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. NTT Data Group's
Operating Income
for the
three
months ended in Jun. 2025 was $400 Mil. NTT Data Group's Interest Expense for the
three
months ended in Jun. 2025 was $-189 Mil.
NTT Data Group's interest coverage for the quarter that ended in Jun. 2025 was 2.12.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. NTT Data Group Corp interest coverage is 3.06, which is low.
The historical rank and industry rank for NTT Data Group's Interest Coverage or its related term are showing as below:
NTDTY'
s Interest Coverage Range Over the Past 10 Years
Min: 3.06 Med: 16.22 Max: 34.28
Current: 3.06
NTDTY's Interest Coverage is not ranked
in the Software industry.
Industry Median: 24.67
vs NTDTY: 3.06
NTT Data Group (OTCPK:NTDTY) 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 .
NTT Data Group Interest Coverage Related Terms
NTT Data Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for NTT Data 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.
NTDTY vs FIS, FISV, LDOS: Interest Coverage Comparison
For the Information Technology Services subindustry, NTT Data 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.
NTT Data Group Interest Coverage vs Software Industry
For the Software industry and Technology sector, NTT Data Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where NTT Data 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.
NTT Data Group (NTDTY) has a Interest Coverage of 2.12 as of Jun. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on NTT Data Group and its competitors. This is 87% below median its historical median of 16.22. Over the past decade, NTT Data Group's Interest Coverage has ranged from 3.06 to 34.28.
Is NTT Data Group's Interest Coverage too high?
NTT Data Group's current Interest Coverage of 2.12 is 87% below median its 10-year median of 16.22. Over the past 10 years, this metric has ranged from a low of 3.06 to a high of 34.28. The Software industry median Interest Coverage is 24.67. NTT Data Group's value of 2.12 is 91.4% below this industry median. Overall, NTT Data Group has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does NTT Data Group's Interest Coverage compare to FIS and FISV?
NTT Data Group's Interest Coverage of 2.12 can be compared against companies in the Software industry. The industry median Interest Coverage is 24.67. NTT Data Group's value of 2.12 is 91.4% below this benchmark. Historically, NTT Data Group's own Interest Coverage has ranged from 3.06 to 34.28 over the past decade. While the company's 10-year median is 16.22 vs. the industry median of 24.67, NTT Data Group 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 24.67, based on 1,705 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. NTT Data Group's current Interest Coverage of 2.12 is 91.4% 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 NTT Data Group and its competitors. For the Software industry, the median Interest Coverage is 24.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NTT Data Group's current Interest Coverage is 2.12, which is 87% below median its own 10-year median of 16.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NTT Data Group stock overvalued right now?
NTT Data Group (NTDTY) has a current Interest Coverage of 2.12. The stock's GF Value™ is $16.80, compared to a current price of $24.00 — trading 42.9% above its estimated fair value. The current Interest Coverage is 2.12, which is 87% below median its 10-year median of 16.22 and 91.4% below the Software industry median of 24.67. NTT Data Group's overall GF Score™ is 63/100 with 11 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 NTT Data Group (NTDTY), the current Interest Coverage is 2.12 as of Jun. 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 NTT Data Group (NTDTY) Overvalued in 2026?
Based on GuruFocus' analysis, NTT Data Group stock appears to be overvalued.
The current stock price of $24.00 is trading 42.9% above its estimated GF Value™ of $16.80.
Key valuation signals for NTDTY:
Interest Coverage: 2.12 (87% below median its 10-year median of 16.22)
GF Value™: $16.80 vs. price of $24.00 (42.9% above fair value)
Industry Position: 91.4% below the Software median
No single metric tells the full story. See the NTDTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NTT Data Group Corp provides IT services to a wide range of business fields. It provides solutions in cloud, cybersecurity, data and analytics, Salesforce, SAP, ServiceNow, and application development and management, along with 5G-related services. The company also delivers consulting, sector-specific solutions, business process outsourcing, IT modernization, and managed service offerings.
63GF Score
Get the complete analysis for NTDTY
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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