Nippon Paper Industries CoTSE:3863 +1.65%60 Interest Coverage is 3.29 as of Mar. 2026, which is 46% above its 10-year median of 2.25. GuruFocus rates TSE:3863 with a GF Score™ of 60/100 and a GF Value™ of 円1,145.76 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 183 Forest Products companies, Nippon Paper Industries Co ranks worse than 65.03% 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 Paper Industries Co's
Operating Income
for the
three
months ended in Mar. 2026 was 円10,168 Mil. Nippon Paper Industries Co's Interest Expense for the
three
months ended in Mar. 2026 was 円-3,089 Mil.
Nippon Paper Industries Co's interest coverage for the quarter that ended in Mar. 2026 was 3.29.
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. Nippon Paper Industries Co Ltd interest coverage is 2.25, which is low.
The historical rank and industry rank for Nippon Paper Industries Co's Interest Coverage or its related term are showing as below:
TSE:3863'
s Interest Coverage Range Over the Past 10 Years
Min: 1.64 Med: 2.25 Max: 5.52
Current: 2.25
TSE:3863's Interest Coverage is ranked worse than 65.03% of 183
companies
in the Forest Products industry
Industry Median: 3.98
vs TSE:3863: 2.25
Nippon Paper Industries Co (TSE:3863) 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 Paper Industries Co Interest Coverage Related Terms
Nippon Paper Industries Co Interest Coverage Historical Data
* 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 Paper Industries Co Interest Coverage Chart
Nippon Paper Industries Co Interest Coverage Competitor Comparison
For the Paper & Paper Products subindustry, Nippon Paper Industries 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 Paper Industries Co Interest Coverage vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Nippon Paper Industries Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nippon Paper Industries Co's Interest Coverage falls into.
Nippon Paper Industries 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:
* 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 Paper Industries Co (TSE:3863) has a Interest Coverage of 3.29 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Paper Industries Co and its competitors. This is 46% above median its historical median of 2.25. Over the past decade, Nippon Paper Industries Co's Interest Coverage has ranged from 1.64 to 5.52. According to the industry distribution chart, Nippon Paper Industries Co ranks #119 out of 183 companies in the Forest Products industry, placing it in the top 65%.
Is Nippon Paper Industries Co's Interest Coverage too high?
Nippon Paper Industries Co's current Interest Coverage of 3.29 is 46% above median its 10-year median of 2.25. Over the past 10 years, this metric has ranged from a low of 1.64 to a high of 5.52. The Forest Products industry median Interest Coverage is 3.98. Nippon Paper Industries Co's value of 3.29 is 17.3% below this industry median. Based on the distribution chart, Nippon Paper Industries Co ranks #119 out of 183 companies in the Forest Products industry, which is below the industry midpoint. Overall, Nippon Paper Industries Co has a GF Score™ of 60/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Paper Industries Co's Interest Coverage compare to competitors?
According to the Forest Products industry distribution chart, Nippon Paper Industries Co ranks #119 out of 183 companies for Interest Coverage. This places Nippon Paper Industries Co in the lower half of its industry. The industry median Interest Coverage is 3.98. Nippon Paper Industries Co's value of 3.29 is 17.3% below this benchmark. Historically, Nippon Paper Industries Co's own Interest Coverage has ranged from 1.64 to 5.52 over the past decade. While the company's 10-year median is 2.25 vs. the industry median of 3.98, Nippon Paper Industries Co has consistently been below 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 Forest Products company?
The median Interest Coverage among Forest Products companies is 3.98, based on 183 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 Paper Industries Co's current Interest Coverage of 3.29 is 17.3% below 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 Paper Industries Co and its competitors. For the Forest Products industry, the median Interest Coverage is 3.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Paper Industries Co's current Interest Coverage is 3.29, which is 46% above median its own 10-year median of 2.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Paper Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Paper Industries Co (TSE:3863) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,145.76, compared to a current price of 円1,297.00 — trading 13.2% above its estimated fair value. The current Interest Coverage is 3.29, which is 46% above median its 10-year median of 2.25 and 17.3% below the Forest Products industry median of 3.98. Nippon Paper Industries Co's overall GF Score™ is 60/100 with 5 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 Paper Industries Co (TSE:3863), the current Interest Coverage is 3.29 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 Paper Industries Co (TSE:3863) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Paper Industries Co stock appears to be overvalued.
The current stock price of 円1,297.00 is trading 13.2% above its estimated GF Value™ of 円1,145.76.
GuruFocus considers Nippon Paper Industries Co to be Modestly Overvalued.
Key valuation signals for TSE:3863:
Interest Coverage: 3.29 (46% above median its 10-year median of 2.25)
GF Value™: 円1,145.76 vs. price of 円1,297.00 (13.2% above fair value)
Industry Position: 17.3% below the Forest Products median (#119 of 183)
No single metric tells the full story. See the TSE:3863 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Paper Industries Co Ltd produces and sells a variety of paper products. The company's paper products include newsprint, printing, sanitary, and packaging paper, as well as container board and boxes. The firm also sells construction materials, and generates electric power. Nippon Paper organizes itself into four segments based on product type: pulp and paper; paper related; wood products and construction related; and other. The pulp and paper segment generates the majority of revenue. The majority of sales are made in Japan.
60GF Score
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