Tomoegawa (TSE:3878) Interest Coverage: 4.54 (As of Mar. 2026) — 24% Below Median


TSE:3878 Tomoegawa Corp TSE:3878
64 GF Score
Price 円781.00
GF Value 円818.82
Valuation Fairly Valued
! 4 Warning Signs
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What is Tomoegawa Interest Coverage?

Tomoegawa TSE:3878 -0.89% 64 Interest Coverage is 4.54 as of Mar. 2026, which is 24% below its 10-year median of 5.97. GuruFocus rates TSE:3878 with a GF Score™ of 64/100 and a GF Value™ of 円818.82 (Fairly Valued). The stock has 4 warning signs investors should review. Among 183 Forest Products companies, Tomoegawa ranks better than 59.56% 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. Tomoegawa's Operating Income for the six months ended in Mar. 2026 was 円668 Mil. Tomoegawa's Interest Expense for the six months ended in Mar. 2026 was 円-147 Mil. Tomoegawa's interest coverage for the quarter that ended in Mar. 2026 was 4.54. The higher the ratio, the stronger the company's financial strength is.

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

TSE:3878' s Interest Coverage Range Over the Past 10 Years
Min: 3   Med: 5.97   Max: 11.83
Current: 5.84


TSE:3878's Interest Coverage is ranked better than
59.56% of 183 companies
in the Forest Products industry
Industry Median: 3.98 vs TSE:3878: 5.84

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


Tomoegawa  (TSE:3878) 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 .


Tomoegawa Interest Coverage Related Terms


Tomoegawa Interest Coverage Historical Data

* Premium members only.

The historical data trend for Tomoegawa'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.

Tomoegawa Interest Coverage Chart

Tomoegawa 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 11.83 10.54 6.48 5.62 5.84

Tomoegawa 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 5.05 8.47 3.03 7.29 4.54

Tomoegawa Interest Coverage Competitor Comparison

For the Paper & Paper Products subindustry, Tomoegawa'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.


Tomoegawa Interest Coverage vs Forest Products Industry

For the Forest Products industry and Basic Materials sector, Tomoegawa's Interest Coverage distribution charts can be found below:

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


TSE:3878
64GF Score
Tomoegawa Corp TSE:3878
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Tomoegawa 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.

Tomoegawa'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, Tomoegawa's Interest Expense was 円-278 Mil. Its Operating Income was 円1,623 Mil. And its Long-Term Debt & Capital Lease Obligation was 円3,979 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*1623/-278
=5.84

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

Here, for the six months ended in Mar. 2026, Tomoegawa's Interest Expense was 円-147 Mil. Its Operating Income was 円668 Mil. And its Long-Term Debt & Capital Lease Obligation was 円3,979 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*668/-147
=4.54

* 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 4.54 mean?
Tomoegawa (TSE:3878) has a Interest Coverage of 4.54 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tomoegawa and its competitors. This is 24% below median its historical median of 5.97. Over the past decade, Tomoegawa's Interest Coverage has ranged from 3.00 to 11.83. According to the industry distribution chart, Tomoegawa ranks #74 out of 183 companies in the Forest Products industry, placing it in the top 40.4%.
Is Tomoegawa's Interest Coverage too high?
Tomoegawa's current Interest Coverage of 4.54 is 24% below median its 10-year median of 5.97. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 11.83. The Forest Products industry median Interest Coverage is 3.98. Tomoegawa's value of 4.54 is 14.1% above this industry median. Based on the distribution chart, Tomoegawa ranks #74 out of 183 companies in the Forest Products industry, which is above the industry midpoint. Overall, Tomoegawa has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tomoegawa's Interest Coverage compare to competitors?
According to the Forest Products industry distribution chart, Tomoegawa ranks #74 out of 183 companies for Interest Coverage. This puts Tomoegawa in the upper half of its industry. The industry median Interest Coverage is 3.98. Tomoegawa's value of 4.54 is 14.1% above this benchmark. Historically, Tomoegawa's own Interest Coverage has ranged from 3.00 to 11.83 over the past decade. While the company's 10-year median is 5.97 vs. the industry median of 3.98, Tomoegawa 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 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. Tomoegawa's current Interest Coverage of 4.54 is 14.1% 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 Tomoegawa 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. Tomoegawa's current Interest Coverage is 4.54, which is 24% below median its own 10-year median of 5.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tomoegawa stock overvalued right now?
Based on GuruFocus' analysis, Tomoegawa (TSE:3878) is currently considered Fairly Valued. The stock's GF Value™ is 円818.82, compared to a current price of 円781.00 — trading 4.6% below its estimated fair value. The current Interest Coverage is 4.54, which is 24% below median its 10-year median of 5.97 and 14.1% above the Forest Products industry median of 3.98. Tomoegawa's overall GF Score™ is 64/100 with 4 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 Tomoegawa (TSE:3878), the current Interest Coverage is 4.54 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 Tomoegawa (TSE:3878) Overvalued in 2026?

Based on GuruFocus' analysis, Tomoegawa stock appears to be undervalued. The current stock price of 円781.00 is trading 4.6% below its estimated GF Value™ of 円818.82. GuruFocus considers Tomoegawa to be Fairly Valued.

Key valuation signals for TSE:3878:

  • Interest Coverage: 4.54 (24% below median its 10-year median of 5.97)
  • GF Value™: 円818.82 vs. price of 円781.00 (4.6% below fair value)
  • GF Score™: 64/100 with 4 warning signs
  • Industry Position: 14.1% above the Forest Products median (#74 of 183)

No single metric tells the full story. See the TSE:3878 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tomoegawa Business Description

Address 2-1-3 Kyobashi, 7th Floor, KYOBASHI Trust Tower, Chuo-ku, Tokyo, JPN, 104-8335
Tomoegawa Corp manufactures, processes, and sells electronics parts, display parts, fine particles, functional sheets, and specialty paper products. It offers clear hard coat films for screen protection of mobile devices; adhesive tapes for circuit boards; and lids for hermetic seal package, as well as electrostatic chuck for LSI and LCD manufacturing process. The company also provides display component materials; and display film products. It offers fine particle materials, such as magnetic toners, non-magnetic toners, full color toners; information printing materials comprising inkjet; and special fiber sheets, including stainless fiber sheets, fluorine fiber sheets. Further, it provides ultra-lightweight printing papers; and insulating papers, conductive papers, absorbing papers.
64GF Score

Get the complete analysis for TSE:3878

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

円781.00
Price
円818.82
GF Value