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Nippon Denko CoTSE:5563 -1.17%73 Interest Coverage is 14.31 as of Dec. 2025, which is 29% above its 10-year median of 11.08. GuruFocus rates TSE:5563 with a GF Score™ of 73/100 and a GF Value™ of 円308.34 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 457 Steel companies, Nippon Denko Co ranks better than 67.4% 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 Denko Co's
Operating Income
for the
three
months ended in Dec. 2025 was 円2,004 Mil. Nippon Denko Co's Interest Expense for the
three
months ended in Dec. 2025 was 円-140 Mil.
Nippon Denko Co's interest coverage for the quarter that ended in Dec. 2025 was 14.31.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Nippon Denko Co's Interest Coverage or its related term are showing as below:
TSE:5563'
s Interest Coverage Range Over the Past 10 Years
Min: 6.31 Med: 11.08 Max: 53.58
Current: 10.81
TSE:5563's Interest Coverage is ranked better than 67.4% of 457
companies
in the Steel industry
Industry Median: 4.41
vs TSE:5563: 10.81
Nippon Denko Co (TSE:5563) 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 Denko Co Interest Coverage Related Terms
Nippon Denko Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nippon Denko 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:5563 vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Nippon Denko 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 Denko Co Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Nippon Denko Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nippon Denko 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 Denko Co (TSE:5563) has a Interest Coverage of 14.31 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Denko Co and its competitors. This is 29% above median its historical median of 11.08. Over the past decade, Nippon Denko Co's Interest Coverage has ranged from 6.31 to 53.58. According to the industry distribution chart, Nippon Denko Co ranks #149 out of 457 companies in the Steel industry, placing it in the top 32.6%.
Is Nippon Denko Co's Interest Coverage too high?
Nippon Denko Co's current Interest Coverage of 14.31 is 29% above median its 10-year median of 11.08. Over the past 10 years, this metric has ranged from a low of 6.31 to a high of 53.58. The Steel industry median Interest Coverage is 4.41. Nippon Denko Co's value of 14.31 is 224.5% above this industry median. Based on the distribution chart, Nippon Denko Co ranks #149 out of 457 companies in the Steel industry, which is above the industry midpoint. Overall, Nippon Denko Co has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Denko Co's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Nippon Denko Co ranks #149 out of 457 companies for Interest Coverage. This puts Nippon Denko Co in the upper half of its industry. The industry median Interest Coverage is 4.41. Nippon Denko Co's value of 14.31 is 224.5% above this benchmark. Historically, Nippon Denko Co's own Interest Coverage has ranged from 6.31 to 53.58 over the past decade. While the company's 10-year median is 11.08 vs. the industry median of 4.41, Nippon Denko 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 Steel company?
The median Interest Coverage among Steel companies is 4.41, based on 457 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 Denko Co's current Interest Coverage of 14.31 is 224.5% 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 Denko Co and its competitors. For the Steel industry, the median Interest Coverage is 4.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Denko Co's current Interest Coverage is 14.31, which is 29% above median its own 10-year median of 11.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Denko Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Denko Co (TSE:5563) is currently considered Significantly Overvalued. The stock's GF Value™ is 円308.34, compared to a current price of 円422.00 — trading 36.9% above its estimated fair value. The current Interest Coverage is 14.31, which is 29% above median its 10-year median of 11.08 and 224.5% above the Steel industry median of 4.41. Nippon Denko Co's overall GF Score™ is 73/100 with 4 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 Denko Co (TSE:5563), the current Interest Coverage is 14.31 as of Dec. 2025. 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 Denko Co (TSE:5563) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Denko Co stock appears to be overvalued.
The current stock price of 円422.00 is trading 36.9% above its estimated GF Value™ of 円308.34.
GuruFocus considers Nippon Denko Co to be Significantly Overvalued.
Key valuation signals for TSE:5563:
Interest Coverage: 14.31 (29% above median its 10-year median of 11.08)
GF Value™: 円308.34 vs. price of 円422.00 (36.9% above fair value)
Industry Position: 224.5% above the Steel median (#149 of 457)
No single metric tells the full story. See the TSE:5563 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Denko Co Ltd is mainly engaged in the manufacturing and distribution of ferroalloys. In addition, it is also involved in the electric power generation. The company's core business activities are categorized into four segments: Ferroalloys, Functional Materials, Environment, and Other. The company serves a diverse range of markets including power companies, agricultural cooperatives, local governments and companies discharging industrial waste.
73GF Score
Get the complete analysis for TSE:5563
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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