Tokai Soft Co (NGO:4430) Interest Coverage: 82.20 (As of Feb. 2026) — 36% Below Median

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NGO:4430 Tokai Soft Co Ltd NGO:4430
85 GF Score
Price 円943.00
GF Value 円1,113.20
! 1 Warning Sign
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What is Tokai Soft Co Interest Coverage?

Tokai Soft Co NGO:4430 85 Interest Coverage is 82.20 as of Feb. 2026, which is 36% below its 10-year median of 128.43. GuruFocus rates NGO:4430 with a GF Score™ of 85/100 and a GF Value™ of 円1,113.20. The stock has 1 warning sign investors should review. Among 1,714 Software companies, Tokai Soft Co ranks better than 62.6% 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. Tokai Soft Co's Operating Income for the three months ended in Feb. 2026 was 円404 Mil. Tokai Soft Co's Interest Expense for the three months ended in Feb. 2026 was 円-5 Mil. Tokai Soft Co's interest coverage for the quarter that ended in Feb. 2026 was 82.20. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Tokai Soft Co's Interest Coverage or its related term are showing as below:

NGO:4430' s Interest Coverage Range Over the Past 10 Years
Min: 64.16   Med: 128.43   Max: 312.14
Current: 65.04


NGO:4430's Interest Coverage is ranked better than
62.6% of 1714 companies
in the Software industry
Industry Median: 24.61 vs NGO:4430: 65.04

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


Tokai Soft Co  (NGO:4430) 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 .


Tokai Soft Co Interest Coverage Related Terms


Tokai Soft Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Tokai Soft Co'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.

Tokai Soft Co Interest Coverage Chart

Tokai Soft Co Annual Data
Trend May17 May18 May19 May20 May21 May22 May23 May24 May25 May26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 84.84 132.66 197.08 70.41 67.77

Tokai Soft Co Quarterly Data
Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Nov24 May25 Aug25 Nov25 Feb26 May26
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 N/A 59.68 N/A 82.20 53.14

NGO:4430 vs MSFT, ORCL, PLTR: Interest Coverage Comparison

For the Software - Infrastructure subindustry, Tokai Soft Co'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.


Tokai Soft Co Interest Coverage vs Software Industry

For the Software industry and Technology sector, Tokai Soft Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Tokai Soft Co's Interest Coverage falls into.


NGO:4430
85GF Score
Tokai Soft Co Ltd NGO:4430
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tokai Soft Co 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.

Tokai Soft Co's Interest Coverage for the fiscal year that ended in May. 2026 is calculated as

Here, for the fiscal year that ended in May. 2026, Tokai Soft Co's Interest Expense was 円-20 Mil. Its Operating Income was 円1,377 Mil. And its Long-Term Debt & Capital Lease Obligation was 円985 Mil.

Interest Coverage=-1* Operating Income (A: May. 2026 )/Interest Expense (A: May. 2026 )
=-1*1376.781/-20.314
=67.77

Tokai Soft Co's Interest Coverage for the quarter that ended in Feb. 2026 is calculated as

Here, for the three months ended in Feb. 2026, Tokai Soft Co's Interest Expense was 円-5 Mil. Its Operating Income was 円404 Mil. And its Long-Term Debt & Capital Lease Obligation was 円1,124 Mil.

Interest Coverage=-1* Operating Income (Q: Feb. 2026 )/Interest Expense (Q: Feb. 2026 )
=-1*403.997/-4.915
=82.20

* 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 82.20 mean?
Tokai Soft Co (NGO:4430) has a Interest Coverage of 82.20 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tokai Soft Co and its competitors. This is 36% below median its historical median of 128.43. Over the past decade, Tokai Soft Co's Interest Coverage has ranged from 64.16 to 312.14. According to the industry distribution chart, Tokai Soft Co ranks #641 out of 1714 companies in the Software industry, placing it in the top 37.4%.
Is Tokai Soft Co's Interest Coverage too high?
Tokai Soft Co's current Interest Coverage of 82.20 is 36% below median its 10-year median of 128.43. Over the past 10 years, this metric has ranged from a low of 64.16 to a high of 312.14. The Software industry median Interest Coverage is 24.61. Tokai Soft Co's value of 82.20 is 234% above this industry median. Based on the distribution chart, Tokai Soft Co ranks #641 out of 1714 companies in the Software industry, which is above the industry midpoint. Overall, Tokai Soft Co has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Tokai Soft Co's Interest Coverage compare to MSFT and ORCL?
According to the Software industry distribution chart, Tokai Soft Co ranks #641 out of 1714 companies for Interest Coverage. This puts Tokai Soft Co in the upper half of its industry. The industry median Interest Coverage is 24.61. Tokai Soft Co's value of 82.20 is 234% above this benchmark. Historically, Tokai Soft Co's own Interest Coverage has ranged from 64.16 to 312.14 over the past decade. While the company's 10-year median is 128.43 vs. the industry median of 24.61, Tokai Soft Co 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 24.61, based on 1,714 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. Tokai Soft Co's current Interest Coverage of 82.20 is 234% 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 Tokai Soft Co and its competitors. For the Software industry, the median Interest Coverage is 24.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokai Soft Co's current Interest Coverage is 82.20, which is 36% below median its own 10-year median of 128.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokai Soft Co stock overvalued right now?
Tokai Soft Co (NGO:4430) has a current Interest Coverage of 82.20. The stock's GF Value™ is 円1,113.20, compared to a current price of 円943.00 — trading 15.3% below its estimated fair value. The current Interest Coverage is 82.20, which is 36% below median its 10-year median of 128.43 and 234% above the Software industry median of 24.61. Tokai Soft Co's overall GF Score™ is 85/100 with 1 warning sign 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 Tokai Soft Co (NGO:4430), the current Interest Coverage is 82.20 as of Feb. 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 Tokai Soft Co (NGO:4430) Overvalued in 2026?

Based on GuruFocus' analysis, Tokai Soft Co stock appears to be undervalued. The current stock price of 円943.00 is trading 15.3% below its estimated GF Value™ of 円1,113.20.

Key valuation signals for NGO:4430:

  • Interest Coverage: 82.20 (36% below median its 10-year median of 128.43)
  • GF Value™: 円1,113.20 vs. price of 円943.00 (15.3% below fair value)
  • GF Score™: 85/100 with 1 warning sign
  • Industry Position: 234% above the Software median (#641 of 1714)

No single metric tells the full story. See the NGO:4430 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tokai Soft Co Business Description

Other Exchanges 4430:Japan
Address 2-16-1 Noritake, Nakamura-ku, Nagoya, JPN, 451-0043
Tokai Soft Co Ltd provides software solutions. The company is engaged in a wide range of businesses as an engineering company that combines technologies for total system construction, network and solution solutions, and support technologies that provide stable operation.
85GF Score

Get the complete analysis for NGO:4430

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

円943.00
Price
円1,113.20
GF Value