TOWA Pharmaceutical CoTWAPF -30.88%86 Interest Coverage is 6.23 as of Mar. 2026, which is 89% below its 10-year median of 57.79. GuruFocus rates TWAPF with a GF Score™ of 86/100 and a GF Value™ of $15.06. The stock has 5 warning signs investors should review. Among 684 Drug Manufacturers companies, TOWA Pharmaceutical Co ranks worse than 54.39% 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. TOWA Pharmaceutical Co's
Operating Income
for the
three
months ended in Mar. 2026 was $23 Mil. TOWA Pharmaceutical Co's Interest Expense for the
three
months ended in Mar. 2026 was $-4 Mil.
TOWA Pharmaceutical Co's interest coverage for the quarter that ended in Mar. 2026 was 6.23.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for TOWA Pharmaceutical Co's Interest Coverage or its related term are showing as below:
TWAPF'
s Interest Coverage Range Over the Past 10 Years
Min: 8.68 Med: 57.79 Max: 123.23
Current: 10.22
TWAPF's Interest Coverage is ranked worse than 54.39% of 684
companies
in the Drug Manufacturers industry
Industry Median: 12.765
vs TWAPF: 10.22
TOWA Pharmaceutical Co (OTCPK:TWAPF) 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 .
TOWA Pharmaceutical Co Interest Coverage Related Terms
TOWA Pharmaceutical Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for TOWA Pharmaceutical 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.
For the Drug Manufacturers - Specialty & Generic subindustry, TOWA Pharmaceutical 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.
TOWA Pharmaceutical Co Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, TOWA Pharmaceutical Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where TOWA Pharmaceutical Co's Interest Coverage falls into.
TOWA Pharmaceutical 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.
TOWA Pharmaceutical Co (TWAPF) has a Interest Coverage of 6.23 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on TOWA Pharmaceutical Co and its competitors. This is 89% below median its historical median of 57.79. Over the past decade, TOWA Pharmaceutical Co's Interest Coverage has ranged from 8.68 to 123.23. According to the industry distribution chart, TOWA Pharmaceutical Co ranks #372 out of 684 companies in the Drug Manufacturers industry, placing it in the top 54.4%.
Is TOWA Pharmaceutical Co's Interest Coverage too high?
TOWA Pharmaceutical Co's current Interest Coverage of 6.23 is 89% below median its 10-year median of 57.79. Over the past 10 years, this metric has ranged from a low of 8.68 to a high of 123.23. The Drug Manufacturers industry median Interest Coverage is 12.77. TOWA Pharmaceutical Co's value of 6.23 is 51.2% below this industry median. Based on the distribution chart, TOWA Pharmaceutical Co ranks #372 out of 684 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, TOWA Pharmaceutical Co has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does TOWA Pharmaceutical Co's Interest Coverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, TOWA Pharmaceutical Co ranks #372 out of 684 companies for Interest Coverage. This places TOWA Pharmaceutical Co in the lower half of its industry. The industry median Interest Coverage is 12.77. TOWA Pharmaceutical Co's value of 6.23 is 51.2% below this benchmark. Historically, TOWA Pharmaceutical Co's own Interest Coverage has ranged from 8.68 to 123.23 over the past decade. While the company's 10-year median is 57.79 vs. the industry median of 12.77, TOWA Pharmaceutical 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 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. TOWA Pharmaceutical Co's current Interest Coverage of 6.23 is 51.2% 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 TOWA Pharmaceutical 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. TOWA Pharmaceutical Co's current Interest Coverage is 6.23, which is 89% below median its own 10-year median of 57.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TOWA Pharmaceutical Co stock overvalued right now?
TOWA Pharmaceutical Co (TWAPF) has a current Interest Coverage of 6.23. The stock's GF Value™ is $15.06, compared to a current price of $16.83 — trading 11.8% above its estimated fair value. The current Interest Coverage is 6.23, which is 89% below median its 10-year median of 57.79 and 51.2% below the Drug Manufacturers industry median of 12.77. TOWA Pharmaceutical Co's overall GF Score™ is 86/100 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 TOWA Pharmaceutical Co (TWAPF), the current Interest Coverage is 6.23 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 TOWA Pharmaceutical Co (TWAPF) Overvalued in 2026?
Based on GuruFocus' analysis, TOWA Pharmaceutical Co stock appears to be overvalued.
The current stock price of $16.83 is trading 11.8% above its estimated GF Value™ of $15.06.
Key valuation signals for TWAPF:
Interest Coverage: 6.23 (89% below median its 10-year median of 57.79)
GF Value™: $15.06 vs. price of $16.83 (11.8% above fair value)
Industry Position: 51.2% below the Drug Manufacturers median (#372 of 684)
No single metric tells the full story. See the TWAPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TOWA Pharmaceutical Co Ltd is a Japan based pharmaceutical company engaged in research and development, production, and marketing of generic drugs. It also provides drug consulting services for patients and their families and relatives. It organizes academic seminars for medical professionals and posts articles in journals. It participates in training for pharmacists. The company has three main plants in operation namely Osaka plant, Okayama plant, and Yamagata plant. Towa has offers more than 500 drugs to meet the diverse therapeutic requirements including lifestyle related diseases such as hypertension and diabetes, digestive system diseases, nervous system diseases and allergic diseases, vitamins and antibiotics.
86GF Score
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