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TotvsBSP:TOTS3 -0.46%92 Interest Coverage is 2.24 as of Jun. 2026, which is 49% below its 10-year median of 4.36. GuruFocus rates BSP:TOTS3 with a GF Score™ of 92/100 and a GF Value™ of R$47.36 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,732 Software companies, Totvs ranks worse than 86.26% 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. Totvs's
Operating Income
for the
three
months ended in Jun. 2026 was R$387 Mil. Totvs's Interest Expense for the
three
months ended in Jun. 2026 was R$-173 Mil.
Totvs's interest coverage for the quarter that ended in Jun. 2026 was 2.24.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Totvs's Interest Coverage or its related term are showing as below:
BSP:TOTS3'
s Interest Coverage Range Over the Past 10 Years
Min: 1.58 Med: 4.36 Max: 16.55
Current: 3.01
BSP:TOTS3's Interest Coverage is ranked worse than 86.26% of 1732
companies
in the Software industry
Industry Median: 26.335
vs BSP:TOTS3: 3.01
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 .
Totvs Interest Coverage Related Terms
Totvs Interest Coverage Historical Data
* Premium members only.
The historical data trend for Totvs's Interest Coverage 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.
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.
BSP:TOTS3 vs QH, SHOP, UBER: Interest Coverage Comparison
For the Software - Application subindustry, Totvs'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.
Totvs Interest Coverage vs Software Industry
For the Software industry and Technology sector, Totvs's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Totvs's Interest Coverage 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:
* 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.
Totvs (BSP:TOTS3) has a Interest Coverage of 2.24 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Totvs and its competitors. This is 49% below median its historical median of 4.36. Over the past decade, Totvs' Interest Coverage has ranged from 1.58 to 16.55. According to the industry distribution chart, Totvs ranks #1494 out of 1732 companies in the Software industry, placing it in the top 86.3%.
Is Totvs' Interest Coverage too high?
Totvs' current Interest Coverage of 2.24 is 49% below median its 10-year median of 4.36. Over the past 10 years, this metric has ranged from a low of 1.58 to a high of 16.55. The Software industry median Interest Coverage is 26.34. Totvs' value of 2.24 is 91.5% below this industry median. Based on the distribution chart, Totvs ranks #1494 out of 1732 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Totvs has a GF Score™ of 92/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Totvs' Interest Coverage compare to QH and SHOP?
According to the Software industry distribution chart, Totvs ranks #1494 out of 1732 companies for Interest Coverage. This places Totvs in the lower half of its industry. The industry median Interest Coverage is 26.34. Totvs' value of 2.24 is 91.5% below this benchmark. Historically, Totvs' own Interest Coverage has ranged from 1.58 to 16.55 over the past decade. While the company's 10-year median is 4.36 vs. the industry median of 26.34, Totvs 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 26.34, based on 1,732 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. Totvs's current Interest Coverage of 2.24 is 91.5% 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 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 Totvs and its competitors. For the Software industry, the median Interest Coverage is 26.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Totvs's current Interest Coverage is 2.24, which is 49% below median its own 10-year median of 4.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Totvs stock overvalued right now?
Based on GuruFocus' analysis, Totvs (BSP:TOTS3) is currently considered Significantly Undervalued. The stock's GF Value™ is R$47.36, compared to a current price of R$32.60 — trading 31.2% below its estimated fair value. The current Interest Coverage is 2.24, which is 49% below median its 10-year median of 4.36 and 91.5% below the Software industry median of 26.34. Totvs' overall GF Score™ is 92/100 with 2 warning signs 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 Totvs (BSP:TOTS3), the current Interest Coverage is 2.24 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 Totvs (BSP:TOTS3) Overvalued in 2026?
Based on GuruFocus' analysis, Totvs stock appears to be undervalued.
The current stock price of R$32.60 is trading 31.2% below its estimated GF Value™ of R$47.36.
GuruFocus considers Totvs to be Significantly Undervalued.
Key valuation signals for BSP:TOTS3:
Interest Coverage: 2.24 (49% below median its 10-year median of 4.36)
GF Value™: R$47.36 vs. price of R$32.60 (31.2% below fair value)
Industry Position: 91.5% below the Software median (#1494 of 1732)
No single metric tells the full story. See the BSP:TOTS3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Totvs SA is a provider of information technology solutions to small and medium enterprises in the education, government, healthcare, and retail end markets. The Company's business purpose is to provide business solutions for companies of all sizes, through the development and sale of management software, productivity platforms, collaboration, and data intelligence, digital marketing, as well as the provision of implementation, consulting, advisory, maintenance services, e-commerce, and mobility. The Company operates in three reportable segments, which include the TOTVS Management segment, the RD Station segment, and the TOTVS Techfin segment. The majority of its revenues is generated from the TOTVS Management segment.
92GF Score
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