Sage Group (The)SGPYY -0.87%84 Interest Coverage is 8.37 as of Mar. 2026, which is 39% below its 10-year median of 13.82. GuruFocus rates SGPYY with a GF Score™ of 84/100 and a GF Value™ of $72.94 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,705 Software companies, Sage Group (The) ranks worse than 67.62% 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. Sage Group (The)'s
Operating Income
for the
six
months ended in Mar. 2026 was $391 Mil. Sage Group (The)'s Interest Expense for the
six
months ended in Mar. 2026 was $-47 Mil.
Sage Group (The)'s interest coverage for the quarter that ended in Mar. 2026 was 8.37.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Sage Group (The)'s Interest Coverage or its related term are showing as below:
SGPYY'
s Interest Coverage Range Over the Past 10 Years
Min: 7.16 Med: 13.82 Max: 17.09
Current: 8.88
SGPYY's Interest Coverage is ranked worse than 67.62% of 1705
companies
in the Software industry
Industry Median: 24.67
vs SGPYY: 8.88
Sage Group (The) (OTCPK:SGPYY) 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 .
Sage Group (The) Interest Coverage Related Terms
Sage Group (The) Interest Coverage Historical Data
* Premium members only.
The historical data trend for Sage Group (The)'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.
SGPYY vs CRM, SHOP, UBER: Interest Coverage Comparison
For the Software - Application subindustry, Sage Group (The)'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.
Sage Group (The) Interest Coverage vs Software Industry
For the Software industry and Technology sector, Sage Group (The)'s Interest Coverage distribution charts can be found below:
* The bar in red indicates where Sage Group (The)'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.
Sage Group (The) (SGPYY) has a Interest Coverage of 8.37 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sage Group (The) and its competitors. This is 39% below median its historical median of 13.82. Over the past decade, Sage Group (The)'s Interest Coverage has ranged from 7.16 to 17.09. According to the industry distribution chart, Sage Group (The) ranks #1153 out of 1705 companies in the Software industry, placing it in the top 67.6%.
Is Sage Group (The)'s Interest Coverage too high?
Sage Group (The)'s current Interest Coverage of 8.37 is 39% below median its 10-year median of 13.82. Over the past 10 years, this metric has ranged from a low of 7.16 to a high of 17.09. The Software industry median Interest Coverage is 24.67. Sage Group (The)'s value of 8.37 is 66.1% below this industry median. Based on the distribution chart, Sage Group (The) ranks #1153 out of 1705 companies in the Software industry, which is below the industry midpoint. Overall, Sage Group (The) has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sage Group (The)'s Interest Coverage compare to CRM and SHOP?
According to the Software industry distribution chart, Sage Group (The) ranks #1153 out of 1705 companies for Interest Coverage. This places Sage Group (The) in the lower half of its industry. The industry median Interest Coverage is 24.67. Sage Group (The)'s value of 8.37 is 66.1% below this benchmark. Historically, Sage Group (The)'s own Interest Coverage has ranged from 7.16 to 17.09 over the past decade. While the company's 10-year median is 13.82 vs. the industry median of 24.67, Sage Group (The) 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. Sage Group (The)'s current Interest Coverage of 8.37 is 66.1% 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 Sage Group (The) 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. Sage Group (The)'s current Interest Coverage is 8.37, which is 39% below median its own 10-year median of 13.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sage Group (The) stock overvalued right now?
Based on GuruFocus' analysis, Sage Group (The) (SGPYY) is currently considered Significantly Undervalued. The stock's GF Value™ is $72.94, compared to a current price of $42.11 — trading 42.3% below its estimated fair value. The current Interest Coverage is 8.37, which is 39% below median its 10-year median of 13.82 and 66.1% below the Software industry median of 24.67. Sage Group (The)'s overall GF Score™ is 84/100 with 4 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 Sage Group (The) (SGPYY), the current Interest Coverage is 8.37 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 Sage Group (The) (SGPYY) Overvalued in 2026?
Based on GuruFocus' analysis, Sage Group (The) stock appears to be undervalued.
The current stock price of $42.11 is trading 42.3% below its estimated GF Value™ of $72.94.
GuruFocus considers Sage Group (The) to be Significantly Undervalued.
Key valuation signals for SGPYY:
Interest Coverage: 8.37 (39% below median its 10-year median of 13.82)
GF Value™: $72.94 vs. price of $42.11 (42.3% below fair value)
Industry Position: 66.1% below the Software median (#1153 of 1705)
No single metric tells the full story. See the SGPYY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Sage Group is a UK-based provider of accounting and enterprise resource planning software, predominantly to customers in the US and Europe. The company was founded in 1981 and historically sold on-premises software products with perpetual software licenses. However, the company is transitioning toward cloud-connected and cloud native products, sold via software-as-a-service contracts. Sage's main cloud-native products include Sage Accounting, for small businesses, and Sage Intacct, which Sage acquired in 2017, for midsize businesses.
84GF Score
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