Nippon Gear Co (TSE:6356) Effective Interest Rate on Debt %: 0.86% (As of Mar. 2026)

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TSE:6356 Nippon Gear Co Ltd TSE:6356
71 GF Score
Price 円1,317.00
GF Value 円590.21
Valuation Significantly Overvalued
! 1 Warning Sign
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What is Nippon Gear Co Effective Interest Rate on Debt %?

Nippon Gear Co TSE:6356 +1.07% 71 Effective Interest Rate on Debt % is 0.86% as of Mar. 2026. GuruFocus rates TSE:6356 with a GF Score™ of 71/100 and a GF Value™ of 円590.21 (Significantly Overvalued). The stock has 1 warning sign investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Nippon Gear Co's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was 円1 Mil. Nippon Gear Co's average total debt for the quarter that ended in Mar. 2026 was 円78 Mil. Therefore, Nippon Gear Co's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 0.86%.


Nippon Gear Co  (TSE:6356) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Nippon Gear Co Effective Interest Rate on Debt % Related Terms


Nippon Gear Co Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Nippon Gear Co's Effective Interest Rate on Debt % 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.

Nippon Gear Co Effective Interest Rate on Debt % Chart

Nippon Gear Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.15 0.71 0.56 0.77 0.62

Nippon Gear Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Effective Interest Rate on Debt % 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 0.78 0.40 0.44 0.86 0.75

TSE:6356 vs ORLY, AZO, GPC: Effective Interest Rate on Debt % Comparison

For the Auto Parts subindustry, Nippon Gear Co's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.


Nippon Gear Co Effective Interest Rate on Debt % vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Nippon Gear Co's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Nippon Gear Co's Effective Interest Rate on Debt % falls into.


TSE:6356
71GF Score
Nippon Gear Co Ltd TSE:6356
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Nippon Gear Co Effective Interest Rate on Debt % Calculation

Nippon Gear Co's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Mar. 2025 )+Total Debt  (A: Mar. 2026 ))/ count )
=-1  *  -0.567/( (109.795+72.175)/ 2 )
=-1  *  -0.567/90.985
=0.62 %

where

Total Debt  (A: Mar. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=72.175 + 37.62
=109.795

Total Debt  (A: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=34.555 + 37.62
=72.175

Nippon Gear Co's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -0.676/( (84.715+72.175)/ 2 )
=-1  *  -0.676/78.445
=0.86 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=47.095 + 37.62
=84.715

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=34.555 + 37.62
=72.175

* 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 Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 0.86% mean?
Nippon Gear Co (TSE:6356) has a Effective Interest Rate on Debt % of 0.86% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Nippon Gear Co and its competitors.
Is Nippon Gear Co's Effective Interest Rate on Debt % too high?
Nippon Gear Co's current Effective Interest Rate on Debt % is 0.86%. Overall, Nippon Gear Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Gear Co's Effective Interest Rate on Debt % compare to ORLY and AZO?
Nippon Gear Co's Effective Interest Rate on Debt % of 0.86% can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Vehicles & Parts company?
A good Effective Interest Rate on Debt % depends on the Vehicles & Parts industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Nippon Gear Co and its competitors. Nippon Gear Co's current Effective Interest Rate on Debt % is 0.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Gear Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Gear Co (TSE:6356) is currently considered Significantly Overvalued. The stock's GF Value™ is 円590.21, compared to a current price of 円1,317.00 — trading 123.1% above its estimated fair value. The current Effective Interest Rate on Debt % is 0.86%. Nippon Gear Co's overall GF Score™ is 71/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Nippon Gear Co (TSE:6356), the current Effective Interest Rate on Debt % is 0.86% 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 Nippon Gear Co (TSE:6356) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon Gear Co stock appears to be overvalued. The current stock price of 円1,317.00 is trading 123.1% above its estimated GF Value™ of 円590.21. GuruFocus considers Nippon Gear Co to be Significantly Overvalued.

Key valuation signals for TSE:6356:

  • Effective Interest Rate on Debt %: 0.86%
  • GF Value™: 円590.21 vs. price of 円1,317.00 (123.1% above fair value)
  • GF Score™: 71/100 with 1 warning sign

No single metric tells the full story. See the TSE:6356 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nippon Gear Co Business Description

Address 1-7-14 Nishi-Shinbashi, 2nd Floor, Keihanshin Toranomon Building, Tokyo, JPN, 252-0811
Nippon Gear Co Ltd is engaged in the design, production, and sale of valve actuators, high-speed gear drivers, mixers, screw jacks, monitoring equipment, data communication equipment, control equipment, and software. It offers valve actuators for a range of applications in petroleum, nuclear, generating plants, and water/sewer pipelines; jacks for use in lifting/lowering, inclines, pulling, opening/closing, adjustment, and holding; gear drives for power plant, chemical plant, wastewater treatment plant, and other applications; and gears for automotive, railroad, industrial machine, and other industries.
71GF Score

Get the complete analysis for TSE:6356

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,317.00
Price
円590.21
GF Value