NTG Clarity NetworksFRA:1NZ -1.84%44 Interest Coverage is 7.00 as of Mar. 2026, which is 21% below its 10-year median of 8.81. GuruFocus rates FRA:1NZ with a GF Score™ of 44/100 and a GF Value™ of €0.78 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,704 Software companies, NTG Clarity Networks ranks better than 50.65% 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. NTG Clarity Networks's
Operating Income
for the
three
months ended in Mar. 2026 was €0.23 Mil. NTG Clarity Networks's Interest Expense for the
three
months ended in Mar. 2026 was €-0.03 Mil.
NTG Clarity Networks's interest coverage for the quarter that ended in Mar. 2026 was 7.00.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for NTG Clarity Networks's Interest Coverage or its related term are showing as below:
FRA:1NZ'
s Interest Coverage Range Over the Past 10 Years
Min: 5.55 Med: 8.81 Max: 32.56
Current: 25.96
FRA:1NZ's Interest Coverage is ranked better than 50.65% of 1704
companies
in the Software industry
Industry Median: 24.75
vs FRA:1NZ: 25.96
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 .
NTG Clarity Networks Interest Coverage Related Terms
NTG Clarity Networks Interest Coverage Historical Data
* Premium members only.
The historical data trend for NTG Clarity Networks'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.
FRA:1NZ vs UBER, SHOP, CRM: Interest Coverage Comparison
For the Software - Application subindustry, NTG Clarity Networks'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.
NTG Clarity Networks Interest Coverage vs Software Industry
For the Software industry and Technology sector, NTG Clarity Networks's Interest Coverage distribution charts can be found below:
* The bar in red indicates where NTG Clarity Networks'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.
NTG Clarity Networks (FRA:1NZ) has a Interest Coverage of 7.00 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on NTG Clarity Networks and its competitors. This is 21% below median its historical median of 8.81. Over the past decade, NTG Clarity Networks' Interest Coverage has ranged from 5.55 to 32.56. According to the industry distribution chart, NTG Clarity Networks ranks #841 out of 1704 companies in the Software industry, placing it in the top 49.4%.
Is NTG Clarity Networks' Interest Coverage too high?
NTG Clarity Networks' current Interest Coverage of 7.00 is 21% below median its 10-year median of 8.81. Over the past 10 years, this metric has ranged from a low of 5.55 to a high of 32.56. The Software industry median Interest Coverage is 24.75. NTG Clarity Networks' value of 7.00 is 71.7% below this industry median. Based on the distribution chart, NTG Clarity Networks ranks #841 out of 1704 companies in the Software industry, which is above the industry midpoint. Overall, NTG Clarity Networks has a GF Score™ of 44/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does NTG Clarity Networks' Interest Coverage compare to UBER and SHOP?
According to the Software industry distribution chart, NTG Clarity Networks ranks #841 out of 1704 companies for Interest Coverage. This puts NTG Clarity Networks in the upper half of its industry. The industry median Interest Coverage is 24.75. NTG Clarity Networks' value of 7.00 is 71.7% below this benchmark. Historically, NTG Clarity Networks' own Interest Coverage has ranged from 5.55 to 32.56 over the past decade. While the company's 10-year median is 8.81 vs. the industry median of 24.75, NTG Clarity Networks 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 24.75, based on 1,704 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. NTG Clarity Networks's current Interest Coverage of 7.00 is 71.7% 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 NTG Clarity Networks and its competitors. For the Software industry, the median Interest Coverage is 24.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NTG Clarity Networks's current Interest Coverage is 7.00, which is 21% below median its own 10-year median of 8.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NTG Clarity Networks stock overvalued right now?
Based on GuruFocus' analysis, NTG Clarity Networks (FRA:1NZ) is currently considered Possible Value Trap. The stock's GF Value™ is €0.78, compared to a current price of €0.43 — trading 45.4% below its estimated fair value. The current Interest Coverage is 7.00, which is 21% below median its 10-year median of 8.81 and 71.7% below the Software industry median of 24.75. NTG Clarity Networks' overall GF Score™ is 44/100 with 4 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 NTG Clarity Networks (FRA:1NZ), the current Interest Coverage is 7.00 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 NTG Clarity Networks (FRA:1NZ) Overvalued in 2026?
Based on GuruFocus' analysis, NTG Clarity Networks stock appears to be undervalued.
The current stock price of €0.43 is trading 45.4% below its estimated GF Value™ of €0.78.
GuruFocus considers NTG Clarity Networks to be Possible Value Trap.
Key valuation signals for FRA:1NZ:
Interest Coverage: 7.00 (21% below median its 10-year median of 8.81)
GF Value™: €0.78 vs. price of €0.43 (45.4% below fair value)
Industry Position: 71.7% below the Software median (#841 of 1704)
No single metric tells the full story. See the FRA:1NZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NTG Clarity Networks Inc provides digital transformation solutions, software development outsourcing, and software products. The group provides engineering, Information Technology, networking services, and develops niche software products for telecommunications and utilities. It also expanded into the financial and government sectors, providing technical resources and products to assist customers with projects that include digital transformation. The company has three operating segments: NTG Canada, NTG Egypt, and NTG Saudi. The company generates the majority of its revenue from the NTG Canada segment.
44GF Score
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