SYSTEMS DESIGN Co (TSE:3766) Debt-to-EBITDA : 0.02 (As of Mar. 2026) — 50% Below Median

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TSE:3766 SYSTEMS DESIGN Co Ltd TSE:3766
65 GF Score
Price 円1,410.00
GF Value 円1,048.25
Valuation Significantly Overvalued
! 2 Warning Signs
View Full Analysis

What is SYSTEMS DESIGN Co Debt-to-EBITDA?

SYSTEMS DESIGN Co TSE:3766 -0.35% 65 Debt-to-EBITDA is 0.02 as of Mar. 2026, which is 50% below its 10-year median of 0.04. GuruFocus rates TSE:3766 with a GF Score™ of 65/100 and a GF Value™ of 円1,048.25 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,723 Software companies, SYSTEMS DESIGN Co ranks better than 94.78% on this metric.

Debt-to-EBITDA measures a company's ability to pay off its debt.

SYSTEMS DESIGN Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was 円6 Mil. SYSTEMS DESIGN Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was 円18 Mil. SYSTEMS DESIGN Co's annualized EBITDA for the quarter that ended in Mar. 2026 was 円1,167 Mil. SYSTEMS DESIGN Co's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 0.02.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for SYSTEMS DESIGN Co's Debt-to-EBITDA or its related term are showing as below:

TSE:3766' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -0.05   Med: 0.04   Max: 1.16
Current: 0.04

During the past 13 years, the highest Debt-to-EBITDA Ratio of SYSTEMS DESIGN Co was 1.16. The lowest was -0.05. And the median was 0.04.

TSE:3766's Debt-to-EBITDA is ranked better than
94.78% of 1723 companies
in the Software industry
Industry Median: 0.98 vs TSE:3766: 0.04

SYSTEMS DESIGN Co  (TSE:3766) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


SYSTEMS DESIGN Co Debt-to-EBITDA Related Terms


SYSTEMS DESIGN Co Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for SYSTEMS DESIGN Co's Debt-to-EBITDA 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.

SYSTEMS DESIGN Co Debt-to-EBITDA Chart

SYSTEMS DESIGN Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.02 0.01 0.01 0.03 0.04

SYSTEMS DESIGN Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Debt-to-EBITDA 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 0.05 0.03 0.04 0.02 0.07

TSE:3766 vs IBM, ACN, FISV: Debt-to-EBITDA Comparison

For the Information Technology Services subindustry, SYSTEMS DESIGN Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.


SYSTEMS DESIGN Co Debt-to-EBITDA vs Software Industry

For the Software industry and Technology sector, SYSTEMS DESIGN Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where SYSTEMS DESIGN Co's Debt-to-EBITDA falls into.


TSE:3766
65GF Score
SYSTEMS DESIGN Co Ltd TSE:3766
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

SYSTEMS DESIGN Co Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

SYSTEMS DESIGN Co's Debt-to-EBITDA for the fiscal year that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(6.431 + 17.749) / 678.948
=0.04

SYSTEMS DESIGN Co's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(6.431 + 17.749) / 1166.712
=0.02

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 0.02 mean?
SYSTEMS DESIGN Co (TSE:3766) has a Debt-to-EBITDA of 0.02 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on SYSTEMS DESIGN Co. This is 50% below median its historical median of 0.04. According to the industry distribution chart, SYSTEMS DESIGN Co ranks #90 out of 1723 companies in the Software industry, placing it in the top 5.2%.
Is SYSTEMS DESIGN Co's Debt-to-EBITDA too high?
SYSTEMS DESIGN Co's current Debt-to-EBITDA of 0.02 is 50% below median its 10-year median of 0.04. The Software industry median Debt-to-EBITDA is 0.98. SYSTEMS DESIGN Co's value of 0.02 is 98% below this industry median. Based on the distribution chart, SYSTEMS DESIGN Co ranks #90 out of 1723 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, SYSTEMS DESIGN Co has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SYSTEMS DESIGN Co's Debt-to-EBITDA compare to IBM and ACN?
According to the Software industry distribution chart, SYSTEMS DESIGN Co ranks #90 out of 1723 companies for Debt-to-EBITDA. This places SYSTEMS DESIGN Co in the top 5% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 0.98. SYSTEMS DESIGN Co's value of 0.02 is 98% below this benchmark. While the company's 10-year median is 0.04 vs. the industry median of 0.98, SYSTEMS DESIGN 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 Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 0.98, based on 1,723 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SYSTEMS DESIGN Co's current Debt-to-EBITDA of 0.02 is 98% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on SYSTEMS DESIGN Co. For the Software industry, the median Debt-to-EBITDA is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SYSTEMS DESIGN Co's current Debt-to-EBITDA is 0.02, which is 50% below median its own 10-year median of 0.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SYSTEMS DESIGN Co stock overvalued right now?
Based on GuruFocus' analysis, SYSTEMS DESIGN Co (TSE:3766) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,048.25, compared to a current price of 円1,410.00 — trading 34.5% above its estimated fair value. The current Debt-to-EBITDA is 0.02, which is 50% below median its 10-year median of 0.04 and 98% below the Software industry median of 0.98. SYSTEMS DESIGN Co's overall GF Score™ is 65/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For SYSTEMS DESIGN Co (TSE:3766), the current Debt-to-EBITDA is 0.02 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 SYSTEMS DESIGN Co (TSE:3766) Overvalued in 2026?

Based on GuruFocus' analysis, SYSTEMS DESIGN Co stock appears to be overvalued. The current stock price of 円1,410.00 is trading 34.5% above its estimated GF Value™ of 円1,048.25. GuruFocus considers SYSTEMS DESIGN Co to be Significantly Overvalued.

Key valuation signals for TSE:3766:

  • Debt-to-EBITDA: 0.02 (50% below median its 10-year median of 0.04)
  • GF Value™: 円1,048.25 vs. price of 円1,410.00 (34.5% above fair value)
  • GF Score™: 65/100 with 2 warning signs
  • Industry Position: 98% below the Software median (#90 of 1723)

No single metric tells the full story. See the TSE:3766 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


SYSTEMS DESIGN Co Business Description

Address 2-1-1 Nishi-Shinjuku, 32nd floor, Shinjuku Mitsui Building, Shinjuku-ku, Tokyo, JPN
SYSTEMS DESIGN Co Ltd is an information technology service provider in Japan. The business of the company includes system development, integration, outsourcing business, system operation, data solution, and product service. The services offered by the company include quality control system, accounting system, a repair service system, and a dealer management system.
65GF Score

Get the complete analysis for TSE:3766

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

円1,410.00
Price
円1,048.25
GF Value