Arcs CoTSE:9948 -1.02%84 Interest Coverage is 130.50 as of Feb. 2026, which is 34% above its 10-year median of 97.35. GuruFocus rates TSE:9948 with a GF Score™ of 84/100 and a GF Value™ of 円3,119.82 (Fairly Valued). The stock has 1 warning sign investors should review. Among 824 Retail - Cyclical companies, Arcs Co ranks better than 87.86% 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. Arcs Co's
Operating Income
for the
three
months ended in Feb. 2026 was 円5,742 Mil. Arcs Co's Interest Expense for the
three
months ended in Feb. 2026 was 円-44 Mil.
Arcs Co's interest coverage for the quarter that ended in Feb. 2026 was 130.50.
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. Arcs Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Arcs Co's Interest Coverage or its related term are showing as below:
TSE:9948'
s Interest Coverage Range Over the Past 10 Years
Min: 77.23 Med: 97.35 Max: 117.75
Current: 97.98
TSE:9948's Interest Coverage is ranked better than 87.86% of 824
companies
in the Retail - Cyclical industry
Industry Median: 7.94
vs TSE:9948: 97.98
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 .
Arcs Co Interest Coverage Related Terms
Arcs Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Arcs 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.
For the Department Stores subindustry, Arcs 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.
Arcs Co Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Arcs Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Arcs Co'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.
Arcs Co (TSE:9948) has a Interest Coverage of 130.50 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arcs Co and its competitors. This is 34% above median its historical median of 97.35. Over the past decade, Arcs Co's Interest Coverage has ranged from 77.23 to 117.75. According to the industry distribution chart, Arcs Co ranks #100 out of 824 companies in the Retail - Cyclical industry, placing it in the top 12.1%.
Is Arcs Co's Interest Coverage too high?
Arcs Co's current Interest Coverage of 130.50 is 34% above median its 10-year median of 97.35. Over the past 10 years, this metric has ranged from a low of 77.23 to a high of 117.75. The Retail - Cyclical industry median Interest Coverage is 7.94. Arcs Co's value of 130.50 is 1543.6% above this industry median. Based on the distribution chart, Arcs Co ranks #100 out of 824 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Arcs Co has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Arcs Co's Interest Coverage compare to DDS?
According to the Retail - Cyclical industry distribution chart, Arcs Co ranks #100 out of 824 companies for Interest Coverage. This places Arcs Co in the top 12% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 7.94. Arcs Co's value of 130.50 is 1543.6% above this benchmark. Historically, Arcs Co's own Interest Coverage has ranged from 77.23 to 117.75 over the past decade. While the company's 10-year median is 97.35 vs. the industry median of 7.94, Arcs 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 Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.94, based on 824 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. Arcs Co's current Interest Coverage of 130.50 is 1543.6% 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 Arcs Co and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arcs Co's current Interest Coverage is 130.50, which is 34% above median its own 10-year median of 97.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arcs Co stock overvalued right now?
Based on GuruFocus' analysis, Arcs Co (TSE:9948) is currently considered Fairly Valued. The stock's GF Value™ is 円3,119.82, compared to a current price of 円3,395.00 — trading 8.8% above its estimated fair value. The current Interest Coverage is 130.50, which is 34% above median its 10-year median of 97.35 and 1543.6% above the Retail - Cyclical industry median of 7.94. Arcs Co's overall GF Score™ is 84/100 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 Arcs Co (TSE:9948), the current Interest Coverage is 130.50 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 Arcs Co (TSE:9948) Overvalued in 2026?
Based on GuruFocus' analysis, Arcs Co stock appears to be overvalued.
The current stock price of 円3,395.00 is trading 8.8% above its estimated GF Value™ of 円3,119.82.
GuruFocus considers Arcs Co to be Fairly Valued.
Key valuation signals for TSE:9948:
Interest Coverage: 130.50 (34% above median its 10-year median of 97.35)
GF Value™: 円3,119.82 vs. price of 円3,395.00 (8.8% above fair value)
Industry Position: 1543.6% above the Retail - Cyclical median (#100 of 824)
No single metric tells the full story. See the TSE:9948 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arcs Co Ltd is a Japan-based company principally engaged in the supermarket business. The company also operates other businesses through subsidiaries, including tourism, building maintenance, real estate leasing, property and casualty insurance, life insurance agency, wholesale, food manufacturing, industrial and general waste collection, and construction businesses. The group operates in a single segment related to retail.
84GF Score
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