Freee KKFREKF -0.84%68 Interest Coverage is 7.48 as of Dec. 2025, which is 7% below its 10-year median of 8.03. GuruFocus rates FREKF with a GF Score™ of 68/100 and a GF Value™ of $31.07 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,706 Software companies, Freee KK ranks better than 57.85% 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. Freee KK's
Operating Income
for the
three
months ended in Dec. 2025 was $1.7 Mil. Freee KK's Interest Expense for the
three
months ended in Dec. 2025 was $-0.2 Mil.
Freee KK's interest coverage for the quarter that ended in Dec. 2025 was 7.48.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Freee KK's Interest Coverage or its related term are showing as below:
FREKF'
s Interest Coverage Range Over the Past 10 Years
Min: 8.03 Med: 8.03 Max: 45.13
Current: 45.13
FREKF's Interest Coverage is ranked better than 57.85% of 1706
companies
in the Software industry
Industry Median: 24.695
vs FREKF: 45.13
Freee KK (OTCPK:FREKF) 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 .
Freee KK Interest Coverage Related Terms
Freee KK Interest Coverage Historical Data
* Premium members only.
The historical data trend for Freee KK'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.
FREKF vs CRM, SHOP, UBER: Interest Coverage Comparison
For the Software - Application subindustry, Freee KK'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.
Freee KK Interest Coverage vs Software Industry
For the Software industry and Technology sector, Freee KK's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Freee KK'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.
Freee KK (FREKF) has a Interest Coverage of 7.48 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Freee KK and its competitors. This is near median its historical median of 8.03. Over the past decade, Freee KK's Interest Coverage has ranged from 8.03 to 45.13. According to the industry distribution chart, Freee KK ranks #719 out of 1706 companies in the Software industry, placing it in the top 42.1%.
Is Freee KK's Interest Coverage too high?
Freee KK's current Interest Coverage of 7.48 is near median its 10-year median of 8.03. Over the past 10 years, this metric has ranged from a low of 8.03 to a high of 45.13. The Software industry median Interest Coverage is 24.70. Freee KK's value of 7.48 is 69.7% below this industry median. Based on the distribution chart, Freee KK ranks #719 out of 1706 companies in the Software industry, which is above the industry midpoint. Overall, Freee KK has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Freee KK's Interest Coverage compare to CRM and SHOP?
According to the Software industry distribution chart, Freee KK ranks #719 out of 1706 companies for Interest Coverage. This puts Freee KK in the upper half of its industry. The industry median Interest Coverage is 24.70. Freee KK's value of 7.48 is 69.7% below this benchmark. Historically, Freee KK's own Interest Coverage has ranged from 8.03 to 45.13 over the past decade. While the company's 10-year median is 8.03 vs. the industry median of 24.70, Freee KK 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. Freee KK's current Interest Coverage of 7.48 is 69.7% 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 Freee KK 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. Freee KK's current Interest Coverage is 7.48, which is near median its own 10-year median of 8.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freee KK stock overvalued right now?
Based on GuruFocus' analysis, Freee KK (FREKF) is currently considered Possible Value Trap. The stock's GF Value™ is $31.07, compared to a current price of $11.85 — trading 61.9% below its estimated fair value. The current Interest Coverage is 7.48, which is near median its 10-year median of 8.03 and 69.7% below the Software industry median of 24.70. Freee KK'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 Freee KK (FREKF), the current Interest Coverage is 7.48 as of Dec. 2025. 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 Freee KK (FREKF) Overvalued in 2026?
Based on GuruFocus' analysis, Freee KK stock appears to be undervalued.
The current stock price of $11.85 is trading 61.9% below its estimated GF Value™ of $31.07.
GuruFocus considers Freee KK to be Possible Value Trap.
Key valuation signals for FREKF:
Interest Coverage: 7.48 (near median its 10-year median of 8.03)
GF Value™: $31.07 vs. price of $11.85 (61.9% below fair value)
Industry Position: 69.7% below the Software median (#719 of 1706)
No single metric tells the full story. See the FREKF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Freee KK is a developer of cloud-based software. Its software products include Cloud Accounting software, Cloud HR Labor software, Cloud ERP for Midsize companies, among others.
68GF Score
Get the complete analysis for FREKF
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FREKF has been successfully added to your 
