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Sophia Holdings CoTSE:6942 52 Debt-to-Equity is 0.64 as of Jun. 2026, which is 73% below its 10-year median of 2.41. GuruFocus rates TSE:6942 with a GF Score™ of 52/100 and a GF Value™ of 円929.47 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,247 Software companies, Sophia Holdings Co ranks worse than 75.92% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Sophia Holdings Co's Debt-to-Equity or its related term are showing as below:
TSE:6942'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.7 Med: 2.41 Max: 25.69
Current: 0.64
During the past 13 years, the highest Debt-to-Equity Ratio of Sophia Holdings Co was 25.69. The lowest was 0.70. And the median was 2.41.
TSE:6942's Debt-to-Equity is ranked worse than 75.92% of 2247
companies
in the Software industry
Industry Median: 0.2
vs TSE:6942: 0.64
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Sophia Holdings Co Debt-to-Equity Related Terms
Sophia Holdings Co Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Sophia Holdings Co's Debt-to-Equity 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.
TSE:6942 vs IBM, ACN, CTSH: Debt-to-Equity Comparison
For the Information Technology Services subindustry, Sophia Holdings Co's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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.
Sophia Holdings Co Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, Sophia Holdings Co's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Sophia Holdings Co's Debt-to-Equity falls into.
* 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.
Sophia Holdings Co (TSE:6942) has a Debt-to-Equity of 0.64 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Sophia Holdings Co and its competitors. This is 73% below median its historical median of 2.41. Over the past decade, Sophia Holdings Co's Debt-to-Equity has ranged from 0.70 to 25.69. According to the industry distribution chart, Sophia Holdings Co ranks #1706 out of 2247 companies in the Software industry, placing it in the top 75.9%.
Is Sophia Holdings Co's Debt-to-Equity too high?
Sophia Holdings Co's current Debt-to-Equity of 0.64 is 73% below median its 10-year median of 2.41. Over the past 10 years, this metric has ranged from a low of 0.70 to a high of 25.69. The Software industry median Debt-to-Equity is 0.20. Sophia Holdings Co's value of 0.64 is 220% above this industry median. Based on the distribution chart, Sophia Holdings Co ranks #1706 out of 2247 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Sophia Holdings Co has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sophia Holdings Co's Debt-to-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Sophia Holdings Co ranks #1706 out of 2247 companies for Debt-to-Equity. This places Sophia Holdings Co in the lower half of its industry. The industry median Debt-to-Equity is 0.20. Sophia Holdings Co's value of 0.64 is 220% above this benchmark. Historically, Sophia Holdings Co's own Debt-to-Equity has ranged from 0.70 to 25.69 over the past decade. While the company's 10-year median is 2.41 vs. the industry median of 0.20, Sophia Holdings Co 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 Debt-to-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.20, based on 2,247 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sophia Holdings Co's current Debt-to-Equity of 0.64 is 220% 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 Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Sophia Holdings Co and its competitors. For the Software industry, the median Debt-to-Equity is 0.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sophia Holdings Co's current Debt-to-Equity is 0.64, which is 73% below median its own 10-year median of 2.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sophia Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Sophia Holdings Co (TSE:6942) is currently considered Significantly Overvalued. The stock's GF Value™ is 円929.47, compared to a current price of 円1,443.00 — trading 55.2% above its estimated fair value. The current Debt-to-Equity is 0.64, which is 73% below median its 10-year median of 2.41 and 220% above the Software industry median of 0.20. Sophia Holdings Co's overall GF Score™ is 52/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Sophia Holdings Co (TSE:6942), the current Debt-to-Equity is 0.64 as of Jun. 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 Sophia Holdings Co (TSE:6942) Overvalued in 2026?
Based on GuruFocus' analysis, Sophia Holdings Co stock appears to be overvalued.
The current stock price of 円1,443.00 is trading 55.2% above its estimated GF Value™ of 円929.47.
GuruFocus considers Sophia Holdings Co to be Significantly Overvalued.
Key valuation signals for TSE:6942:
Debt-to-Equity: 0.64 (73% below median its 10-year median of 2.41)
GF Value™: 円929.47 vs. price of 円1,443.00 (55.2% above fair value)
Industry Position: 220% above the Software median (#1706 of 2247)
No single metric tells the full story. See the TSE:6942 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sophia Holdings Co Ltd is a Japan-based holding company. Through its subsidiaries, the company is engaged in the planning, design, development, business contracting and consultation of web services. It offers solutions across data center, hardware, software, contents and business categories. The group is also involved in the communication, healthcare, real estate, security and hosting businesses.
52GF Score
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