SystemsKAR:SYS +0.25%96 Interest Coverage is 24.10 as of Mar. 2026, which is 33% below its 10-year median of 36.15. GuruFocus rates KAR:SYS with a GF Score™ of 96/100 and a GF Value™ of ₨156.63 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,704 Software companies, Systems ranks better than 59.51% 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. Systems's
Operating Income
for the
three
months ended in Mar. 2026 was ₨3,116 Mil. Systems's Interest Expense for the
three
months ended in Mar. 2026 was ₨-129 Mil.
Systems's interest coverage for the quarter that ended in Mar. 2026 was 24.10.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Systems Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Systems's Interest Coverage or its related term are showing as below:
KAR:SYS'
s Interest Coverage Range Over the Past 10 Years
Min: 10.37 Med: 36.15 Max: 190.28
Current: 50.48
KAR:SYS's Interest Coverage is ranked better than 59.51% of 1704
companies
in the Software industry
Industry Median: 24.75
vs KAR:SYS: 50.48
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 .
Systems Interest Coverage Related Terms
Systems Interest Coverage Historical Data
* Premium members only.
The historical data trend for Systems'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.
KAR:SYS vs UBER, SHOP, CRM: Interest Coverage Comparison
For the Software - Application subindustry, Systems'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.
Systems Interest Coverage vs Software Industry
For the Software industry and Technology sector, Systems's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Systems'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.
Systems (KAR:SYS) has a Interest Coverage of 24.10 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Systems and its competitors. This is 33% below median its historical median of 36.15. Over the past decade, Systems' Interest Coverage has ranged from 10.37 to 190.28. According to the industry distribution chart, Systems ranks #690 out of 1704 companies in the Software industry, placing it in the top 40.5%.
Is Systems' Interest Coverage too high?
Systems' current Interest Coverage of 24.10 is 33% below median its 10-year median of 36.15. Over the past 10 years, this metric has ranged from a low of 10.37 to a high of 190.28. The Software industry median Interest Coverage is 24.75. Systems' value of 24.10 is 2.6% below this industry median. Based on the distribution chart, Systems ranks #690 out of 1704 companies in the Software industry, which is above the industry midpoint. Overall, Systems has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Systems' Interest Coverage compare to UBER and SHOP?
According to the Software industry distribution chart, Systems ranks #690 out of 1704 companies for Interest Coverage. This puts Systems in the upper half of its industry. The industry median Interest Coverage is 24.75. Systems' value of 24.10 is 2.6% below this benchmark. Historically, Systems' own Interest Coverage has ranged from 10.37 to 190.28 over the past decade. While the company's 10-year median is 36.15 vs. the industry median of 24.75, Systems 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. Systems's current Interest Coverage of 24.10 is 2.6% 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 Systems 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. Systems's current Interest Coverage is 24.10, which is 33% below median its own 10-year median of 36.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Systems stock overvalued right now?
Based on GuruFocus' analysis, Systems (KAR:SYS) is currently considered Fairly Valued. The stock's GF Value™ is ₨156.63, compared to a current price of ₨149.41 — trading 4.6% below its estimated fair value. The current Interest Coverage is 24.10, which is 33% below median its 10-year median of 36.15 and 2.6% below the Software industry median of 24.75. Systems' overall GF Score™ is 96/100 with 3 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 Systems (KAR:SYS), the current Interest Coverage is 24.10 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 Systems (KAR:SYS) Overvalued in 2026?
Based on GuruFocus' analysis, Systems stock appears to be undervalued.
The current stock price of ₨149.41 is trading 4.6% below its estimated GF Value™ of ₨156.63.
GuruFocus considers Systems to be Fairly Valued.
Key valuation signals for KAR:SYS:
Interest Coverage: 24.10 (33% below median its 10-year median of 36.15)
GF Value™: ₨156.63 vs. price of ₨149.41 (4.6% below fair value)
Industry Position: 2.6% below the Software median (#690 of 1704)
No single metric tells the full story. See the KAR:SYS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Systems Ltd is principally engaged in the business of software development, trading of software, hardware and business process outsourcing services. Its four primary segments are Banking Financial Services & Insurance includes activities related to banking, financial services, and insurance; Retail & CPG (Consumer Packaged Goods) covers retail operations and consumer goods; Telco (Telecommunications) involves telecommunications services and technologies; Technology includes technology-related solutions , products and services and; Others: It catch-all category may not include any remaining segments above of which majority of revenue comes from BFSI. It has presence in North America, Europe, Middle East & Africa, APAC, Pakistan of which majority of revenue comes from Middle East & Africa.
96GF Score
Get the complete analysis for KAR:SYS
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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