Nippon Chuzo K.K. (TSE:5609) Interest Coverage: 32.25 (As of Mar. 2026) — 35% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSE:5609 Nippon Chuzo K.K. TSE:5609
64 GF Score
Price 円916.00
GF Value 円740.77
Valuation Modestly Overvalued
! 7 Warning Signs
View Full Analysis

What is Nippon Chuzo K.K. Interest Coverage?

Nippon Chuzo K.K. TSE:5609 -1.51% 64 Interest Coverage is 32.25 as of Mar. 2026, which is 35% below its 10-year median of 49.70. GuruFocus rates TSE:5609 with a GF Score™ of 64/100 and a GF Value™ of 円740.77 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 464 Steel companies, Nippon Chuzo K.K. ranks better than 57.76% 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 Chuzo K.K.'s Operating Income for the three months ended in Mar. 2026 was 円387 Mil. Nippon Chuzo K.K.'s Interest Expense for the three months ended in Mar. 2026 was 円-12 Mil. Nippon Chuzo K.K.'s interest coverage for the quarter that ended in Mar. 2026 was 32.25. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Nippon Chuzo K.K.'s Interest Coverage or its related term are showing as below:

TSE:5609' s Interest Coverage Range Over the Past 10 Years
Min: 6.71   Med: 49.7   Max: 127.17
Current: 6.71


TSE:5609's Interest Coverage is ranked better than
57.76% of 464 companies
in the Steel industry
Industry Median: 4.72 vs TSE:5609: 6.71

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


Nippon Chuzo K.K.  (TSE:5609) 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 Chuzo K.K. Interest Coverage Related Terms


Nippon Chuzo K.K. Interest Coverage Historical Data

* Premium members only.

The historical data trend for Nippon Chuzo K.K.'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.

Nippon Chuzo K.K. Interest Coverage Chart

Nippon Chuzo K.K. 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 78.80 37.21 56.00 11.17 9.57

Nippon Chuzo K.K. Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 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 2.55 4.00 0.00 32.25 0.00

TSE:5609 vs NUE, STLD, RS: Interest Coverage Comparison

For the Steel subindustry, Nippon Chuzo K.K.'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 Chuzo K.K. Interest Coverage vs Steel Industry

For the Steel industry and Basic Materials sector, Nippon Chuzo K.K.'s Interest Coverage distribution charts can be found below:

* The bar in red indicates where Nippon Chuzo K.K.'s Interest Coverage falls into.


TSE:5609
64GF Score
Nippon Chuzo K.K. TSE:5609
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Nippon Chuzo K.K. 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.

Nippon Chuzo K.K.'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, Nippon Chuzo K.K.'s Interest Expense was 円-44 Mil. Its Operating Income was 円421 Mil. And its Long-Term Debt & Capital Lease Obligation was 円1,039 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*421/-44
=9.57

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

Here, for the three months ended in Mar. 2026, Nippon Chuzo K.K.'s Interest Expense was 円-12 Mil. Its Operating Income was 円387 Mil. And its Long-Term Debt & Capital Lease Obligation was 円1,039 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*387/-12
=32.25

* 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 32.25 mean?
Nippon Chuzo K.K. (TSE:5609) has a Interest Coverage of 32.25 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon Chuzo K.K. and its competitors. This is 35% below median its historical median of 49.70. Over the past decade, Nippon Chuzo K.K.'s Interest Coverage has ranged from 6.71 to 127.17. According to the industry distribution chart, Nippon Chuzo K.K. ranks #196 out of 464 companies in the Steel industry, placing it in the top 42.2%.
Is Nippon Chuzo K.K.'s Interest Coverage too high?
Nippon Chuzo K.K.'s current Interest Coverage of 32.25 is 35% below median its 10-year median of 49.70. Over the past 10 years, this metric has ranged from a low of 6.71 to a high of 127.17. The Steel industry median Interest Coverage is 4.72. Nippon Chuzo K.K.'s value of 32.25 is 583.3% above this industry median. Based on the distribution chart, Nippon Chuzo K.K. ranks #196 out of 464 companies in the Steel industry, which is above the industry midpoint. Overall, Nippon Chuzo K.K. has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Chuzo K.K.'s Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Nippon Chuzo K.K. ranks #196 out of 464 companies for Interest Coverage. This puts Nippon Chuzo K.K. in the upper half of its industry. The industry median Interest Coverage is 4.72. Nippon Chuzo K.K.'s value of 32.25 is 583.3% above this benchmark. Historically, Nippon Chuzo K.K.'s own Interest Coverage has ranged from 6.71 to 127.17 over the past decade. While the company's 10-year median is 49.70 vs. the industry median of 4.72, Nippon Chuzo K.K. 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 4.72, based on 464 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 Chuzo K.K.'s current Interest Coverage of 32.25 is 583.3% 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 Chuzo K.K. and its competitors. For the Steel industry, the median Interest Coverage is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Chuzo K.K.'s current Interest Coverage is 32.25, which is 35% below median its own 10-year median of 49.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Chuzo K.K. stock overvalued right now?
Based on GuruFocus' analysis, Nippon Chuzo K.K. (TSE:5609) is currently considered Modestly Overvalued. The stock's GF Value™ is 円740.77, compared to a current price of 円916.00 — trading 23.7% above its estimated fair value. The current Interest Coverage is 32.25, which is 35% below median its 10-year median of 49.70 and 583.3% above the Steel industry median of 4.72. Nippon Chuzo K.K.'s overall GF Score™ is 64/100 with 7 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 Chuzo K.K. (TSE:5609), the current Interest Coverage is 32.25 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 Chuzo K.K. (TSE:5609) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon Chuzo K.K. stock appears to be overvalued. The current stock price of 円916.00 is trading 23.7% above its estimated GF Value™ of 円740.77. GuruFocus considers Nippon Chuzo K.K. to be Modestly Overvalued.

Key valuation signals for TSE:5609:

  • Interest Coverage: 32.25 (35% below median its 10-year median of 49.70)
  • GF Value™: 円740.77 vs. price of 円916.00 (23.7% above fair value)
  • GF Score™: 64/100 with 7 warning signs
  • Industry Position: 583.3% above the Steel median (#196 of 464)

No single metric tells the full story. See the TSE:5609 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nippon Chuzo K.K. Business Description

Address Shiraishi town 2-1, Kawasaki, JPN, 210-9567
Nippon Chuzo K.K. is a Japan-based company mainly engaged in the manufacturing and sale of forged products. It operates in three business divisions, including the Material product division that is engaged in the manufacturing of castings and fabricated materials, particularly for casting machinery. The Engineering division designs and manufactures bridge support and expansion device. And the Construction materials division manages fixed column foot construction.
64GF Score

Get the complete analysis for TSE:5609

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

円916.00
Price
円740.77
GF Value