NEPON (FSE:7985) Interest Coverage: 17.89 (As of Mar. 2026) — 49% Above Median


FSE:7985 NEPON Inc FSE:7985
56 GF Score
Price 円716.00
GF Value 円1,538.56
Valuation Significantly Undervalued
! 6 Warning Signs
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What is NEPON Interest Coverage?

NEPON FSE:7985 -1.24% 56 Interest Coverage is 17.89 as of Mar. 2026, which is 49% above its 10-year median of 12.02. GuruFocus rates FSE:7985 with a GF Score™ of 56/100 and a GF Value™ of 円1,538.56 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 2,322 Industrial Products companies, NEPON ranks worse than 85.79% 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. NEPON's Operating Income for the six months ended in Mar. 2026 was 円270 Mil. NEPON's Interest Expense for the six months ended in Mar. 2026 was 円-15 Mil. NEPON's interest coverage for the quarter that ended in Mar. 2026 was 17.89. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. NEPON Inc interest coverage is 2.48, which is low.

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

FSE:7985' s Interest Coverage Range Over the Past 10 Years
Min: 1.43   Med: 12.02   Max: 20.64
Current: 2.48


FSE:7985's Interest Coverage is ranked worse than
85.79% of 2322 companies
in the Industrial Products industry
Industry Median: 14.775 vs FSE:7985: 2.48

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


NEPON  (FSE:7985) 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 .


NEPON Interest Coverage Related Terms


NEPON Interest Coverage Historical Data

* Premium members only.

The historical data trend for NEPON'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.

NEPON Interest Coverage Chart

NEPON Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.21 20.64 1.74 1.43 2.48

NEPON Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
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 12.16 0.00 18.39 0.00 17.89

FSE:7985 vs GEV, ETN, PH: Interest Coverage Comparison

For the Specialty Industrial Machinery subindustry, NEPON'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.


NEPON Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, NEPON's Interest Coverage distribution charts can be found below:

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


FSE:7985
56GF Score
NEPON Inc FSE:7985
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

NEPON 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.

NEPON's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, NEPON's Interest Expense was 円-29 Mil. Its Operating Income was 円71 Mil. And its Long-Term Debt & Capital Lease Obligation was 円40 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*70.597/-28.511
=2.48

NEPON's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the six months ended in Mar. 2026, NEPON's Interest Expense was 円-15 Mil. Its Operating Income was 円270 Mil. And its Long-Term Debt & Capital Lease Obligation was 円40 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*270.326/-15.113
=17.89

* 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 17.89 mean?
NEPON (FSE:7985) has a Interest Coverage of 17.89 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on NEPON and its competitors. This is 49% above median its historical median of 12.02. Over the past decade, NEPON's Interest Coverage has ranged from 1.43 to 20.64. According to the industry distribution chart, NEPON ranks #1992 out of 2322 companies in the Industrial Products industry, placing it in the top 85.8%.
Is NEPON's Interest Coverage too high?
NEPON's current Interest Coverage of 17.89 is 49% above median its 10-year median of 12.02. Over the past 10 years, this metric has ranged from a low of 1.43 to a high of 20.64. The Industrial Products industry median Interest Coverage is 14.78. NEPON's value of 17.89 is 21.1% above this industry median. Based on the distribution chart, NEPON ranks #1992 out of 2322 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 Interest Coverage compare to GEV and ETN?
According to the Industrial Products industry distribution chart, NEPON ranks #1992 out of 2322 companies for Interest Coverage. This places NEPON in the lower half of its industry. The industry median Interest Coverage is 14.78. NEPON's value of 17.89 is 21.1% above this benchmark. Historically, NEPON's own Interest Coverage has ranged from 1.43 to 20.64 over the past decade. While the company's 10-year median is 12.02 vs. the industry median of 14.78, 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 Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.78, based on 2,322 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. NEPON's current Interest Coverage of 17.89 is 21.1% 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 NEPON and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NEPON's current Interest Coverage is 17.89, which is 49% above median its own 10-year median of 12.02. 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 (FSE:7985) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,538.56, compared to a current price of 円716.00 — trading 53.5% below its estimated fair value. The current Interest Coverage is 17.89, which is 49% above median its 10-year median of 12.02 and 21.1% above the Industrial Products industry median of 14.78. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For NEPON (FSE:7985), the current Interest Coverage is 17.89 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 (FSE:7985) Overvalued in 2026?

Based on GuruFocus' analysis, NEPON stock appears to be undervalued. The current stock price of 円716.00 is trading 53.5% below its estimated GF Value™ of 円1,538.56. GuruFocus considers NEPON to be Significantly Undervalued.

Key valuation signals for FSE:7985:

  • Interest Coverage: 17.89 (49% above median its 10-year median of 12.02)
  • GF Value™: 円1,538.56 vs. price of 円716.00 (53.5% below fair value)
  • GF Score™: 56/100 with 6 warning signs
  • Industry Position: 21.1% above the Industrial Products median (#1992 of 2322)

No single metric tells the full story. See the FSE: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 FSE:7985

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

円716.00
Price
円1,538.56
GF Value