Muromachi Chemicals (TSE:4885) Debt-to-EBITDA : 5.59 (As of Feb. 2026) — 62% Above Median

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TSE:4885 Muromachi Chemicals Inc TSE:4885
76 GF Score
Price 円894.00
GF Value 円989.72
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is Muromachi Chemicals Debt-to-EBITDA?

Muromachi Chemicals TSE:4885 -1.54% 76 Debt-to-EBITDA is 5.59 as of Feb. 2026, which is 62% above its 10-year median of 3.46. GuruFocus rates TSE:4885 with a GF Score™ of 76/100 and a GF Value™ of 円989.72 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,245 Chemicals companies, Muromachi Chemicals ranks worse than 67.55% on this metric.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Muromachi Chemicals's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2026 was 円598 Mil. Muromachi Chemicals's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2026 was 円1,686 Mil. Muromachi Chemicals's annualized EBITDA for the quarter that ended in Feb. 2026 was 円409 Mil. Muromachi Chemicals's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2026 was 5.59.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Muromachi Chemicals's Debt-to-EBITDA or its related term are showing as below:

TSE:4885' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.31   Med: 3.46   Max: 13.11
Current: 3.73

During the past 8 years, the highest Debt-to-EBITDA Ratio of Muromachi Chemicals was 13.11. The lowest was 2.31. And the median was 3.46.

TSE:4885's Debt-to-EBITDA is ranked worse than
67.55% of 1245 companies
in the Chemicals industry
Industry Median: 2.11 vs TSE:4885: 3.73

Muromachi Chemicals  (TSE:4885) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Muromachi Chemicals Debt-to-EBITDA Related Terms


Muromachi Chemicals Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Muromachi Chemicals's Debt-to-EBITDA 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.

Muromachi Chemicals Debt-to-EBITDA Chart

Muromachi Chemicals Annual Data
Trend May19 May20 May21 May22 May23 May24 May25 May26
Debt-to-EBITDA
Get a 7-Day Free Trial 3.10 3.20 2.31 3.05 3.73

Muromachi Chemicals Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
Debt-to-EBITDA 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 2.49 7.31 1.67 5.59 32.93

TSE:4885 vs DOW: Debt-to-EBITDA Comparison

For the Chemicals subindustry, Muromachi Chemicals's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.


Muromachi Chemicals Debt-to-EBITDA vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Muromachi Chemicals's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Muromachi Chemicals's Debt-to-EBITDA falls into.


TSE:4885
76GF Score
Muromachi Chemicals Inc TSE:4885
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Muromachi Chemicals Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Muromachi Chemicals's Debt-to-EBITDA for the fiscal year that ended in May. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(901.394 + 1203.448) / 564.584
=3.73

Muromachi Chemicals's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(598.441 + 1685.839) / 408.884
=5.59

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Feb. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 5.59 mean?
Muromachi Chemicals (TSE:4885) has a Debt-to-EBITDA of 5.59 as of Feb. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Muromachi Chemicals. This is 62% above median its historical median of 3.46. Over the past decade, Muromachi Chemicals' Debt-to-EBITDA has ranged from 2.31 to 13.11. According to the industry distribution chart, Muromachi Chemicals ranks #841 out of 1245 companies in the Chemicals industry, placing it in the top 67.6%.
Is Muromachi Chemicals' Debt-to-EBITDA too high?
Muromachi Chemicals' current Debt-to-EBITDA of 5.59 is 62% above median its 10-year median of 3.46. Over the past 10 years, this metric has ranged from a low of 2.31 to a high of 13.11. The Chemicals industry median Debt-to-EBITDA is 2.11. Muromachi Chemicals' value of 5.59 is 164.9% above this industry median. Based on the distribution chart, Muromachi Chemicals ranks #841 out of 1245 companies in the Chemicals industry, which is below the industry midpoint. Overall, Muromachi Chemicals has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Muromachi Chemicals' Debt-to-EBITDA compare to DOW?
According to the Chemicals industry distribution chart, Muromachi Chemicals ranks #841 out of 1245 companies for Debt-to-EBITDA. This places Muromachi Chemicals in the lower half of its industry. The industry median Debt-to-EBITDA is 2.11. Muromachi Chemicals' value of 5.59 is 164.9% above this benchmark. Historically, Muromachi Chemicals' own Debt-to-EBITDA has ranged from 2.31 to 13.11 over the past decade. While the company's 10-year median is 3.46 vs. the industry median of 2.11, Muromachi Chemicals 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 Debt-to-EBITDA for a Chemicals company?
The median Debt-to-EBITDA among Chemicals companies is 2.11, based on 1,245 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Muromachi Chemicals's current Debt-to-EBITDA of 5.59 is 164.9% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Muromachi Chemicals. For the Chemicals industry, the median Debt-to-EBITDA is 2.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muromachi Chemicals's current Debt-to-EBITDA is 5.59, which is 62% above median its own 10-year median of 3.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muromachi Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Muromachi Chemicals (TSE:4885) is currently considered Modestly Undervalued. The stock's GF Value™ is 円989.72, compared to a current price of 円894.00 — trading 9.7% below its estimated fair value. The current Debt-to-EBITDA is 5.59, which is 62% above median its 10-year median of 3.46 and 164.9% above the Chemicals industry median of 2.11. Muromachi Chemicals' overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Muromachi Chemicals (TSE:4885), the current Debt-to-EBITDA is 5.59 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 Muromachi Chemicals (TSE:4885) Overvalued in 2026?

Based on GuruFocus' analysis, Muromachi Chemicals stock appears to be undervalued. The current stock price of 円894.00 is trading 9.7% below its estimated GF Value™ of 円989.72. GuruFocus considers Muromachi Chemicals to be Modestly Undervalued.

Key valuation signals for TSE:4885:

  • Debt-to-EBITDA: 5.59 (62% above median its 10-year median of 3.46)
  • GF Value™: 円989.72 vs. price of 円894.00 (9.7% below fair value)
  • GF Score™: 76/100 with 2 warning signs
  • Industry Position: 164.9% above the Chemicals median (#841 of 1245)

No single metric tells the full story. See the TSE:4885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Muromachi Chemicals Business Description

Address 38-5 Shinshotachicho 1-chome, Omuta, Fukuoka, JPN, 836-0895
Muromachi Chemicals Inc is engaged in the production and distribution of pharmaceuticals, planning, production, and distribution of health foods, and distribution and processing of ion-exchange resin products. The Company has three reportable segments based on business type: Pharmaceuticals Business, Health Food Business, and Chemicals Business.
76GF Score

Get the complete analysis for TSE:4885

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

円894.00
Price
円989.72
GF Value