Adeka (TSE:4401) Interest Coverage: 11.96 (As of Mar. 2026) — 53% Below Median

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TSE:4401 Adeka Corp TSE:4401
88 GF Score
Price 円4,188.00
GF Value 円3,155.44
Valuation Significantly Overvalued
View Full Analysis

What is Adeka Interest Coverage?

Adeka TSE:4401 +2.12% 88 Interest Coverage is 11.96 as of Mar. 2026, which is 53% below its 10-year median of 25.36. GuruFocus rates TSE:4401 with a GF Score™ of 88/100 and a GF Value™ of 円3,155.44 (Significantly Overvalued). Among 1,232 Chemicals companies, Adeka ranks better than 52.44% 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. Adeka's Operating Income for the three months ended in Mar. 2026 was 円12,308 Mil. Adeka's Interest Expense for the three months ended in Mar. 2026 was 円-1,029 Mil. Adeka's interest coverage for the quarter that ended in Mar. 2026 was 11.96. The higher the ratio, the stronger the company's financial strength is.

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

TSE:4401' s Interest Coverage Range Over the Past 10 Years
Min: 9.52   Med: 25.36   Max: 57.35
Current: 11.6


TSE:4401's Interest Coverage is ranked better than
52.44% of 1232 companies
in the Chemicals industry
Industry Median: 10.13 vs TSE:4401: 11.60

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


Adeka  (TSE:4401) 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 .


Adeka Interest Coverage Related Terms


Adeka Interest Coverage Historical Data

* Premium members only.

The historical data trend for Adeka'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.

Adeka Interest Coverage Chart

Adeka 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 40.56 13.11 9.52 11.90 11.60

Adeka Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 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 11.97 13.28 11.03 10.19 11.96

TSE:4401 vs LIN, SHW, ECL: Interest Coverage Comparison

For the Specialty Chemicals subindustry, Adeka'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.


Adeka Interest Coverage vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Adeka's Interest Coverage distribution charts can be found below:

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


TSE:4401
88GF Score
Adeka Corp TSE:4401
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Adeka 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.

Adeka'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, Adeka's Interest Expense was 円-3,588 Mil. Its Operating Income was 円41,615 Mil. And its Long-Term Debt & Capital Lease Obligation was 円40,179 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*41615/-3588
=11.60

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

Here, for the three months ended in Mar. 2026, Adeka's Interest Expense was 円-1,029 Mil. Its Operating Income was 円12,308 Mil. And its Long-Term Debt & Capital Lease Obligation was 円40,179 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*12308/-1029
=11.96

* 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 11.96 mean?
Adeka (TSE:4401) has a Interest Coverage of 11.96 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Adeka and its competitors. This is 53% below median its historical median of 25.36. Over the past decade, Adeka's Interest Coverage has ranged from 9.52 to 57.35. According to the industry distribution chart, Adeka ranks #586 out of 1232 companies in the Chemicals industry, placing it in the top 47.6%.
Is Adeka's Interest Coverage too high?
Adeka's current Interest Coverage of 11.96 is 53% below median its 10-year median of 25.36. Over the past 10 years, this metric has ranged from a low of 9.52 to a high of 57.35. The Chemicals industry median Interest Coverage is 10.13. Adeka's value of 11.96 is 18.1% above this industry median. Based on the distribution chart, Adeka ranks #586 out of 1232 companies in the Chemicals industry, which is above the industry midpoint. Overall, Adeka has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Adeka's Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, Adeka ranks #586 out of 1232 companies for Interest Coverage. This puts Adeka in the upper half of its industry. The industry median Interest Coverage is 10.13. Adeka's value of 11.96 is 18.1% above this benchmark. Historically, Adeka's own Interest Coverage has ranged from 9.52 to 57.35 over the past decade. While the company's 10-year median is 25.36 vs. the industry median of 10.13, Adeka 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 10.13, based on 1,232 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. Adeka's current Interest Coverage of 11.96 is 18.1% 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 Adeka and its competitors. For the Chemicals industry, the median Interest Coverage is 10.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adeka's current Interest Coverage is 11.96, which is 53% below median its own 10-year median of 25.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adeka stock overvalued right now?
Based on GuruFocus' analysis, Adeka (TSE:4401) is currently considered Significantly Overvalued. The stock's GF Value™ is 円3,155.44, compared to a current price of 円4,188.00 — trading 32.7% above its estimated fair value. The current Interest Coverage is 11.96, which is 53% below median its 10-year median of 25.36 and 18.1% above the Chemicals industry median of 10.13. Adeka's overall GF Score™ is 88/100. 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 Adeka (TSE:4401), the current Interest Coverage is 11.96 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 Adeka (TSE:4401) Overvalued in 2026?

Based on GuruFocus' analysis, Adeka stock appears to be overvalued. The current stock price of 円4,188.00 is trading 32.7% above its estimated GF Value™ of 円3,155.44. GuruFocus considers Adeka to be Significantly Overvalued.

Key valuation signals for TSE:4401:

  • Interest Coverage: 11.96 (53% below median its 10-year median of 25.36)
  • GF Value™: 円3,155.44 vs. price of 円4,188.00 (32.7% above fair value)
  • GF Score™: 88/100
  • Industry Position: 18.1% above the Chemicals median (#586 of 1232)

No single metric tells the full story. See the TSE:4401 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Adeka Business Description

Address 2-35 Higashi-Ogu 7-chome, Arakawa-ku, Tokyo, JPN, 116-8554
Adeka Corp is a Japanese firm engaged in the chemicals, food, and life sciences businesses. The Chemical Business produces additives for polyolefins, stabilizers, plasticizers, flame retardants, semiconductor materials, photoresists, surfactants, lubricants, and cosmetic raw materials. The Food Business manufactures margarines, shortenings, fats, and oils for chocolate and frying, plant-based foods, whipped cream, and mayonnaise. The Life Sciences Business develops agricultural chemicals, pharmaceuticals, veterinary medicines, and functional food ingredients. It generates the majority of its revenue from the Chemical Business segment.
88GF Score

Get the complete analysis for TSE:4401

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

円4,188.00
Price
円3,155.44
GF Value