Nippon Shokubai CoTSE:4114 +0.34%77 Interest Coverage is 6.15 as of Mar. 2026, which is 70% below its 10-year median of 20.75. GuruFocus rates TSE:4114 with a GF Score™ of 77/100 and a GF Value™ of 円1,746.67 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,234 Chemicals companies, Nippon Shokubai Co ranks better than 57.13% 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 Shokubai Co's
Operating Income
for the
three
months ended in Mar. 2026 was 円2,345 Mil. Nippon Shokubai Co's Interest Expense for the
three
months ended in Mar. 2026 was 円-381 Mil.
Nippon Shokubai Co's interest coverage for the quarter that ended in Mar. 2026 was 6.15.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Nippon Shokubai Co's Interest Coverage or its related term are showing as below:
TSE:4114'
s Interest Coverage Range Over the Past 10 Years
Min: 7.28 Med: 20.75 Max: 47.53
Current: 14.93
TSE:4114's Interest Coverage is ranked better than 57.13% of 1234
companies
in the Chemicals industry
Industry Median: 10.18
vs TSE:4114: 14.93
Nippon Shokubai Co (TSE:4114) 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 Shokubai Co Interest Coverage Related Terms
Nippon Shokubai Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nippon Shokubai 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, Nippon Shokubai 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 Shokubai Co Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Shokubai Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nippon Shokubai 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.
Nippon Shokubai Co (TSE:4114) has a Interest Coverage of 6.15 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Shokubai Co and its competitors. This is 70% below median its historical median of 20.75. Over the past decade, Nippon Shokubai Co's Interest Coverage has ranged from 7.28 to 47.53. According to the industry distribution chart, Nippon Shokubai Co ranks #529 out of 1234 companies in the Chemicals industry, placing it in the top 42.9%.
Is Nippon Shokubai Co's Interest Coverage too high?
Nippon Shokubai Co's current Interest Coverage of 6.15 is 70% below median its 10-year median of 20.75. Over the past 10 years, this metric has ranged from a low of 7.28 to a high of 47.53. The Chemicals industry median Interest Coverage is 10.18. Nippon Shokubai Co's value of 6.15 is 39.6% below this industry median. Based on the distribution chart, Nippon Shokubai Co ranks #529 out of 1234 companies in the Chemicals industry, which is above the industry midpoint. Overall, Nippon Shokubai Co has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Shokubai Co's Interest Coverage compare to DOW?
According to the Chemicals industry distribution chart, Nippon Shokubai Co ranks #529 out of 1234 companies for Interest Coverage. This puts Nippon Shokubai Co in the upper half of its industry. The industry median Interest Coverage is 10.18. Nippon Shokubai Co's value of 6.15 is 39.6% below this benchmark. Historically, Nippon Shokubai Co's own Interest Coverage has ranged from 7.28 to 47.53 over the past decade. While the company's 10-year median is 20.75 vs. the industry median of 10.18, Nippon Shokubai 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 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. Nippon Shokubai Co's current Interest Coverage of 6.15 is 39.6% 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 Shokubai 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. Nippon Shokubai Co's current Interest Coverage is 6.15, which is 70% below median its own 10-year median of 20.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Shokubai Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Shokubai Co (TSE:4114) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,746.67, compared to a current price of 円2,075.50 — trading 18.8% above its estimated fair value. The current Interest Coverage is 6.15, which is 70% below median its 10-year median of 20.75 and 39.6% below the Chemicals industry median of 10.18. Nippon Shokubai Co's overall GF Score™ is 77/100 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 Shokubai Co (TSE:4114), the current Interest Coverage is 6.15 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 Shokubai Co (TSE:4114) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Shokubai Co stock appears to be overvalued.
The current stock price of 円2,075.50 is trading 18.8% above its estimated GF Value™ of 円1,746.67.
GuruFocus considers Nippon Shokubai Co to be Modestly Overvalued.
Key valuation signals for TSE:4114:
Interest Coverage: 6.15 (70% below median its 10-year median of 20.75)
GF Value™: 円1,746.67 vs. price of 円2,075.50 (18.8% above fair value)
Industry Position: 39.6% below the Chemicals median (#529 of 1234)
No single metric tells the full story. See the TSE:4114 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Shokubai Co Ltd manufactures and sells a variety of chemicals, catalysts, and chemical-based products. The firm organizes itself into three segments based on product type. The functional chemicals segment, which generates the majority of revenue, sells polymers for concrete mixtures, acrylates used in detergents, and resins for paints and processed adhesive products. The basic chemicals segment sells ethylene oxide and ethylene glycol used in polyester fibers and plastic beverage containers. The environment and catalysts segment sells catalysts used for automotive products and lithium-ion battery production. The majority of revenue comes from Asia.
77GF Score
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