NPKYF (Nippon Kayaku Co) Interest Coverage: 25.35 (As of Dec. 2025) — 79% Below Median


NPKYF Nippon Kayaku Co Ltd NPKYF
79 GF Score
Price $8.44
GF Value $6.77
! 7 Warning Signs
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What is Nippon Kayaku Co Interest Coverage?

Nippon Kayaku Co NPKYF 79 Interest Coverage is 25.35 as of Dec. 2025, which is 79% below its 10-year median of 123.23. GuruFocus rates NPKYF with a GF Score™ of 79/100 and a GF Value™ of $6.77. The stock has 7 warning signs investors should review. Among 1,237 Chemicals companies, Nippon Kayaku Co ranks better than 75.42% 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. Nippon Kayaku Co's Operating Income for the three months ended in Dec. 2025 was $37 Mil. Nippon Kayaku Co's Interest Expense for the three months ended in Dec. 2025 was $-1 Mil. Nippon Kayaku Co's interest coverage for the quarter that ended in Dec. 2025 was 25.35. The higher the ratio, the stronger the company's financial strength is.

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

NPKYF' s Interest Coverage Range Over the Past 10 Years
Min: 47.57   Med: 123.23   Max: 256.73
Current: 47.57


NPKYF's Interest Coverage is ranked better than
75.42% of 1237 companies
in the Chemicals industry
Industry Median: 10.21 vs NPKYF: 47.57

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


Nippon Kayaku Co  (OTCPK:NPKYF) 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 .


Nippon Kayaku Co Interest Coverage Related Terms


Nippon Kayaku Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Nippon Kayaku Co'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.

Nippon Kayaku Co Interest Coverage Chart

Nippon Kayaku Co 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 256.56 208.68 57.76 91.07 47.58

Nippon Kayaku Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 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 84.77 30.75 104.11 25.35 136.09

NPKYF vs DOW: Interest Coverage Comparison

For the Chemicals subindustry, Nippon Kayaku Co'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.


Nippon Kayaku Co Interest Coverage vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Nippon Kayaku Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Nippon Kayaku Co's Interest Coverage falls into.


NPKYF
79GF Score
Nippon Kayaku Co Ltd NPKYF
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Nippon Kayaku Co 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.

Nippon Kayaku Co'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, Nippon Kayaku Co's Interest Expense was $-3 Mil. Its Operating Income was $142 Mil. And its Long-Term Debt & Capital Lease Obligation was $241 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*141.509/-2.974
=47.58

Nippon Kayaku Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the three months ended in Dec. 2025, Nippon Kayaku Co's Interest Expense was $-1 Mil. Its Operating Income was $37 Mil. And its Long-Term Debt & Capital Lease Obligation was $271 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*36.584/-1.443
=25.35

* 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 25.35 mean?
Nippon Kayaku Co (NPKYF) has a Interest Coverage of 25.35 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Kayaku Co and its competitors. This is 79% below median its historical median of 123.23. Over the past decade, Nippon Kayaku Co's Interest Coverage has ranged from 47.57 to 256.73. According to the industry distribution chart, Nippon Kayaku Co ranks #304 out of 1237 companies in the Chemicals industry, placing it in the top 24.6%.
Is Nippon Kayaku Co's Interest Coverage too high?
Nippon Kayaku Co's current Interest Coverage of 25.35 is 79% below median its 10-year median of 123.23. Over the past 10 years, this metric has ranged from a low of 47.57 to a high of 256.73. The Chemicals industry median Interest Coverage is 10.21. Nippon Kayaku Co's value of 25.35 is 148.3% above this industry median. Based on the distribution chart, Nippon Kayaku Co ranks #304 out of 1237 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Kayaku Co has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Nippon Kayaku Co's Interest Coverage compare to DOW?
According to the Chemicals industry distribution chart, Nippon Kayaku Co ranks #304 out of 1237 companies for Interest Coverage. This places Nippon Kayaku Co in the top 25% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 10.21. Nippon Kayaku Co's value of 25.35 is 148.3% above this benchmark. Historically, Nippon Kayaku Co's own Interest Coverage has ranged from 47.57 to 256.73 over the past decade. While the company's 10-year median is 123.23 vs. the industry median of 10.21, Nippon Kayaku Co 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 10.21, based on 1,237 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. Nippon Kayaku Co's current Interest Coverage of 25.35 is 148.3% 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 Nippon Kayaku Co and its competitors. For the Chemicals industry, the median Interest Coverage is 10.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Kayaku Co's current Interest Coverage is 25.35, which is 79% below median its own 10-year median of 123.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Kayaku Co stock overvalued right now?
Nippon Kayaku Co (NPKYF) has a current Interest Coverage of 25.35. The stock's GF Value™ is $6.77, compared to a current price of $8.44 — trading 24.7% above its estimated fair value. The current Interest Coverage is 25.35, which is 79% below median its 10-year median of 123.23 and 148.3% above the Chemicals industry median of 10.21. Nippon Kayaku Co's overall GF Score™ is 79/100 with 7 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 Nippon Kayaku Co (NPKYF), the current Interest Coverage is 25.35 as of Dec. 2025. 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 Kayaku Co (NPKYF) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon Kayaku Co stock appears to be overvalued. The current stock price of $8.44 is trading 24.7% above its estimated GF Value™ of $6.77.

Key valuation signals for NPKYF:

  • Interest Coverage: 25.35 (79% below median its 10-year median of 123.23)
  • GF Value™: $6.77 vs. price of $8.44 (24.7% above fair value)
  • GF Score™: 79/100 with 7 warning signs
  • Industry Position: 148.3% above the Chemicals median (#304 of 1237)

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


Nippon Kayaku Co Business Description

Address 1-1, Marunouchi 2-chome, Chiyoda-ku, Meiji Yasuda Seimei Building 19th and 20th Floors, Tokyo, JPN, 100-0005
Nippon Kayaku Co Ltd manufactures and sells a variety of chemicals. The firm organizes itself into four segments based on product type. The functional chemicals segment, which generates more revenue than any other segment, sells epoxy resins used as flame retardants in electronics, colorants and dyes used in inkjet printers and the manufacture of textiles. The pharmaceuticals segment sells anti-cancer drugs, biological drugs, cardiovascular agents, vitamin compounds, and anti-inflammatory agents. The safety systems segment sells airbag inflators and micro gas generators for seatbelt pretensioners to the automotive industry, both of which are used to protect passengers during an accident. The agrochemicals segment sells insecticides and herbicides. The majority of revenue comes from Asia.
79GF Score

Get the complete analysis for NPKYF

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

$8.44
Price
$6.77
GF Value