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SHANONTSE:3976 -2.58%51 Interest Coverage is 228.93 as of Oct. 2025, which is 3111% above its 10-year median of 7.13. GuruFocus rates TSE:3976 with a GF Score™ of 51/100 and a GF Value™ of 円230.27 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,713 Software companies, SHANON ranks better than 80.04% 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. SHANON's
Operating Income
for the
three
months ended in Oct. 2025 was 円54 Mil. SHANON's Interest Expense for the
three
months ended in Oct. 2025 was 円-0 Mil.
SHANON's interest coverage for the quarter that ended in Oct. 2025 was 228.93.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. SHANON Inc has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for SHANON's Interest Coverage or its related term are showing as below:
TSE:3976'
s Interest Coverage Range Over the Past 10 Years
Min: 3.63 Med: 7.13 Max: 376.86
Current: 376.86
TSE:3976's Interest Coverage is ranked better than 80.04% of 1713
companies
in the Software industry
Industry Median: 24.62
vs TSE:3976: 376.86
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 .
SHANON Interest Coverage Related Terms
SHANON Interest Coverage Historical Data
* Premium members only.
The historical data trend for SHANON'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.
TSE:3976 vs UBER, SHOP, CRM: Interest Coverage Comparison
For the Software - Application subindustry, SHANON'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.
SHANON Interest Coverage vs Software Industry
For the Software industry and Technology sector, SHANON's Interest Coverage distribution charts can be found below:
* The bar in red indicates where SHANON'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.
SHANON (TSE:3976) has a Interest Coverage of 228.93 as of Oct. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on SHANON and its competitors. This is 3111% above median its historical median of 7.13. Over the past decade, SHANON's Interest Coverage has ranged from 3.63 to 376.86. According to the industry distribution chart, SHANON ranks #342 out of 1713 companies in the Software industry, placing it in the top 20%.
Is SHANON's Interest Coverage too high?
SHANON's current Interest Coverage of 228.93 is 3111% above median its 10-year median of 7.13. Over the past 10 years, this metric has ranged from a low of 3.63 to a high of 376.86. The Software industry median Interest Coverage is 24.62. SHANON's value of 228.93 is 829.9% above this industry median. Based on the distribution chart, SHANON ranks #342 out of 1713 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, SHANON has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SHANON's Interest Coverage compare to UBER and SHOP?
According to the Software industry distribution chart, SHANON ranks #342 out of 1713 companies for Interest Coverage. This places SHANON in the top 20% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 24.62. SHANON's value of 228.93 is 829.9% above this benchmark. Historically, SHANON's own Interest Coverage has ranged from 3.63 to 376.86 over the past decade. While the company's 10-year median is 7.13 vs. the industry median of 24.62, SHANON 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 24.62, based on 1,713 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. SHANON's current Interest Coverage of 228.93 is 829.9% 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 SHANON and its competitors. For the Software industry, the median Interest Coverage is 24.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SHANON's current Interest Coverage is 228.93, which is 3111% above median its own 10-year median of 7.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SHANON stock overvalued right now?
Based on GuruFocus' analysis, SHANON (TSE:3976) is currently considered Significantly Overvalued. The stock's GF Value™ is 円230.27, compared to a current price of 円567.00 — trading 146.2% above its estimated fair value. The current Interest Coverage is 228.93, which is 3111% above median its 10-year median of 7.13 and 829.9% above the Software industry median of 24.62. SHANON's overall GF Score™ is 51/100 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 SHANON (TSE:3976), the current Interest Coverage is 228.93 as of Oct. 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 SHANON (TSE:3976) Overvalued in 2026?
Based on GuruFocus' analysis, SHANON stock appears to be overvalued.
The current stock price of 円567.00 is trading 146.2% above its estimated GF Value™ of 円230.27.
GuruFocus considers SHANON to be Significantly Overvalued.
Key valuation signals for TSE:3976:
Interest Coverage: 228.93 (3111% above median its 10-year median of 7.13)
GF Value™: 円230.27 vs. price of 円567.00 (146.2% above fair value)
Industry Position: 829.9% above the Software median (#342 of 1713)
No single metric tells the full story. See the TSE:3976 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SHANON Inc provides marketing platform and cloud application. It is engaged in the planning, development, and sale of cloud marketing solutions. It is also engaged in the provision of consulting and outsourcing services related to marketing.
51GF Score
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