above the Education industry median of 13.39. Subaru Co's overall GF Score™ is 55/100 with 7 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 Subaru Co (TSE:9778), the current Interest Coverage is 29.15 as of Feb. 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 Subaru Co (TSE:9778) Overvalued in 2026?

Based on GuruFocus' analysis, Subaru Co stock appears to be undervalued. The current stock price of 円5,800.00 is trading 12.6% below its estimated GF Value™ of 円6,638.36. GuruFocus considers Subaru Co to be Modestly Undervalued.

Key valuation signals for TSE:9778:

  • Interest Coverage: 29.15 (36% below median its 10-year median of 45.35)
  • GF Value™: 円6,638.36 vs. price of 円5,800.00 (12.6% below fair value)
  • GF Score™: 55/100 with 7 warning signs
  • Industry Position: 117.7% above the Education median (#108 of 194)

No single metric tells the full story. See the TSE:9778 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Subaru Co Business Description

Address No. 9, No. 1, Kajiya-cho, Kagoshima, JPN, 892-0846
Subaru Co Ltd operates cram schools and provides academic tutoring and exam preparation services for kindergarten, elementary, and junior high school students. It also evaluates the academic achievement of the students using computer programs. It also conducts various mimetic tests such as All Kyushu mimetic tests, all Kyushu scholastic tests, trial undertaking, and other.
55GF Score

Get the complete analysis for TSE:9778

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

円5,800.00
Price
円6,638.36
GF Value