New Japan Chemical CoTSE:4406 +0.50%61 Interest Coverage is 5.44 as of Mar. 2026, which is 45% below its 10-year median of 9.97. GuruFocus rates TSE:4406 with a GF Score™ of 61/100 and a GF Value™ of 円199.66 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,231 Chemicals companies, New Japan Chemical Co ranks worse than 54.1% 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. New Japan Chemical Co's
Operating Income
for the
six
months ended in Mar. 2026 was 円234 Mil. New Japan Chemical Co's Interest Expense for the
six
months ended in Mar. 2026 was 円-43 Mil.
New Japan Chemical Co's interest coverage for the quarter that ended in Mar. 2026 was 5.44.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for New Japan Chemical Co's Interest Coverage or its related term are showing as below:
TSE:4406'
s Interest Coverage Range Over the Past 10 Years
Min: 6.86 Med: 9.97 Max: 27.32
Current: 8.35
TSE:4406's Interest Coverage is ranked worse than 54.1% of 1231
companies
in the Chemicals industry
Industry Median: 10.15
vs TSE:4406: 8.35
New Japan Chemical Co (TSE:4406) 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 .
New Japan Chemical Co Interest Coverage Related Terms
New Japan Chemical Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for New Japan 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.
TSE:4406 vs LIN, SHW, ECL: Interest Coverage Comparison
For the Specialty Chemicals subindustry, New Japan 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.
New Japan Chemical Co Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, New Japan Chemical Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where New Japan Chemical Co's Interest Coverage falls into.
New Japan Chemical 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:
* 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.
New Japan Chemical Co (TSE:4406) has a Interest Coverage of 5.44 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on New Japan Chemical Co and its competitors. This is 45% below median its historical median of 9.97. Over the past decade, New Japan Chemical Co's Interest Coverage has ranged from 6.86 to 27.32. According to the industry distribution chart, New Japan Chemical Co ranks #666 out of 1231 companies in the Chemicals industry, placing it in the top 54.1%.
Is New Japan Chemical Co's Interest Coverage too high?
New Japan Chemical Co's current Interest Coverage of 5.44 is 45% below median its 10-year median of 9.97. Over the past 10 years, this metric has ranged from a low of 6.86 to a high of 27.32. The Chemicals industry median Interest Coverage is 10.15. New Japan Chemical Co's value of 5.44 is 46.4% below this industry median. Based on the distribution chart, New Japan Chemical Co ranks #666 out of 1231 companies in the Chemicals industry, which is below the industry midpoint. Overall, New Japan Chemical Co has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does New Japan Chemical Co's Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, New Japan Chemical Co ranks #666 out of 1231 companies for Interest Coverage. This places New Japan Chemical Co in the lower half of its industry. The industry median Interest Coverage is 10.15. New Japan Chemical Co's value of 5.44 is 46.4% below this benchmark. Historically, New Japan Chemical Co's own Interest Coverage has ranged from 6.86 to 27.32 over the past decade. While the company's 10-year median is 9.97 vs. the industry median of 10.15, New Japan Chemical 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 10.15, based on 1,231 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. New Japan Chemical Co's current Interest Coverage of 5.44 is 46.4% 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 New Japan Chemical Co and its competitors. For the Chemicals industry, the median Interest Coverage is 10.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Japan Chemical Co's current Interest Coverage is 5.44, which is 45% below median its own 10-year median of 9.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Japan Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, New Japan Chemical Co (TSE:4406) is currently considered Fairly Valued. The stock's GF Value™ is 円199.66, compared to a current price of 円202.00 — trading 1.2% above its estimated fair value. The current Interest Coverage is 5.44, which is 45% below median its 10-year median of 9.97 and 46.4% below the Chemicals industry median of 10.15. New Japan Chemical Co's overall GF Score™ is 61/100 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 New Japan Chemical Co (TSE:4406), the current Interest Coverage is 5.44 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 New Japan Chemical Co (TSE:4406) Overvalued in 2026?
Based on GuruFocus' analysis, New Japan Chemical Co stock appears to be overvalued.
The current stock price of 円202.00 is trading 1.2% above its estimated GF Value™ of 円199.66.
GuruFocus considers New Japan Chemical Co to be Fairly Valued.
Key valuation signals for TSE:4406:
Interest Coverage: 5.44 (45% below median its 10-year median of 9.97)
GF Value™: 円199.66 vs. price of 円202.00 (1.2% above fair value)
Industry Position: 46.4% below the Chemicals median (#666 of 1231)
No single metric tells the full story. See the TSE:4406 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Japan Chemical Co Ltd is a Japan-based company engages in the production and sale of oleo-chemical and chemical products. It offers fatty acids, glycerol, higher alcohols, unsaturated alcohols, surfactants, plasticizers, functional products, and resin additives.
61GF Score
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