NECNIPNF +2.57%79 Interest Coverage is 20.07 as of Mar. 2026, which is 100% above its 10-year median of 10.04. GuruFocus rates NIPNF with a GF Score™ of 79/100 and a GF Value™ of $17.90 (Significantly Overvalued). Among 1,706 Software companies, NEC ranks worse than 54.1% 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. NEC's
Operating Income
for the
three
months ended in Mar. 2026 was $1,101 Mil. NEC's Interest Expense for the
three
months ended in Mar. 2026 was $-55 Mil.
NEC's interest coverage for the quarter that ended in Mar. 2026 was 20.07.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for NEC's Interest Coverage or its related term are showing as below:
NIPNF'
s Interest Coverage Range Over the Past 10 Years
Min: 2.01 Med: 10.04 Max: 19.81
Current: 19.81
NIPNF's Interest Coverage is ranked worse than 54.1% of 1706
companies
in the Software industry
Industry Median: 24.695
vs NIPNF: 19.81
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 .
NEC Interest Coverage Related Terms
NEC Interest Coverage Historical Data
* Premium members only.
The historical data trend for NEC'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.
NIPNF vs IBM, ACN, FISV: Interest Coverage Comparison
For the Information Technology Services subindustry, NEC'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.
NEC Interest Coverage vs Software Industry
For the Software industry and Technology sector, NEC's Interest Coverage distribution charts can be found below:
* The bar in red indicates where NEC'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.
NEC (NIPNF) has a Interest Coverage of 20.07 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on NEC and its competitors. This is 100% above median its historical median of 10.04. Over the past decade, NEC's Interest Coverage has ranged from 2.01 to 19.81. According to the industry distribution chart, NEC ranks #923 out of 1706 companies in the Software industry, placing it in the top 54.1%.
Is NEC's Interest Coverage too high?
NEC's current Interest Coverage of 20.07 is 100% above median its 10-year median of 10.04. Over the past 10 years, this metric has ranged from a low of 2.01 to a high of 19.81. The Software industry median Interest Coverage is 24.70. NEC's value of 20.07 is 18.7% below this industry median. Based on the distribution chart, NEC ranks #923 out of 1706 companies in the Software industry, which is below the industry midpoint. Overall, NEC has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NEC's Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, NEC ranks #923 out of 1706 companies for Interest Coverage. This places NEC in the lower half of its industry. The industry median Interest Coverage is 24.70. NEC's value of 20.07 is 18.7% below this benchmark. Historically, NEC's own Interest Coverage has ranged from 2.01 to 19.81 over the past decade. While the company's 10-year median is 10.04 vs. the industry median of 24.70, NEC 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. NEC's current Interest Coverage of 20.07 is 18.7% 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 NEC 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. NEC's current Interest Coverage is 20.07, which is 100% above median its own 10-year median of 10.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NEC stock overvalued right now?
Based on GuruFocus' analysis, NEC (NIPNF) is currently considered Significantly Overvalued. The stock's GF Value™ is $17.90, compared to a current price of $23.75 — trading 32.7% above its estimated fair value. The current Interest Coverage is 20.07, which is 100% above median its 10-year median of 10.04 and 18.7% below the Software industry median of 24.70. NEC's overall GF Score™ is 79/100. 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 NEC (NIPNF), the current Interest Coverage is 20.07 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 NEC (NIPNF) Overvalued in 2026?
Based on GuruFocus' analysis, NEC stock appears to be overvalued.
The current stock price of $23.75 is trading 32.7% above its estimated GF Value™ of $17.90.
GuruFocus considers NEC to be Significantly Overvalued.
Key valuation signals for NIPNF:
Interest Coverage: 20.07 (100% above median its 10-year median of 10.04)
GF Value™: $17.90 vs. price of $23.75 (32.7% above fair value)
Industry Position: 18.7% below the Software median (#923 of 1706)
No single metric tells the full story. See the NIPNF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NEC Corp is engaged in IT services, networks, social infrastructure, and solutions. The company operates through three segments: IT Services, Social Infrastructure, and Others. The IT Services segment provides system integration, consulting, maintenance, outsourcing, cloud services, system equipment, and software services. The Social Infrastructure segment offers network infrastructure, including core networks, mobile base stations, optical transmission systems, and marine systems, along with telecom software, OSS/BSS solutions, aerospace and defense system integration, and maintenance. The Others segment covers the development, manufacturing, and sales of system equipment. It generates the majority of its revenue from the IT Services segment.
79GF Score
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