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User LocalTSE:3984 +0.72%88 Interest Coverage is 362.68 as of Mar. 2026, which is 96% below its 10-year median of 10,000.00. GuruFocus rates TSE:3984 with a GF Score™ of 88/100 and a GF Value™ of 円2,652.30 (Significantly Undervalued). Among 1,727 Software companies, User Local ranks better than 84.89% 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. User Local's
Operating Income
for the
three
months ended in Mar. 2026 was 円672 Mil. User Local's Interest Expense for the
three
months ended in Mar. 2026 was 円-2 Mil.
User Local's interest coverage for the quarter that ended in Mar. 2026 was 362.68.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
User Local Inc has no debt.
(1) 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.
The historical rank and industry rank for User Local's Interest Coverage or its related term are showing as below:
TSE:3984'
s Interest Coverage Range Over the Past 10 Years
Min: 65.03 Med: No Debt Max: No Debt
Current: 1185.82
TSE:3984's Interest Coverage is ranked better than 84.89% of 1727
companies
in the Software industry
Industry Median: 26.06
vs TSE:3984: 1185.82
User Local (TSE:3984) 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 .
User Local Interest Coverage Related Terms
User Local Interest Coverage Historical Data
* Premium members only.
The historical data trend for User Local'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:3984 vs IBM, ACN, FISV: Interest Coverage Comparison
For the Information Technology Services subindustry, User Local'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.
User Local Interest Coverage vs Software Industry
For the Software industry and Technology sector, User Local's Interest Coverage distribution charts can be found below:
* The bar in red indicates where User Local'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.
User Local (TSE:3984) has a Interest Coverage of 362.68 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on User Local and its competitors. This is 96% below median its historical median of 10,000.00. Over the past decade, User Local's Interest Coverage has ranged from 65.03 to 10,000.00. According to the industry distribution chart, User Local ranks #261 out of 1727 companies in the Software industry, placing it in the top 15.1%.
Is User Local's Interest Coverage too high?
User Local's current Interest Coverage of 362.68 is 96% below median its 10-year median of 10,000.00. Over the past 10 years, this metric has ranged from a low of 65.03 to a high of 10,000.00. The Software industry median Interest Coverage is 26.06. User Local's value of 362.68 is 1291.7% above this industry median. Based on the distribution chart, User Local ranks #261 out of 1727 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, User Local has a GF Score™ of 88/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does User Local's Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, User Local ranks #261 out of 1727 companies for Interest Coverage. This places User Local in the top 15% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 26.06. User Local's value of 362.68 is 1291.7% above this benchmark. Historically, User Local's own Interest Coverage has ranged from 65.03 to 10,000.00 over the past decade. While the company's 10-year median is 10,000.00 vs. the industry median of 26.06, User Local 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 26.06, based on 1,727 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. User Local's current Interest Coverage of 362.68 is 1291.7% 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 User Local and its competitors. For the Software industry, the median Interest Coverage is 26.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. User Local's current Interest Coverage is 362.68, which is 96% below median its own 10-year median of 10,000.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is User Local stock overvalued right now?
Based on GuruFocus' analysis, User Local (TSE:3984) is currently considered Significantly Undervalued. The stock's GF Value™ is 円2,652.30, compared to a current price of 円1,535.00 — trading 42.1% below its estimated fair value. The current Interest Coverage is 362.68, which is 96% below median its 10-year median of 10,000.00 and 1291.7% above the Software industry median of 26.06. User Local's overall GF Score™ is 88/100. 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 User Local (TSE:3984), the current Interest Coverage is 362.68 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 User Local (TSE:3984) Overvalued in 2026?
Based on GuruFocus' analysis, User Local stock appears to be undervalued.
The current stock price of 円1,535.00 is trading 42.1% below its estimated GF Value™ of 円2,652.30.
GuruFocus considers User Local to be Significantly Undervalued.
Key valuation signals for TSE:3984:
Interest Coverage: 362.68 (96% below median its 10-year median of 10,000.00)
GF Value™: 円2,652.30 vs. price of 円1,535.00 (42.1% below fair value)
Industry Position: 1291.7% above the Software median (#261 of 1727)
No single metric tells the full story. See the TSE:3984 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
User Local Inc is engaged in the research and development of big data analysis system, web marketing support tool, offering media analysis tool, and managing artificial intelligence chat bot.
88GF Score
Get the complete analysis for TSE:3984
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