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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.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Nitto Kogyo's Interest Coverage for the quarter that ended in Mar. 2026 was 53.58.
Nitto Kogyo's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.12.
As of today, Nitto Kogyo's Altman Z-Score is 4.28.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Nitto Kogyo has the Financial Strength Rank of 7.
Nitto Kogyo Financial Strength Related Terms
NELEF vs VRT, BE: Financial Strength Comparison
For the Electrical Equipment & Parts subindustry, Nitto Kogyo's Financial Strength, along with its competitors' market caps and Financial Strength 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.
Nitto Kogyo Financial Strength vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nitto Kogyo's Financial Strength distribution charts can be found below:
* The bar in red indicates where Nitto Kogyo's Financial Strength 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:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Nitto Kogyo has a Z-score of 4.28, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 4.28 is strong.
* 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.
Nitto Kogyo (NELEF) has a Financial Strength of 7 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Nitto Kogyo and its competitors. This is 22% below median its historical median of 9.00. Over the past decade, Nitto Kogyo's Financial Strength has ranged from 6.00 to 10.00.
Is Nitto Kogyo's Financial Strength too high?
Nitto Kogyo's current Financial Strength of 7 is 22% below median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 10.00. Overall, Nitto Kogyo has a GF Score™ of 94/100, reflecting its overall financial health beyond just this single metric.
How does Nitto Kogyo's Financial Strength compare to VRT and BE?
Nitto Kogyo's Financial Strength of 7 can be compared against companies in the Industrial Products industry. Historically, Nitto Kogyo's own Financial Strength has ranged from 6.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Industrial Products company?
A good Financial Strength depends on the Industrial Products industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Nitto Kogyo and its competitors. Nitto Kogyo's current Financial Strength is 7, which is 22% below median its own 10-year median of 9.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nitto Kogyo stock overvalued right now?
Nitto Kogyo (NELEF) has a current Financial Strength of 7. The stock's GF Value™ is $20.66, compared to a current price of $21.65 — trading 4.8% above its estimated fair value. The current Financial Strength is 7, which is 22% below median its 10-year median of 9.00. Nitto Kogyo's overall GF Score™ is 94/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Nitto Kogyo (NELEF), the current Financial Strength is 7 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 Nitto Kogyo (NELEF) Overvalued in 2026?
Based on GuruFocus' analysis, Nitto Kogyo stock appears to be overvalued.
The current stock price of $21.65 is trading 4.8% above its estimated GF Value™ of $20.66.
Key valuation signals for NELEF:
Financial Strength: 7 (22% below median its 10-year median of 9.00)
GF Value™: $20.66 vs. price of $21.65 (4.8% above fair value)
No single metric tells the full story. See the NELEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nitto Kogyo Corp is a Japan-based company which provides a wide range of product materials, such as electric circuit panelboard powered high-pressure equipment, such as information and communications-related materials. It is engaged in manufacture and sales of electric and mechanical equipment such as high-voltage power-receiving equipment, panel boards, home panel boards, charging stations, optical junction boxes, metal enclosures, plastic enclosures, racks, breakers, switches, thermal management products, and so on. The company is also in Power Generation and sales business.
94GF Score
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