Locaweb Servicos de InternetBSP:LWSA3 -0.96%82 Interest Coverage is 31.34 as of Mar. 2026, which is 1074% above its 10-year median of 2.67. GuruFocus rates BSP:LWSA3 with a GF Score™ of 82/100 and a GF Value™ of R$5.02 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,705 Software companies, Locaweb Servicos de Internet ranks worse than 58650.97% 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. Locaweb Servicos de Internet's
Operating Income
for the
three
months ended in Mar. 2026 was R$52 Mil. Locaweb Servicos de Internet's Interest Expense for the
three
months ended in Mar. 2026 was R$-2 Mil.
Locaweb Servicos de Internet's interest coverage for the quarter that ended in Mar. 2026 was 31.34.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Locaweb Servicos de Internet's Interest Coverage or its related term are showing as below:
BSP:LWSA3's Interest Coverage is not ranked *
in the Software industry.
Industry Median: 24.78 * Ranked among companies with meaningful Interest Coverage only.
Locaweb Servicos de Internet (BSP:LWSA3) 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 .
Locaweb Servicos de Internet Interest Coverage Related Terms
Locaweb Servicos de Internet Interest Coverage Historical Data
* 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.
Locaweb Servicos de Internet Interest Coverage Chart
BSP:LWSA3 vs MSFT, ORCL, PLTR: Interest Coverage Comparison
For the Software - Infrastructure subindustry, Locaweb Servicos de Internet'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.
Locaweb Servicos de Internet Interest Coverage vs Software Industry
For the Software industry and Technology sector, Locaweb Servicos de Internet's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Locaweb Servicos de Internet's Interest Coverage falls into.
Locaweb Servicos de Internet 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.
Locaweb Servicos de Internet (BSP:LWSA3) has a Interest Coverage of 31.34 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Locaweb Servicos de Internet and its competitors. This is 1074% above median its historical median of 2.67. According to the industry distribution chart, Locaweb Servicos de Internet ranks #999999 out of 1705 companies in the Software industry.
Is Locaweb Servicos de Internet's Interest Coverage too high?
Locaweb Servicos de Internet's current Interest Coverage of 31.34 is 1074% above median its 10-year median of 2.67. The Software industry median Interest Coverage is 24.78. Locaweb Servicos de Internet's value of 31.34 is 26.5% above this industry median. Based on the distribution chart, Locaweb Servicos de Internet ranks #999999 out of 1705 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Locaweb Servicos de Internet has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Locaweb Servicos de Internet's Interest Coverage compare to MSFT and ORCL?
According to the Software industry distribution chart, Locaweb Servicos de Internet ranks #999999 out of 1705 companies for Interest Coverage. This places Locaweb Servicos de Internet in the lower half of its industry. The industry median Interest Coverage is 24.78. Locaweb Servicos de Internet's value of 31.34 is 26.5% above this benchmark. While the company's 10-year median is 2.67 vs. the industry median of 24.78, Locaweb Servicos de Internet 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.78, based on 1,705 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. Locaweb Servicos de Internet's current Interest Coverage of 31.34 is 26.5% 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 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 Locaweb Servicos de Internet and its competitors. For the Software industry, the median Interest Coverage is 24.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Locaweb Servicos de Internet's current Interest Coverage is 31.34, which is 1074% above median its own 10-year median of 2.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Locaweb Servicos de Internet stock overvalued right now?
Based on GuruFocus' analysis, Locaweb Servicos de Internet (BSP:LWSA3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$5.02, compared to a current price of R$4.11 — trading 18.1% below its estimated fair value. The current Interest Coverage is 31.34, which is 1074% above median its 10-year median of 2.67 and 26.5% above the Software industry median of 24.78. Locaweb Servicos de Internet's overall GF Score™ is 82/100 with 1 warning sign 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 Locaweb Servicos de Internet (BSP:LWSA3), the current Interest Coverage is 31.34 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 Locaweb Servicos de Internet (BSP:LWSA3) Overvalued in 2026?
Based on GuruFocus' analysis, Locaweb Servicos de Internet stock appears to be undervalued.
The current stock price of R$4.11 is trading 18.1% below its estimated GF Value™ of R$5.02.
GuruFocus considers Locaweb Servicos de Internet to be Modestly Undervalued.
Key valuation signals for BSP:LWSA3:
Interest Coverage: 31.34 (1074% above median its 10-year median of 2.67)
GF Value™: R$5.02 vs. price of R$4.11 (18.1% below fair value)
Industry Position: 26.5% above the Software median (#999999 of 1705)
No single metric tells the full story. See the BSP:LWSA3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Locaweb Servicos de Internet SA is a Brazil-based software company. It offers digital marketing, cloud, and accommodation services such as website hosting, WordPress hosting, domain registration, and email services. The operations of the Company and its subsidiaries are divided into two operating segments: Be Online and SaaS, and Commerce. The Be Online and SaaS segment includes hosting and cloud services, as well as those called SaaS (email, marketing intelligence software, and site builder). The Commerce segment includes e-commerce solutions, platforms, marketplace integration, and sub-acquiring business services. It generates the majority of its revenue from the Commerce segment.
82GF Score
Get the complete analysis for BSP:LWSA3
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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