Nankai Chemical CoTSE:4040 -1.55%72 Interest Coverage is 42.04 as of Mar. 2026, which is 115% above its 10-year median of 19.52. GuruFocus rates TSE:4040 with a GF Score™ of 72/100 and a GF Value™ of 円2,863.97 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,234 Chemicals companies, Nankai Chemical Co ranks better than 68.23% 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. Nankai Chemical Co's
Operating Income
for the
six
months ended in Mar. 2026 was 円1,093 Mil. Nankai Chemical Co's Interest Expense for the
six
months ended in Mar. 2026 was 円-26 Mil.
Nankai Chemical Co's interest coverage for the quarter that ended in Mar. 2026 was 42.04.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Nankai Chemical Co's Interest Coverage or its related term are showing as below:
TSE:4040'
s Interest Coverage Range Over the Past 10 Years
Min: 13.65 Med: 19.52 Max: 36.37
Current: 28.33
TSE:4040's Interest Coverage is ranked better than 68.23% of 1234
companies
in the Chemicals industry
Industry Median: 10.18
vs TSE:4040: 28.33
Nankai Chemical Co (TSE:4040) 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 .
Nankai Chemical Co Interest Coverage Related Terms
Nankai Chemical Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nankai Chemical 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.
For the Chemicals subindustry, Nankai Chemical 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.
Nankai Chemical Co Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nankai Chemical Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nankai Chemical Co'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.
Nankai Chemical Co (TSE:4040) has a Interest Coverage of 42.04 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nankai Chemical Co and its competitors. This is 115% above median its historical median of 19.52. Over the past decade, Nankai Chemical Co's Interest Coverage has ranged from 13.65 to 36.37. According to the industry distribution chart, Nankai Chemical Co ranks #392 out of 1234 companies in the Chemicals industry, placing it in the top 31.8%.
Is Nankai Chemical Co's Interest Coverage too high?
Nankai Chemical Co's current Interest Coverage of 42.04 is 115% above median its 10-year median of 19.52. Over the past 10 years, this metric has ranged from a low of 13.65 to a high of 36.37. The Chemicals industry median Interest Coverage is 10.18. Nankai Chemical Co's value of 42.04 is 313% above this industry median. Based on the distribution chart, Nankai Chemical Co ranks #392 out of 1234 companies in the Chemicals industry, which is above the industry midpoint. Overall, Nankai Chemical Co has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nankai Chemical Co's Interest Coverage compare to DOW?
According to the Chemicals industry distribution chart, Nankai Chemical Co ranks #392 out of 1234 companies for Interest Coverage. This puts Nankai Chemical Co in the upper half of its industry. The industry median Interest Coverage is 10.18. Nankai Chemical Co's value of 42.04 is 313% above this benchmark. Historically, Nankai Chemical Co's own Interest Coverage has ranged from 13.65 to 36.37 over the past decade. While the company's 10-year median is 19.52 vs. the industry median of 10.18, Nankai Chemical 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 10.18, 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. Nankai Chemical Co's current Interest Coverage of 42.04 is 313% 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 Nankai Chemical Co 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. Nankai Chemical Co's current Interest Coverage is 42.04, which is 115% above median its own 10-year median of 19.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nankai Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Nankai Chemical Co (TSE:4040) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,863.97, compared to a current price of 円3,485.00 — trading 21.7% above its estimated fair value. The current Interest Coverage is 42.04, which is 115% above median its 10-year median of 19.52 and 313% above the Chemicals industry median of 10.18. Nankai Chemical Co's overall GF Score™ is 72/100 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 Nankai Chemical Co (TSE:4040), the current Interest Coverage is 42.04 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 Nankai Chemical Co (TSE:4040) Overvalued in 2026?
Based on GuruFocus' analysis, Nankai Chemical Co stock appears to be overvalued.
The current stock price of 円3,485.00 is trading 21.7% above its estimated GF Value™ of 円2,863.97.
GuruFocus considers Nankai Chemical Co to be Modestly Overvalued.
Key valuation signals for TSE:4040:
Interest Coverage: 42.04 (115% above median its 10-year median of 19.52)
GF Value™: 円2,863.97 vs. price of 円3,485.00 (21.7% above fair value)
Industry Position: 313% above the Chemicals median (#392 of 1234)
No single metric tells the full story. See the TSE:4040 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nankai Chemical Co Ltd is engaged in the manufacturing and sales of chemical products, agricultural products, quasi-drugs and food additives. collecting, transporting, and recycling of industrial wastes.
72GF Score
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