SIG Group Co (TSE:4386) Interest Coverage: 37.12 (As of Mar. 2026) — 56% Below Median

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TSE:4386 SIG Group Co Ltd TSE:4386
94 GF Score
Price 円889.00
GF Value 円1,026.41
Valuation Modestly Undervalued
! 3 Warning Signs
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What is SIG Group Co Interest Coverage?

SIG Group Co TSE:4386 -2.20% 94 Interest Coverage is 37.12 as of Mar. 2026, which is 56% below its 10-year median of 84.50. GuruFocus rates TSE:4386 with a GF Score™ of 94/100 and a GF Value™ of 円1,026.41 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,716 Software companies, SIG Group Co ranks better than 54.37% 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. SIG Group Co's Operating Income for the three months ended in Mar. 2026 was 円209 Mil. SIG Group Co's Interest Expense for the three months ended in Mar. 2026 was 円-6 Mil. SIG Group Co's interest coverage for the quarter that ended in Mar. 2026 was 37.12. The higher the ratio, the stronger the company's financial strength is.

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

TSE:4386' s Interest Coverage Range Over the Past 10 Years
Min: 23.28   Med: 84.5   Max: 509.73
Current: 35.91


TSE:4386's Interest Coverage is ranked better than
54.37% of 1716 companies
in the Software industry
Industry Median: 26.555 vs TSE:4386: 35.91

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


SIG Group Co  (TSE:4386) 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 .


SIG Group Co Interest Coverage Related Terms


SIG Group Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for SIG Group 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.

SIG Group Co Interest Coverage Chart

SIG Group Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 161.18 89.52 42.62 71.35 35.91

SIG Group Co Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Mar25 Jun25 Sep25 Dec25 Mar26
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 N/A 26.20 40.07 40.58 37.12

TSE:4386 vs IBM, ACN, FISV: Interest Coverage Comparison

For the Information Technology Services subindustry, SIG Group 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.


SIG Group Co Interest Coverage vs Software Industry

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

* The bar in red indicates where SIG Group Co's Interest Coverage falls into.


TSE:4386
94GF Score
SIG Group Co Ltd TSE:4386
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

SIG Group 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.

SIG Group Co's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, SIG Group Co's Interest Expense was 円-21 Mil. Its Operating Income was 円752 Mil. And its Long-Term Debt & Capital Lease Obligation was 円965 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*751.526/-20.929
=35.91

SIG Group Co's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, SIG Group Co's Interest Expense was 円-6 Mil. Its Operating Income was 円209 Mil. And its Long-Term Debt & Capital Lease Obligation was 円965 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*208.856/-5.626
=37.12

* 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 37.12 mean?
SIG Group Co (TSE:4386) has a Interest Coverage of 37.12 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on SIG Group Co and its competitors. This is 56% below median its historical median of 84.50. Over the past decade, SIG Group Co's Interest Coverage has ranged from 23.28 to 509.73. According to the industry distribution chart, SIG Group Co ranks #783 out of 1716 companies in the Software industry, placing it in the top 45.6%.
Is SIG Group Co's Interest Coverage too high?
SIG Group Co's current Interest Coverage of 37.12 is 56% below median its 10-year median of 84.50. Over the past 10 years, this metric has ranged from a low of 23.28 to a high of 509.73. The Software industry median Interest Coverage is 26.56. SIG Group Co's value of 37.12 is 39.8% above this industry median. Based on the distribution chart, SIG Group Co ranks #783 out of 1716 companies in the Software industry, which is above the industry midpoint. Overall, SIG Group Co has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SIG Group Co's Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, SIG Group Co ranks #783 out of 1716 companies for Interest Coverage. This puts SIG Group Co in the upper half of its industry. The industry median Interest Coverage is 26.56. SIG Group Co's value of 37.12 is 39.8% above this benchmark. Historically, SIG Group Co's own Interest Coverage has ranged from 23.28 to 509.73 over the past decade. While the company's 10-year median is 84.50 vs. the industry median of 26.56, SIG Group 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 26.56, based on 1,716 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. SIG Group Co's current Interest Coverage of 37.12 is 39.8% 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 SIG Group Co and its competitors. For the Software industry, the median Interest Coverage is 26.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SIG Group Co's current Interest Coverage is 37.12, which is 56% below median its own 10-year median of 84.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SIG Group Co stock overvalued right now?
Based on GuruFocus' analysis, SIG Group Co (TSE:4386) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,026.41, compared to a current price of 円889.00 — trading 13.4% below its estimated fair value. The current Interest Coverage is 37.12, which is 56% below median its 10-year median of 84.50 and 39.8% above the Software industry median of 26.56. SIG Group Co's overall GF Score™ is 94/100 with 3 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 SIG Group Co (TSE:4386), the current Interest Coverage is 37.12 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 SIG Group Co (TSE:4386) Overvalued in 2026?

Based on GuruFocus' analysis, SIG Group Co stock appears to be undervalued. The current stock price of 円889.00 is trading 13.4% below its estimated GF Value™ of 円1,026.41. GuruFocus considers SIG Group Co to be Modestly Undervalued.

Key valuation signals for TSE:4386:

  • Interest Coverage: 37.12 (56% below median its 10-year median of 84.50)
  • GF Value™: 円1,026.41 vs. price of 円889.00 (13.4% below fair value)
  • GF Score™: 94/100 with 3 warning signs
  • Industry Position: 39.8% above the Software median (#783 of 1716)

No single metric tells the full story. See the TSE:4386 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


SIG Group Co Business Description

Address 4-2-1 Kudankita, Ichigaya Square Building 8th Floor, Chiyoda-ku, Tokyo, JPN, 102-0073
SIG Group Co Ltd is an information technology services. The company's services include system intergration, solution sales, information technology infrastructure solution, and security.
94GF Score

Get the complete analysis for TSE:4386

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

円889.00
Price
円1,026.41
GF Value