PDF SolutionsPDFS +5.02%77 Interest Coverage is 5.80 as of Mar. 2026, which is 99% below its 10-year median of 649.04. GuruFocus rates PDFS with a GF Score™ of 77/100 and a GF Value™ of $41.59 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,705 Software companies, PDF Solutions ranks worse than 84.34% 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. PDF Solutions's
Operating Income
for the
three
months ended in Mar. 2026 was $6.3 Mil. PDF Solutions's Interest Expense for the
three
months ended in Mar. 2026 was $-1.1 Mil.
PDF Solutions's interest coverage for the quarter that ended in Mar. 2026 was 5.80.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for PDF Solutions's Interest Coverage or its related term are showing as below:
PDFS'
s Interest Coverage Range Over the Past 10 Years
Min: 0.72 Med: 649.04 Max: No Debt
Current: 3.32
PDFS's Interest Coverage is ranked worse than 84.34% of 1705
companies
in the Software industry
Industry Median: 24.67
vs PDFS: 3.32
PDF Solutions (NAS:PDFS) 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 .
PDF Solutions Interest Coverage Related Terms
PDF Solutions Interest Coverage Historical Data
* Premium members only.
The historical data trend for PDF Solutions'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.
PDFS vs SPSC, EVCM, ALKT: Interest Coverage Comparison
For the Software - Application subindustry, PDF Solutions'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.
PDF Solutions Interest Coverage vs Software Industry
For the Software industry and Technology sector, PDF Solutions's Interest Coverage distribution charts can be found below:
* The bar in red indicates where PDF Solutions'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.
PDF Solutions (PDFS) has a Interest Coverage of 5.80 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on PDF Solutions and its competitors. This is 99% below median its historical median of 649.04. Over the past decade, PDF Solutions' Interest Coverage has ranged from 0.72 to 10,000.00. According to the industry distribution chart, PDF Solutions ranks #1438 out of 1705 companies in the Software industry, placing it in the top 84.3%.
Is PDF Solutions' Interest Coverage too high?
PDF Solutions' current Interest Coverage of 5.80 is 99% below median its 10-year median of 649.04. Over the past 10 years, this metric has ranged from a low of 0.72 to a high of 10,000.00. The Software industry median Interest Coverage is 24.67. PDF Solutions' value of 5.80 is 76.5% below this industry median. Based on the distribution chart, PDF Solutions ranks #1438 out of 1705 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, PDF Solutions has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PDF Solutions' Interest Coverage compare to SPSC and EVCM?
According to the Software industry distribution chart, PDF Solutions ranks #1438 out of 1705 companies for Interest Coverage. This places PDF Solutions in the lower half of its industry. The industry median Interest Coverage is 24.67. PDF Solutions' value of 5.80 is 76.5% below this benchmark. Historically, PDF Solutions' own Interest Coverage has ranged from 0.72 to 10,000.00 over the past decade. While the company's 10-year median is 649.04 vs. the industry median of 24.67, PDF Solutions 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. PDF Solutions's current Interest Coverage of 5.80 is 76.5% 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 PDF Solutions 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. PDF Solutions's current Interest Coverage is 5.80, which is 99% below median its own 10-year median of 649.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PDF Solutions stock overvalued right now?
Based on GuruFocus' analysis, PDF Solutions (PDFS) is currently considered Significantly Overvalued. The stock's GF Value™ is $41.59, compared to a current price of $63.61 — trading 52.9% above its estimated fair value. The current Interest Coverage is 5.80, which is 99% below median its 10-year median of 649.04 and 76.5% below the Software industry median of 24.67. PDF Solutions' overall GF Score™ is 77/100 with 6 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 PDF Solutions (PDFS), the current Interest Coverage is 5.80 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 PDF Solutions (PDFS) Overvalued in 2026?
Based on GuruFocus' analysis, PDF Solutions stock appears to be overvalued.
The current stock price of $63.61 is trading 52.9% above its estimated GF Value™ of $41.59.
GuruFocus considers PDF Solutions to be Significantly Overvalued.
Key valuation signals for PDFS:
Interest Coverage: 5.80 (99% below median its 10-year median of 649.04)
GF Value™: $41.59 vs. price of $63.61 (52.9% above fair value)
Industry Position: 76.5% below the Software median (#1438 of 1705)
No single metric tells the full story. See the PDFS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PDF Solutions Inc provides products and services designed to empower organizations across the semiconductor and electronics ecosystem to connect, collect, manage, and analyze data about design, equipment, manufacturing, and test to improve the yield and quality of their products and operational efficiency. The Company's products, services, and solutions include proprietary software, physical intellectual property (IP) for integrated circuit (IC) designs, electrical measurement hardware tools, methodologies, and professional services.
77GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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