SYS Holdings Co (TSE:3988) Interest Coverage: 74.89 (As of Jan. 2026) — 26% Below Median

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TSE:3988 SYS Holdings Co Ltd TSE:3988
90 GF Score
Price 円550.00
GF Value 円694.94
Valuation Modestly Undervalued
! 2 Warning Signs
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What is SYS Holdings Co Interest Coverage?

SYS Holdings Co TSE:3988 -1.79% 90 Interest Coverage is 74.89 as of Jan. 2026, which is 26% below its 10-year median of 101.18. GuruFocus rates TSE:3988 with a GF Score™ of 90/100 and a GF Value™ of 円694.94 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,728 Software companies, SYS Holdings Co ranks better than 54.8% 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. SYS Holdings Co's Operating Income for the three months ended in Jan. 2026 was 円227 Mil. SYS Holdings Co's Interest Expense for the three months ended in Jan. 2026 was 円-3 Mil. SYS Holdings Co's interest coverage for the quarter that ended in Jan. 2026 was 74.89. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for SYS Holdings Co's Interest Coverage or its related term are showing as below:

TSE:3988' s Interest Coverage Range Over the Past 10 Years
Min: 37.52   Med: 101.18   Max: 214.1
Current: 37.52


TSE:3988's Interest Coverage is ranked better than
54.8% of 1728 companies
in the Software industry
Industry Median: 25.535 vs TSE:3988: 37.52

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


SYS Holdings Co  (TSE:3988) 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 .


SYS Holdings Co Interest Coverage Related Terms


SYS Holdings Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for SYS Holdings Co'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.

SYS Holdings Co Interest Coverage Chart

SYS Holdings Co Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 178.93 214.10 67.01 93.43 55.11

SYS Holdings Co Quarterly Data
Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 43.47 40.78 20.35 74.89 30.66

TSE:3988 vs IBM, ACN, FISV: Interest Coverage Comparison

For the Information Technology Services subindustry, SYS Holdings Co'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.


SYS Holdings Co Interest Coverage vs Software Industry

For the Software industry and Technology sector, SYS Holdings Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where SYS Holdings Co's Interest Coverage falls into.


TSE:3988
90GF Score
SYS Holdings Co Ltd TSE:3988
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

SYS Holdings Co Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

SYS Holdings Co's Interest Coverage for the fiscal year that ended in Jul. 2025 is calculated as

Here, for the fiscal year that ended in Jul. 2025, SYS Holdings Co's Interest Expense was 円-13 Mil. Its Operating Income was 円705 Mil. And its Long-Term Debt & Capital Lease Obligation was 円1,206 Mil.

Interest Coverage=-1* Operating Income (A: Jul. 2025 )/Interest Expense (A: Jul. 2025 )
=-1*705.23/-12.796
=55.11

SYS Holdings Co's Interest Coverage for the quarter that ended in Jan. 2026 is calculated as

Here, for the three months ended in Jan. 2026, SYS Holdings Co's Interest Expense was 円-3 Mil. Its Operating Income was 円227 Mil. And its Long-Term Debt & Capital Lease Obligation was 円1,006 Mil.

Interest Coverage=-1* Operating Income (Q: Jan. 2026 )/Interest Expense (Q: Jan. 2026 )
=-1*226.702/-3.027
=74.89

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 74.89 mean?
SYS Holdings Co (TSE:3988) has a Interest Coverage of 74.89 as of Jan. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on SYS Holdings Co and its competitors. This is 26% below median its historical median of 101.18. Over the past decade, SYS Holdings Co's Interest Coverage has ranged from 37.52 to 214.10. According to the industry distribution chart, SYS Holdings Co ranks #781 out of 1728 companies in the Software industry, placing it in the top 45.2%.
Is SYS Holdings Co's Interest Coverage too high?
SYS Holdings Co's current Interest Coverage of 74.89 is 26% below median its 10-year median of 101.18. Over the past 10 years, this metric has ranged from a low of 37.52 to a high of 214.10. The Software industry median Interest Coverage is 25.54. SYS Holdings Co's value of 74.89 is 193.3% above this industry median. Based on the distribution chart, SYS Holdings Co ranks #781 out of 1728 companies in the Software industry, which is above the industry midpoint. Overall, SYS Holdings Co has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SYS Holdings Co's Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, SYS Holdings Co ranks #781 out of 1728 companies for Interest Coverage. This puts SYS Holdings Co in the upper half of its industry. The industry median Interest Coverage is 25.54. SYS Holdings Co's value of 74.89 is 193.3% above this benchmark. Historically, SYS Holdings Co's own Interest Coverage has ranged from 37.52 to 214.10 over the past decade. While the company's 10-year median is 101.18 vs. the industry median of 25.54, SYS Holdings Co 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 25.54, based on 1,728 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. SYS Holdings Co's current Interest Coverage of 74.89 is 193.3% 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 SYS Holdings Co and its competitors. For the Software industry, the median Interest Coverage is 25.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SYS Holdings Co's current Interest Coverage is 74.89, which is 26% below median its own 10-year median of 101.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SYS Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, SYS Holdings Co (TSE:3988) is currently considered Modestly Undervalued. The stock's GF Value™ is 円694.94, compared to a current price of 円550.00 — trading 20.9% below its estimated fair value. The current Interest Coverage is 74.89, which is 26% below median its 10-year median of 101.18 and 193.3% above the Software industry median of 25.54. SYS Holdings Co's overall GF Score™ is 90/100 with 2 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 SYS Holdings Co (TSE:3988), the current Interest Coverage is 74.89 as of Jan. 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 SYS Holdings Co (TSE:3988) Overvalued in 2026?

Based on GuruFocus' analysis, SYS Holdings Co stock appears to be undervalued. The current stock price of 円550.00 is trading 20.9% below its estimated GF Value™ of 円694.94. GuruFocus considers SYS Holdings Co to be Modestly Undervalued.

Key valuation signals for TSE:3988:

  • Interest Coverage: 74.89 (26% below median its 10-year median of 101.18)
  • GF Value™: 円694.94 vs. price of 円550.00 (20.9% below fair value)
  • GF Score™: 90/100 with 2 warning signs
  • Industry Position: 193.3% above the Software median (#781 of 1728)

No single metric tells the full story. See the TSE:3988 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


SYS Holdings Co Business Description

Address Higashi-ku 35, No. 16 No. 1, Aichi Prefecture, Fuji Building, 2nd floor, Nagoya, JPN, 461-0002
SYS Holdings Co Ltd operates in the information service business, which provides IT system development and IT solutions services. It offers manufacturing solutions, social information infrastructure solutions, and mobile solutions. It has a single segment of the comprehensive information service business.
90GF Score

Get the complete analysis for TSE:3988

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円550.00
Price
円694.94
GF Value