Information Services Group (FRA:ZZG) Interest Coverage: 5.72 (As of Mar. 2026) — 142% Above Median


FRA:ZZG Information Services Group Inc FRA:ZZG
69 GF Score
Price €3.60
GF Value €3.32
Valuation Fairly Valued
! 4 Warning Signs
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What is Information Services Group Interest Coverage?

Information Services Group FRA:ZZG -1.10% 69 Interest Coverage is 5.72 as of Mar. 2026, which is 142% above its 10-year median of 2.36. GuruFocus rates FRA:ZZG with a GF Score™ of 69/100 and a GF Value™ of €3.32 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,704 Software companies, Information Services Group ranks worse than 77.7% 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. Information Services Group's Operating Income for the three months ended in Mar. 2026 was €4.3 Mil. Information Services Group's Interest Expense for the three months ended in Mar. 2026 was €-0.8 Mil. Information Services Group's interest coverage for the quarter that ended in Mar. 2026 was 5.72. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Information Services Group's Interest Coverage or its related term are showing as below:

FRA:ZZG' s Interest Coverage Range Over the Past 10 Years
Min: 0.99   Med: 2.36   Max: 10.79
Current: 4.99


FRA:ZZG's Interest Coverage is ranked worse than
77.7% of 1704 companies
in the Software industry
Industry Median: 24.75 vs FRA:ZZG: 4.99

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Information Services Group  (FRA:ZZG) 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 .


Information Services Group Interest Coverage Related Terms


Information Services Group Interest Coverage Historical Data

* Premium members only.

The historical data trend for Information Services Group'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.

Information Services Group Interest Coverage Chart

Information Services Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.79 9.34 2.36 0.99 4.38

Information Services Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.21 4.46 4.37 5.63 5.72

FRA:ZZG vs CNDT, WYY, UIS: Interest Coverage Comparison

For the Information Technology Services subindustry, Information Services Group'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.


Information Services Group Interest Coverage vs Software Industry

For the Software industry and Technology sector, Information Services Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Information Services Group's Interest Coverage falls into.


FRA:ZZG
69GF Score
Information Services Group Inc FRA:ZZG
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Information Services Group 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Information Services Group's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Information Services Group's Interest Expense was €-3.5 Mil. Its Operating Income was €15.2 Mil. And its Long-Term Debt & Capital Lease Obligation was €58.2 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*15.198/-3.473
=4.38

Information Services Group's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Information Services Group's Interest Expense was €-0.8 Mil. Its Operating Income was €4.3 Mil. And its Long-Term Debt & Capital Lease Obligation was €58.6 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*4.34/-0.759
=5.72

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 5.72 mean?
Information Services Group (FRA:ZZG) has a Interest Coverage of 5.72 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Information Services Group and its competitors. This is 142% above median its historical median of 2.36. Over the past decade, Information Services Group's Interest Coverage has ranged from 0.99 to 10.79. According to the industry distribution chart, Information Services Group ranks #1324 out of 1704 companies in the Software industry, placing it in the top 77.7%.
Is Information Services Group's Interest Coverage too high?
Information Services Group's current Interest Coverage of 5.72 is 142% above median its 10-year median of 2.36. Over the past 10 years, this metric has ranged from a low of 0.99 to a high of 10.79. The Software industry median Interest Coverage is 24.75. Information Services Group's value of 5.72 is 76.9% below this industry median. Based on the distribution chart, Information Services Group ranks #1324 out of 1704 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Information Services Group has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Information Services Group's Interest Coverage compare to CNDT and WYY?
According to the Software industry distribution chart, Information Services Group ranks #1324 out of 1704 companies for Interest Coverage. This places Information Services Group in the lower half of its industry. The industry median Interest Coverage is 24.75. Information Services Group's value of 5.72 is 76.9% below this benchmark. Historically, Information Services Group's own Interest Coverage has ranged from 0.99 to 10.79 over the past decade. While the company's 10-year median is 2.36 vs. the industry median of 24.75, Information Services Group 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. Information Services Group's current Interest Coverage of 5.72 is 76.9% 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 Information Services Group 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. Information Services Group's current Interest Coverage is 5.72, which is 142% above median its own 10-year median of 2.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Information Services Group stock overvalued right now?
Based on GuruFocus' analysis, Information Services Group (FRA:ZZG) is currently considered Fairly Valued. The stock's GF Value™ is €3.32, compared to a current price of €3.60 — trading 8.4% above its estimated fair value. The current Interest Coverage is 5.72, which is 142% above median its 10-year median of 2.36 and 76.9% below the Software industry median of 24.75. Information Services Group's overall GF Score™ is 69/100 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 Information Services Group (FRA:ZZG), the current Interest Coverage is 5.72 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 Information Services Group (FRA:ZZG) Overvalued in 2026?

Based on GuruFocus' analysis, Information Services Group stock appears to be overvalued. The current stock price of €3.60 is trading 8.4% above its estimated GF Value™ of €3.32. GuruFocus considers Information Services Group to be Fairly Valued.

Key valuation signals for FRA:ZZG:

  • Interest Coverage: 5.72 (142% above median its 10-year median of 2.36)
  • GF Value™: €3.32 vs. price of €3.60 (8.4% above fair value)
  • GF Score™: 69/100 with 4 warning signs
  • Industry Position: 76.9% below the Software median (#1324 of 1704)

No single metric tells the full story. See the FRA:ZZG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Information Services Group Business Description

Other Exchanges III:USA
Address 400 Atlantic Street, Stamford, CT, USA, 06901
Information Services Group Inc is an AI-centered technology research and advisory firm providing digital transformation and technology advisory services that help organizations optimize performance, reduce costs, and accelerate innovation. The Company's expertise includes sourcing advisory, cloud and data analytics, managed governance and risk services, network and software advisory, technology strategy and operations design, change management, and market intelligence, serving both private- and public-sector clients globally. It operates in one segment, fact-based sourcing advisory services, and operates principally in the Americas, with generate maximum revenue in Europe and the Asia Pacific.
69GF Score

Get the complete analysis for FRA:ZZG

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€3.60
Price
€3.32
GF Value