Formula Systems (1985)FRA:FSY -1.12%68 Interest Coverage is 19.67 as of Mar. 2026, which is 126% above its 10-year median of 8.71. GuruFocus rates FRA:FSY with a GF Score™ of 68/100 and a GF Value™ of €100.75 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,706 Software companies, Formula Systems (1985) ranks worse than 76.67% 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. Formula Systems (1985)'s
Operating Income
for the
three
months ended in Mar. 2026 was €71 Mil. Formula Systems (1985)'s Interest Expense for the
three
months ended in Mar. 2026 was €-4 Mil.
Formula Systems (1985)'s interest coverage for the quarter that ended in Mar. 2026 was 19.67.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Formula Systems (1985)'s Interest Coverage or its related term are showing as below:
FRA:FSY'
s Interest Coverage Range Over the Past 10 Years
Min: 5.26 Med: 8.71 Max: 12.61
Current: 5.26
FRA:FSY's Interest Coverage is ranked worse than 76.67% of 1706
companies
in the Software industry
Industry Median: 24.695
vs FRA:FSY: 5.26
Formula Systems (1985) (FRA:FSY) 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 .
Formula Systems (1985) Interest Coverage Related Terms
Formula Systems (1985) Interest Coverage Historical Data
* Premium members only.
The historical data trend for Formula Systems (1985)'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:FSY vs IBM, ACN, FISV: Interest Coverage Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'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.
Formula Systems (1985) Interest Coverage vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s Interest Coverage distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s Interest Coverage falls into.
Formula Systems (1985) 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.
Formula Systems (1985) (FRA:FSY) has a Interest Coverage of 19.67 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Formula Systems (1985) and its competitors. This is 126% above median its historical median of 8.71. Over the past decade, Formula Systems (1985)'s Interest Coverage has ranged from 5.26 to 12.61. According to the industry distribution chart, Formula Systems (1985) ranks #1308 out of 1706 companies in the Software industry, placing it in the top 76.7%.
Is Formula Systems (1985)'s Interest Coverage too high?
Formula Systems (1985)'s current Interest Coverage of 19.67 is 126% above median its 10-year median of 8.71. Over the past 10 years, this metric has ranged from a low of 5.26 to a high of 12.61. The Software industry median Interest Coverage is 24.70. Formula Systems (1985)'s value of 19.67 is 20.3% below this industry median. Based on the distribution chart, Formula Systems (1985) ranks #1308 out of 1706 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Formula Systems (1985) has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #1308 out of 1706 companies for Interest Coverage. This places Formula Systems (1985) in the lower half of its industry. The industry median Interest Coverage is 24.70. Formula Systems (1985)'s value of 19.67 is 20.3% below this benchmark. Historically, Formula Systems (1985)'s own Interest Coverage has ranged from 5.26 to 12.61 over the past decade. While the company's 10-year median is 8.71 vs. the industry median of 24.70, Formula Systems (1985) 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 24.70, based on 1,706 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. Formula Systems (1985)'s current Interest Coverage of 19.67 is 20.3% 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 Formula Systems (1985) and its competitors. For the Software industry, the median Interest Coverage is 24.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current Interest Coverage is 19.67, which is 126% above median its own 10-year median of 8.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formula Systems (1985) stock overvalued right now?
Based on GuruFocus' analysis, Formula Systems (1985) (FRA:FSY) is currently considered Modestly Undervalued. The stock's GF Value™ is €100.75, compared to a current price of €88.00 — trading 12.7% below its estimated fair value. The current Interest Coverage is 19.67, which is 126% above median its 10-year median of 8.71 and 20.3% below the Software industry median of 24.70. Formula Systems (1985)'s overall GF Score™ is 68/100 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 Formula Systems (1985) (FRA:FSY), the current Interest Coverage is 19.67 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 Formula Systems (1985) (FRA:FSY) Overvalued in 2026?
Based on GuruFocus' analysis, Formula Systems (1985) stock appears to be undervalued.
The current stock price of €88.00 is trading 12.7% below its estimated GF Value™ of €100.75.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
Interest Coverage: 19.67 (126% above median its 10-year median of 8.71)
GF Value™: €100.75 vs. price of €88.00 (12.7% below fair value)
Industry Position: 20.3% below the Software median (#1308 of 1706)
No single metric tells the full story. See the FRA:FSY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formula Systems (1985) Ltd is an information technology company that is principally engaged through its directly and indirectly held investees in providing software consulting services, selling and marketing computer-based business solutions and hardware products from a wide range of domestic and international manufacturers, as well as developing proprietary software solutions. It delivers solutions in Israel and in numerous countries to customers with complex IT services needs. It designs and implements IT solutions and software systems that improve the productivity of customers' existing IT assets, enable them to effectively manage their operations and reduce their business risks in the face of changing business environments.
68GF Score
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