Showa Chemical Industry Co (TSE:4990) Interest Coverage: 1.50 (As of Mar. 2026) — 87% Below Median

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TSE:4990 Showa Chemical Industry Co Ltd TSE:4990
41 GF Score
Price 円506.00
! 3 Warning Signs
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What is Showa Chemical Industry Co Interest Coverage?

Showa Chemical Industry Co TSE:4990 +0.20% 41 Interest Coverage is 1.50 as of Mar. 2026, which is 87% below its 10-year median of 11.82. GuruFocus rates TSE:4990 with a GF Score™ of 41/100. The stock has 3 warning signs investors should review. Among 1,270 Chemicals companies, Showa Chemical Industry Co ranks better than 55.35% 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. Showa Chemical Industry Co's Operating Income for the three months ended in Mar. 2026 was 円11 Mil. Showa Chemical Industry Co's Interest Expense for the three months ended in Mar. 2026 was 円-7 Mil. Showa Chemical Industry Co's interest coverage for the quarter that ended in Mar. 2026 was 1.50. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Showa Chemical Industry Co's Interest Coverage or its related term are showing as below:

TSE:4990' s Interest Coverage Range Over the Past 10 Years
Min: 7.62   Med: 11.82   Max: 18.77
Current: 15.28


TSE:4990's Interest Coverage is ranked better than
55.35% of 1270 companies
in the Chemicals industry
Industry Median: 11.355 vs TSE:4990: 15.28

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


Showa Chemical Industry Co  (TSE:4990) 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 .


Showa Chemical Industry Co Interest Coverage Related Terms


Showa Chemical Industry Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Showa Chemical Industry 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.

Showa Chemical Industry Co Interest Coverage Chart

Showa Chemical Industry Co 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 7.62 18.77 17.16 11.55 14.49

Showa Chemical Industry Co Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Sep24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 19.42 16.14 19.94 1.50 23.40

TSE:4990 vs LIN, SHW, ECL: Interest Coverage Comparison

For the Specialty Chemicals subindustry, Showa Chemical Industry 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.


Showa Chemical Industry Co Interest Coverage vs Chemicals Industry

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

* The bar in red indicates where Showa Chemical Industry Co's Interest Coverage falls into.


TSE:4990
41GF Score
Showa Chemical Industry Co Ltd TSE:4990
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Showa Chemical Industry 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:

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.

Showa Chemical Industry Co'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, Showa Chemical Industry Co's Interest Expense was 円-31 Mil. Its Operating Income was 円446 Mil. And its Long-Term Debt & Capital Lease Obligation was 円654 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*446.284/-30.789
=14.49

Showa Chemical Industry Co's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Showa Chemical Industry Co's Interest Expense was 円-7 Mil. Its Operating Income was 円11 Mil. And its Long-Term Debt & Capital Lease Obligation was 円654 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*10.818/-7.228
=1.50

* 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 1.50 mean?
Showa Chemical Industry Co (TSE:4990) has a Interest Coverage of 1.50 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Showa Chemical Industry Co and its competitors. This is 87% below median its historical median of 11.82. Over the past decade, Showa Chemical Industry Co's Interest Coverage has ranged from 7.62 to 18.77. According to the industry distribution chart, Showa Chemical Industry Co ranks #567 out of 1270 companies in the Chemicals industry, placing it in the top 44.6%.
Is Showa Chemical Industry Co's Interest Coverage too high?
Showa Chemical Industry Co's current Interest Coverage of 1.50 is 87% below median its 10-year median of 11.82. Over the past 10 years, this metric has ranged from a low of 7.62 to a high of 18.77. The Chemicals industry median Interest Coverage is 11.36. Showa Chemical Industry Co's value of 1.50 is 86.8% below this industry median. Based on the distribution chart, Showa Chemical Industry Co ranks #567 out of 1270 companies in the Chemicals industry, which is above the industry midpoint. Overall, Showa Chemical Industry Co has a GF Score™ of 41/100, reflecting its overall financial health beyond just this single metric.
How does Showa Chemical Industry Co's Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, Showa Chemical Industry Co ranks #567 out of 1270 companies for Interest Coverage. This puts Showa Chemical Industry Co in the upper half of its industry. The industry median Interest Coverage is 11.36. Showa Chemical Industry Co's value of 1.50 is 86.8% below this benchmark. Historically, Showa Chemical Industry Co's own Interest Coverage has ranged from 7.62 to 18.77 over the past decade. While the company's 10-year median is 11.82 vs. the industry median of 11.36, Showa Chemical Industry 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 11.36, based on 1,270 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. Showa Chemical Industry Co's current Interest Coverage of 1.50 is 86.8% 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 Showa Chemical Industry Co and its competitors. For the Chemicals industry, the median Interest Coverage is 11.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Showa Chemical Industry Co's current Interest Coverage is 1.50, which is 87% below median its own 10-year median of 11.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Showa Chemical Industry Co stock overvalued right now?
Showa Chemical Industry Co (TSE:4990) has a current Interest Coverage of 1.50. The current Interest Coverage is 1.50, which is 87% below median its 10-year median of 11.82 and 86.8% below the Chemicals industry median of 11.36. Showa Chemical Industry Co's overall GF Score™ is 41/100 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 Showa Chemical Industry Co (TSE:4990), the current Interest Coverage is 1.50 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.

Showa Chemical Industry Co Business Description

Address 2-23-18, Shimo-meguro, Meguro-ku, Tokyo, JPN, 153-0064
Showa Chemical Industry Co Ltd is engaged in the development and manufacturing of diatomite and perlite. The product range consists of radiolite diatomite filter aids and functional additives, and topco perlite products. Its products are used in a widening spectrum of applications from chemical manufacturing, pool water treatment, pharmaceuticals, incinerator exhaust filtration, the manufacture of building materials, silicone resins, and soil conditioners. It is operating a diatomite plant in Jilin Province, Northeast China.
41GF Score

Get the complete analysis for TSE:4990

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

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