Nippon Shinyaku CoTSE:4516 +0.30%91 Interest Coverage is 68.78 as of Mar. 2026, which is 74% below its 10-year median of 260.68. GuruFocus rates TSE:4516 with a GF Score™ of 91/100 and a GF Value™ of 円4,785.64 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 684 Drug Manufacturers companies, Nippon Shinyaku Co ranks better than 86.11% 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 Shinyaku Co's
Operating Income
for the
three
months ended in Mar. 2026 was 円3,164 Mil. Nippon Shinyaku Co's Interest Expense for the
three
months ended in Mar. 2026 was 円-46 Mil.
Nippon Shinyaku Co's interest coverage for the quarter that ended in Mar. 2026 was 68.78.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Nippon Shinyaku Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Nippon Shinyaku Co's Interest Coverage or its related term are showing as below:
TSE:4516'
s Interest Coverage Range Over the Past 10 Years
Min: 101.21 Med: 260.68 Max: 10835.5
Current: 213.84
TSE:4516's Interest Coverage is ranked better than 86.11% of 684
companies
in the Drug Manufacturers industry
Industry Median: 12.765
vs TSE:4516: 213.84
Nippon Shinyaku Co (TSE:4516) 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 Shinyaku Co Interest Coverage Related Terms
Nippon Shinyaku Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nippon Shinyaku 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:4516 vs ZTS, UTHR: Interest Coverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Nippon Shinyaku 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 Shinyaku Co Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Nippon Shinyaku Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nippon Shinyaku 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 Shinyaku Co (TSE:4516) has a Interest Coverage of 68.78 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Shinyaku Co and its competitors. This is 74% below median its historical median of 260.68. Over the past decade, Nippon Shinyaku Co's Interest Coverage has ranged from 101.21 to 10,835.50. According to the industry distribution chart, Nippon Shinyaku Co ranks #95 out of 684 companies in the Drug Manufacturers industry, placing it in the top 13.9%.
Is Nippon Shinyaku Co's Interest Coverage too high?
Nippon Shinyaku Co's current Interest Coverage of 68.78 is 74% below median its 10-year median of 260.68. Over the past 10 years, this metric has ranged from a low of 101.21 to a high of 10,835.50. The Drug Manufacturers industry median Interest Coverage is 12.77. Nippon Shinyaku Co's value of 68.78 is 438.8% above this industry median. Based on the distribution chart, Nippon Shinyaku Co ranks #95 out of 684 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Shinyaku Co has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Shinyaku Co's Interest Coverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Nippon Shinyaku Co ranks #95 out of 684 companies for Interest Coverage. This places Nippon Shinyaku Co in the top 14% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 12.77. Nippon Shinyaku Co's value of 68.78 is 438.8% above this benchmark. Historically, Nippon Shinyaku Co's own Interest Coverage has ranged from 101.21 to 10,835.50 over the past decade. While the company's 10-year median is 260.68 vs. the industry median of 12.77, Nippon Shinyaku 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.77, based on 684 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 Shinyaku Co's current Interest Coverage of 68.78 is 438.8% 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 Nippon Shinyaku Co and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Shinyaku Co's current Interest Coverage is 68.78, which is 74% below median its own 10-year median of 260.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Shinyaku Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Shinyaku Co (TSE:4516) is currently considered Modestly Undervalued. The stock's GF Value™ is 円4,785.64, compared to a current price of 円4,049.00 — trading 15.4% below its estimated fair value. The current Interest Coverage is 68.78, which is 74% below median its 10-year median of 260.68 and 438.8% above the Drug Manufacturers industry median of 12.77. Nippon Shinyaku Co's overall GF Score™ is 91/100 with 3 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 Shinyaku Co (TSE:4516), the current Interest Coverage is 68.78 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 Shinyaku Co (TSE:4516) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Shinyaku Co stock appears to be undervalued.
The current stock price of 円4,049.00 is trading 15.4% below its estimated GF Value™ of 円4,785.64.
GuruFocus considers Nippon Shinyaku Co to be Modestly Undervalued.
Key valuation signals for TSE:4516:
Interest Coverage: 68.78 (74% below median its 10-year median of 260.68)
GF Value™: 円4,785.64 vs. price of 円4,049.00 (15.4% below fair value)
Industry Position: 438.8% above the Drug Manufacturers median (#95 of 684)
No single metric tells the full story. See the TSE:4516 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Shinyaku Co Ltd is engaged in the pharmaceuticals and functional food businesses. The Pharmaceuticals Business develops and sells treatments for urological disorders, blood cancer, rare and intractable diseases, and gynecological conditions. The Functional Food Business produces and sells health food ingredients, quality-stabilizing preservatives, protein preparations, and supplements. It generates the majority of its revenue from the Pharmaceuticals segment.
91GF Score
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