NEPON (TSE:7985) Debt-to-EBITDA : 2.46 (As of Mar. 2026) — 46% Below Median

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TSE:7985 NEPON Inc TSE:7985
56 GF Score
Price 円799.00
GF Value 円1,533.71
Valuation Significantly Undervalued
! 6 Warning Signs
View Full Analysis

What is NEPON Debt-to-EBITDA?

NEPON TSE:7985 -0.62% 56 Debt-to-EBITDA is 2.46 as of Mar. 2026, which is 46% below its 10-year median of 4.55. GuruFocus rates TSE:7985 with a GF Score™ of 56/100 and a GF Value™ of 円1,533.71 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 2,331 Industrial Products companies, NEPON ranks worse than 85.54% on this metric.

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

NEPON's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was 円1,710 Mil. NEPON's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was 円40 Mil. NEPON's annualized EBITDA for the quarter that ended in Mar. 2026 was 円710 Mil. NEPON's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 2.46.

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 NEPON's Debt-to-EBITDA or its related term are showing as below:

TSE:7985' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 3.51   Med: 4.55   Max: 8.43
Current: 7.18

During the past 13 years, the highest Debt-to-EBITDA Ratio of NEPON was 8.43. The lowest was 3.51. And the median was 4.55.

TSE:7985's Debt-to-EBITDA is ranked worse than
85.54% of 2331 companies
in the Industrial Products industry
Industry Median: 1.68 vs TSE:7985: 7.18

NEPON  (TSE:7985) 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.


NEPON Debt-to-EBITDA Related Terms


NEPON Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for NEPON'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.

NEPON Debt-to-EBITDA Chart

NEPON Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.51 3.61 7.07 8.43 7.18

NEPON Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
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 3.68 -7.35 2.71 -7.43 2.46

TSE:7985 vs GEV, ETN, PH: Debt-to-EBITDA Comparison

For the Specialty Industrial Machinery subindustry, NEPON'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.


NEPON Debt-to-EBITDA vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, NEPON's Debt-to-EBITDA distribution charts can be found below:

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


TSE:7985
56GF Score
NEPON Inc TSE:7985
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

NEPON Debt-to-EBITDA Calculation

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

NEPON's Debt-to-EBITDA for the fiscal year that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1709.884 + 39.862) / 243.723
=7.18

NEPON's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1709.884 + 39.862) / 710.072
=2.46

* 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 two times the quarterly (Mar. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 2.46 mean?
NEPON (TSE:7985) has a Debt-to-EBITDA of 2.46 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on NEPON. This is 46% below median its historical median of 4.55. Over the past decade, NEPON's Debt-to-EBITDA has ranged from 3.51 to 8.43. According to the industry distribution chart, NEPON ranks #1994 out of 2331 companies in the Industrial Products industry, placing it in the top 85.5%.
Is NEPON's Debt-to-EBITDA too high?
NEPON's current Debt-to-EBITDA of 2.46 is 46% below median its 10-year median of 4.55. Over the past 10 years, this metric has ranged from a low of 3.51 to a high of 8.43. The Industrial Products industry median Debt-to-EBITDA is 1.68. NEPON's value of 2.46 is 46.4% above this industry median. Based on the distribution chart, NEPON ranks #1994 out of 2331 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, NEPON has a GF Score™ of 56/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NEPON's Debt-to-EBITDA compare to GEV and ETN?
According to the Industrial Products industry distribution chart, NEPON ranks #1994 out of 2331 companies for Debt-to-EBITDA. This places NEPON in the lower half of its industry. The industry median Debt-to-EBITDA is 1.68. NEPON's value of 2.46 is 46.4% above this benchmark. Historically, NEPON's own Debt-to-EBITDA has ranged from 3.51 to 8.43 over the past decade. While the company's 10-year median is 4.55 vs. the industry median of 1.68, NEPON 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 an Industrial Products company?
The median Debt-to-EBITDA among Industrial Products companies is 1.68, based on 2,331 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. NEPON's current Debt-to-EBITDA of 2.46 is 46.4% 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 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 NEPON. For the Industrial Products industry, the median Debt-to-EBITDA is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NEPON's current Debt-to-EBITDA is 2.46, which is 46% below median its own 10-year median of 4.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NEPON stock overvalued right now?
Based on GuruFocus' analysis, NEPON (TSE:7985) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,533.71, compared to a current price of 円799.00 — trading 47.9% below its estimated fair value. The current Debt-to-EBITDA is 2.46, which is 46% below median its 10-year median of 4.55 and 46.4% above the Industrial Products industry median of 1.68. NEPON's overall GF Score™ is 56/100 with 6 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 NEPON (TSE:7985), the current Debt-to-EBITDA is 2.46 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 NEPON (TSE:7985) Overvalued in 2026?

Based on GuruFocus' analysis, NEPON stock appears to be undervalued. The current stock price of 円799.00 is trading 47.9% below its estimated GF Value™ of 円1,533.71. GuruFocus considers NEPON to be Significantly Undervalued.

Key valuation signals for TSE:7985:

  • Debt-to-EBITDA: 2.46 (46% below median its 10-year median of 4.55)
  • GF Value™: 円1,533.71 vs. price of 円799.00 (47.9% below fair value)
  • GF Score™: 56/100 with 6 warning signs
  • Industry Position: 46.4% above the Industrial Products median (#1994 of 2331)

No single metric tells the full story. See the TSE:7985 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


NEPON Business Description

Other Exchanges 7985:Japan
Address 1-4-2 Shibuya, Shibuya-ku, Tokyo, JPN, 150-0002
NEPON Inc manufactures heating equipment for greenhouses and portable flush toilets. It also manufactures and sales agricultural machine which includes hot air heater for horticulture, heat pump for facilities gardening, hot water boiler for facilities gardening; General purpose equipment which include hot air heaters for buildings and factories, hot water boilers for commercial use, hot air generators for drying; Sanitary machines include foam wash type simple flush toilet, flushing type simple flush toilet, commercial foam wash toilet, toilet bowl; Construction related products include Design and construction of pipework, electrical work.
56GF Score

Get the complete analysis for TSE:7985

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

円799.00
Price
円1,533.71
GF Value