Awa Paper & Technological Co (TSE:3896) Interest Coverage: 3.49 (As of Mar. 2026) — 50% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:3896 Awa Paper & Technological Co Inc TSE:3896
56 GF Score
Price 円366.00
GF Value 円499.08
Valuation Modestly Undervalued
! 7 Warning Signs
View Full Analysis

What is Awa Paper & Technological Co Interest Coverage?

Awa Paper & Technological Co TSE:3896 -0.27% 56 Interest Coverage is 3.49 as of Mar. 2026, which is 50% below its 10-year median of 7.04. GuruFocus rates TSE:3896 with a GF Score™ of 56/100 and a GF Value™ of 円499.08 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 183 Forest Products companies, Awa Paper & Technological Co ranks worse than 96.17% 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. Awa Paper & Technological Co's Operating Income for the six months ended in Mar. 2026 was 円285 Mil. Awa Paper & Technological Co's Interest Expense for the six months ended in Mar. 2026 was 円-82 Mil. Awa Paper & Technological Co's interest coverage for the quarter that ended in Mar. 2026 was 3.49. 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. Awa Paper & Technological Co Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Awa Paper & Technological Co's Interest Coverage or its related term are showing as below:

TSE:3896' s Interest Coverage Range Over the Past 10 Years
Min: 0.37   Med: 7.04   Max: 11.28
Current: 0.37


TSE:3896's Interest Coverage is ranked worse than
96.17% of 183 companies
in the Forest Products industry
Industry Median: 4.11 vs TSE:3896: 0.37

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


Awa Paper & Technological Co  (TSE:3896) 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 .


Awa Paper & Technological Co Interest Coverage Related Terms


Awa Paper & Technological Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Awa Paper & Technological 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.

Awa Paper & Technological Co Interest Coverage Chart

Awa Paper & Technological 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 7.68 11.28 7.04 4.35 0.37

Awa Paper & Technological Co 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 8.07 0.00 7.71 0.00 3.49

Awa Paper & Technological Co Interest Coverage Competitor Comparison

For the Paper & Paper Products subindustry, Awa Paper & Technological 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.


Awa Paper & Technological Co Interest Coverage vs Forest Products Industry

For the Forest Products industry and Basic Materials sector, Awa Paper & Technological Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Awa Paper & Technological Co's Interest Coverage falls into.


TSE:3896
56GF Score
Awa Paper & Technological Co Inc TSE:3896
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Awa Paper & Technological 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.

Awa Paper & Technological 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, Awa Paper & Technological Co's Interest Expense was 円-157 Mil. Its Operating Income was 円59 Mil. And its Long-Term Debt & Capital Lease Obligation was 円9,689 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*58.717/-157.018
=0.37

Awa Paper & Technological Co's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the six months ended in Mar. 2026, Awa Paper & Technological Co's Interest Expense was 円-82 Mil. Its Operating Income was 円285 Mil. And its Long-Term Debt & Capital Lease Obligation was 円9,689 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*284.517/-81.595
=3.49

* 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 3.49 mean?
Awa Paper & Technological Co (TSE:3896) has a Interest Coverage of 3.49 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Awa Paper & Technological Co and its competitors. This is 50% below median its historical median of 7.04. Over the past decade, Awa Paper & Technological Co's Interest Coverage has ranged from 0.37 to 11.28. According to the industry distribution chart, Awa Paper & Technological Co ranks #176 out of 183 companies in the Forest Products industry, placing it in the top 96.2%.
Is Awa Paper & Technological Co's Interest Coverage too high?
Awa Paper & Technological Co's current Interest Coverage of 3.49 is 50% below median its 10-year median of 7.04. Over the past 10 years, this metric has ranged from a low of 0.37 to a high of 11.28. The Forest Products industry median Interest Coverage is 4.11. Awa Paper & Technological Co's value of 3.49 is 15.1% below this industry median. Based on the distribution chart, Awa Paper & Technological Co ranks #176 out of 183 companies in the Forest Products industry, which is in the bottom quartile relative to peers. Overall, Awa Paper & Technological Co has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Awa Paper & Technological Co's Interest Coverage compare to competitors?
According to the Forest Products industry distribution chart, Awa Paper & Technological Co ranks #176 out of 183 companies for Interest Coverage. This places Awa Paper & Technological Co in the lower half of its industry. The industry median Interest Coverage is 4.11. Awa Paper & Technological Co's value of 3.49 is 15.1% below this benchmark. Historically, Awa Paper & Technological Co's own Interest Coverage has ranged from 0.37 to 11.28 over the past decade. While the company's 10-year median is 7.04 vs. the industry median of 4.11, Awa Paper & Technological 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 4.11, 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. Awa Paper & Technological Co's current Interest Coverage of 3.49 is 15.1% 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 Awa Paper & Technological Co and its competitors. For the Forest Products industry, the median Interest Coverage is 4.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Awa Paper & Technological Co's current Interest Coverage is 3.49, which is 50% below median its own 10-year median of 7.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Awa Paper & Technological Co stock overvalued right now?
Based on GuruFocus' analysis, Awa Paper & Technological Co (TSE:3896) is currently considered Modestly Undervalued. The stock's GF Value™ is 円499.08, compared to a current price of 円366.00 — trading 26.7% below its estimated fair value. The current Interest Coverage is 3.49, which is 50% below median its 10-year median of 7.04 and 15.1% below the Forest Products industry median of 4.11. Awa Paper & Technological Co's overall GF Score™ is 56/100 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 Awa Paper & Technological Co (TSE:3896), the current Interest Coverage is 3.49 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 Awa Paper & Technological Co (TSE:3896) Overvalued in 2026?

Based on GuruFocus' analysis, Awa Paper & Technological Co stock appears to be undervalued. The current stock price of 円366.00 is trading 26.7% below its estimated GF Value™ of 円499.08. GuruFocus considers Awa Paper & Technological Co to be Modestly Undervalued.

Key valuation signals for TSE:3896:

  • Interest Coverage: 3.49 (50% below median its 10-year median of 7.04)
  • GF Value™: 円499.08 vs. price of 円366.00 (26.7% below fair value)
  • GF Score™: 56/100 with 7 warning signs
  • Industry Position: 15.1% below the Forest Products median (#176 of 183)

No single metric tells the full story. See the TSE:3896 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Awa Paper & Technological Co Business Description

Address 3-10-18, Minamiyasocho, Tokushima-shi, Tokushima, JPN, 770-0005
Awa Paper & Technological Co Inc is engaged in manufacturing and selling papers. The company provides air filter media, polyolefin sheets, base papers, cabin filter media, heat radiation sheets and fins, carbon fiber reinforced plastics, ceramic sheets, and cushion papers, as well as graphitic, carbon fiber, activated carbon fiber, and activated carbon.
56GF Score

Get the complete analysis for TSE:3896

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

円366.00
Price
円499.08
GF Value