Cegid GroupLTS:0RIY Interest Coverage is 42.58 as of Dec. 2016, which is 140% above its 10-year median of 17.76. The stock has 4 warning signs investors should review.
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. Cegid Group's
Operating Income
for the
six
months ended in Dec. 2016 was €27.12 Mil. Cegid Group's Interest Expense for the
six
months ended in Dec. 2016 was €-0.64 Mil.
Cegid Group's interest coverage for the quarter that ended in Dec. 2016 was 42.58.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Cegid Group's Interest Coverage or its related term are showing as below:
LTS:0RIY'
s Interest Coverage Range Over the Past 10 Years
Min: 5.36 Med: 17.76 Max: 30.83
Current: 28.76
LTS:0RIY's Interest Coverage is not ranked
in the Software industry.
Industry Median: 24.75
vs LTS:0RIY: 28.76
Cegid Group (LTS:0RIY) 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 .
Cegid Group Interest Coverage Related Terms
Cegid Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Cegid 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.
LTS:0RIY vs TYPE, MTLS, TIVO: Interest Coverage Comparison
For the Software - Application subindustry, Cegid 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.
Cegid Group Interest Coverage vs Software Industry
For the Software industry and Technology sector, Cegid Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Cegid Group'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.
Cegid Group (LTS:0RIY) has a Interest Coverage of 42.58 as of Dec. 2016. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cegid Group and its competitors. This is 140% above median its historical median of 17.76. Over the past decade, Cegid Group's Interest Coverage has ranged from 5.36 to 30.83.
Is Cegid Group's Interest Coverage too high?
Cegid Group's current Interest Coverage of 42.58 is 140% above median its 10-year median of 17.76. Over the past 10 years, this metric has ranged from a low of 5.36 to a high of 30.83. The Software industry median Interest Coverage is 24.75. Cegid Group's value of 42.58 is 72% above this industry median.
How does Cegid Group's Interest Coverage compare to TYPE and MTLS?
Cegid Group's Interest Coverage of 42.58 can be compared against companies in the Software industry. The industry median Interest Coverage is 24.75. Cegid Group's value of 42.58 is 72% above this benchmark. Historically, Cegid Group's own Interest Coverage has ranged from 5.36 to 30.83 over the past decade. While the company's 10-year median is 17.76 vs. the industry median of 24.75, Cegid Group has consistently been above 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 1,706 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. Cegid Group's current Interest Coverage of 42.58 is 72% above 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 Cegid 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. Cegid Group's current Interest Coverage is 42.58, which is 140% above median its own 10-year median of 17.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cegid Group stock overvalued right now?
Cegid Group (LTS:0RIY) has a current Interest Coverage of 42.58. The current Interest Coverage is 42.58, which is 140% above median its 10-year median of 17.76 and 72% above the Software industry median of 24.75. 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 Cegid Group (LTS:0RIY), the current Interest Coverage is 42.58 as of Dec. 2016. 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.
Cegid Group SA is engaged in the development, hosting, sell and distribution of business management software and related goods and services. It serves the finance, taxation, human resources, public, retail, manufacturing, services, trade, and accounting profession sectors, as well as startups and small businesses. Geographically business activity of the group is based in France.
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