Flect Co (TSE:4414) Debt-to-EBITDA : 0.27 (As of Mar. 2026) — 60% Below Median

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TSE:4414 Flect Co Ltd TSE:4414
74 GF Score
Price 円1,161.00
GF Value 円2,655.82
Valuation Significantly Undervalued
! 2 Warning Signs
View Full Analysis

What is Flect Co Debt-to-EBITDA?

Flect Co TSE:4414 -7.64% 74 Debt-to-EBITDA is 0.27 as of Mar. 2026, which is 60% below its 10-year median of 0.67. GuruFocus rates TSE:4414 with a GF Score™ of 74/100 and a GF Value™ of 円2,655.82 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,723 Software companies, Flect Co ranks better than 69.36% on this metric.

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

Flect Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was 円68 Mil. Flect Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was 円382 Mil. Flect Co's annualized EBITDA for the quarter that ended in Mar. 2026 was 円1,697 Mil. Flect Co's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 0.27.

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 Flect Co's Debt-to-EBITDA or its related term are showing as below:

TSE:4414' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -6.93   Med: 0.67   Max: 2.17
Current: 0.37

During the past 7 years, the highest Debt-to-EBITDA Ratio of Flect Co was 2.17. The lowest was -6.93. And the median was 0.67.

TSE:4414's Debt-to-EBITDA is ranked better than
69.36% of 1723 companies
in the Software industry
Industry Median: 0.98 vs TSE:4414: 0.37

Flect Co  (TSE:4414) 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.


Flect Co Debt-to-EBITDA Related Terms


Flect Co Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Flect 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.

Flect Co Debt-to-EBITDA Chart

Flect Co Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Debt-to-EBITDA
Get a 7-Day Free Trial 2.17 1.85 0.67 0.44 0.37

Flect Co Quarterly Data
Mar20 Mar21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 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 1.05 0.37 0.34 0.27 1.68

TSE:4414 vs MSFT, PLTR, ORCL: Debt-to-EBITDA Comparison

For the Software - Infrastructure subindustry, Flect 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.


Flect Co Debt-to-EBITDA vs Software Industry

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

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


TSE:4414
74GF Score
Flect Co Ltd TSE:4414
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Flect Co Debt-to-EBITDA Calculation

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

Flect 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
=(67.752 + 382.365) / 1218.099
=0.37

Flect 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
=(67.752 + 382.365) / 1696.7
=0.27

* 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 0.27 mean?
Flect Co (TSE:4414) has a Debt-to-EBITDA of 0.27 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 Flect Co. This is 60% below median its historical median of 0.67. According to the industry distribution chart, Flect Co ranks #528 out of 1723 companies in the Software industry, placing it in the top 30.6%.
Is Flect Co's Debt-to-EBITDA too high?
Flect Co's current Debt-to-EBITDA of 0.27 is 60% below median its 10-year median of 0.67. The Software industry median Debt-to-EBITDA is 0.98. Flect Co's value of 0.27 is 72.4% below this industry median. Based on the distribution chart, Flect Co ranks #528 out of 1723 companies in the Software industry, which is above the industry midpoint. Overall, Flect Co has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Flect Co's Debt-to-EBITDA compare to MSFT and PLTR?
According to the Software industry distribution chart, Flect Co ranks #528 out of 1723 companies for Debt-to-EBITDA. This puts Flect Co in the upper half of its industry. The industry median Debt-to-EBITDA is 0.98. Flect Co's value of 0.27 is 72.4% below this benchmark. While the company's 10-year median is 0.67 vs. the industry median of 0.98, Flect 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. Flect Co's current Debt-to-EBITDA of 0.27 is 72.4% 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 Flect 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. Flect Co's current Debt-to-EBITDA is 0.27, which is 60% below median its own 10-year median of 0.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Flect Co stock overvalued right now?
Based on GuruFocus' analysis, Flect Co (TSE:4414) is currently considered Significantly Undervalued. The stock's GF Value™ is 円2,655.82, compared to a current price of 円1,161.00 — trading 56.3% below its estimated fair value. The current Debt-to-EBITDA is 0.27, which is 60% below median its 10-year median of 0.67 and 72.4% below the Software industry median of 0.98. Flect Co's overall GF Score™ is 74/100 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 Flect Co (TSE:4414), the current Debt-to-EBITDA is 0.27 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 Flect Co (TSE:4414) Overvalued in 2026?

Based on GuruFocus' analysis, Flect Co stock appears to be undervalued. The current stock price of 円1,161.00 is trading 56.3% below its estimated GF Value™ of 円2,655.82. GuruFocus considers Flect Co to be Significantly Undervalued.

Key valuation signals for TSE:4414:

  • Debt-to-EBITDA: 0.27 (60% below median its 10-year median of 0.67)
  • GF Value™: 円2,655.82 vs. price of 円1,161.00 (56.3% below fair value)
  • GF Score™: 74/100 with 2 warning signs
  • Industry Position: 72.4% below the Software median (#528 of 1723)

No single metric tells the full story. See the TSE:4414 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Flect Co Business Description

Address 1-1-1 Shibaura, 11th Floor, Hamamatsucho Building, Minato-ku, Tokyo, JPN, 105-0023
Flect Co Ltd is a multi-cloud integrator that supports companies' digital transformation (DX) with cloud technology and design. The company provides a range of digital solutions for domestic businesses, including IoT, mobility, and AI services across multiple cloud platforms. It also offers e-commerce systems for both corporate clients (B2B) and customer-facing retail (B2C), along with community platforms to enhance customer engagement. Additionally, it supports API, ID, and data integration through its unified platforms. It operates in a single segment, the cloud solutions business.
74GF Score

Get the complete analysis for TSE:4414

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

円1,161.00
Price
円2,655.82
GF Value