Nitto DenkoNDEKY +2.25%81 Interest Coverage is 108.69 as of Mar. 2026, which is 61% above its 10-year median of 67.66. GuruFocus rates NDEKY with a GF Score™ of 81/100 and a GF Value™ of $19.09 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,234 Chemicals companies, Nitto Denko ranks better than 83.55% 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. Nitto Denko's
Operating Income
for the
three
months ended in Mar. 2026 was $225 Mil. Nitto Denko's Interest Expense for the
three
months ended in Mar. 2026 was $-2 Mil.
Nitto Denko's interest coverage for the quarter that ended in Mar. 2026 was 108.69.
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. Nitto Denko Corp has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Nitto Denko's Interest Coverage or its related term are showing as below:
NDEKY'
s Interest Coverage Range Over the Past 10 Years
Min: 43.05 Med: 67.66 Max: 167.19
Current: 89.79
NDEKY's Interest Coverage is ranked better than 83.55% of 1234
companies
in the Chemicals industry
Industry Median: 10.18
vs NDEKY: 89.79
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 .
Nitto Denko Interest Coverage Related Terms
Nitto Denko Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nitto Denko'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.
NDEKY vs LIN, SHW, ECL: Interest Coverage Comparison
For the Specialty Chemicals subindustry, Nitto Denko'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.
Nitto Denko Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nitto Denko's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nitto Denko'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.
Nitto Denko (NDEKY) has a Interest Coverage of 108.69 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nitto Denko and its competitors. This is 61% above median its historical median of 67.66. Over the past decade, Nitto Denko's Interest Coverage has ranged from 43.05 to 167.19. According to the industry distribution chart, Nitto Denko ranks #203 out of 1234 companies in the Chemicals industry, placing it in the top 16.5%.
Is Nitto Denko's Interest Coverage too high?
Nitto Denko's current Interest Coverage of 108.69 is 61% above median its 10-year median of 67.66. Over the past 10 years, this metric has ranged from a low of 43.05 to a high of 167.19. The Chemicals industry median Interest Coverage is 10.18. Nitto Denko's value of 108.69 is 967.7% above this industry median. Based on the distribution chart, Nitto Denko ranks #203 out of 1234 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Nitto Denko has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nitto Denko's Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, Nitto Denko ranks #203 out of 1234 companies for Interest Coverage. This places Nitto Denko in the top 17% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 10.18. Nitto Denko's value of 108.69 is 967.7% above this benchmark. Historically, Nitto Denko's own Interest Coverage has ranged from 43.05 to 167.19 over the past decade. While the company's 10-year median is 67.66 vs. the industry median of 10.18, Nitto Denko 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.18, based on 1,234 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. Nitto Denko's current Interest Coverage of 108.69 is 967.7% 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 Nitto Denko and its competitors. For the Chemicals industry, the median Interest Coverage is 10.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nitto Denko's current Interest Coverage is 108.69, which is 61% above median its own 10-year median of 67.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nitto Denko stock overvalued right now?
Based on GuruFocus' analysis, Nitto Denko (NDEKY) is currently considered Fairly Valued. The stock's GF Value™ is $19.09, compared to a current price of $20.01 — trading 4.8% above its estimated fair value. The current Interest Coverage is 108.69, which is 61% above median its 10-year median of 67.66 and 967.7% above the Chemicals industry median of 10.18. Nitto Denko's overall GF Score™ is 81/100 with 2 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 Nitto Denko (NDEKY), the current Interest Coverage is 108.69 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 Nitto Denko (NDEKY) Overvalued in 2026?
Based on GuruFocus' analysis, Nitto Denko stock appears to be overvalued.
The current stock price of $20.01 is trading 4.8% above its estimated GF Value™ of $19.09.
GuruFocus considers Nitto Denko to be Fairly Valued.
Key valuation signals for NDEKY:
Interest Coverage: 108.69 (61% above median its 10-year median of 67.66)
GF Value™: $19.09 vs. price of $20.01 (4.8% above fair value)
Industry Position: 967.7% above the Chemicals median (#203 of 1234)
No single metric tells the full story. See the NDEKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nitto Denko is a manufacturer of advanced materials for niche industry applications. Its three segments are industrial tape (35% of revenue), optical films (55%), and materials used in health science (10%). Its advanced materials are used in manufacturing with main customers being suppliers to original equipment manufacturers in the computer, smartphone, and automobile industries. The company has more than 15,000 products. Most revenue is from Asia/Oceania (60%), followed by Japan (20%). The remainder is roughly equally split between Americas and Europe, each representing about 10% of revenue.
81GF Score
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