Flect Co (TSE:4414) Interest Coverage: 298.66 (As of Mar. 2026) — 201% Above Median


TSE:4414 Flect Co Ltd TSE:4414
77 GF Score
Price 円1,150.00
GF Value 円2,855.96
Valuation Significantly Undervalued
! 1 Warning Sign
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What is Flect Co Interest Coverage?

Flect Co TSE:4414 +1.14% 77 Interest Coverage is 298.66 as of Mar. 2026, which is 201% above its 10-year median of 99.34. GuruFocus rates TSE:4414 with a GF Score™ of 77/100 and a GF Value™ of 円2,855.96 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,704 Software companies, Flect Co ranks better than 76.12% 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. Flect Co's Operating Income for the six months ended in Mar. 2026 was 円829 Mil. Flect Co's Interest Expense for the six months ended in Mar. 2026 was 円-3 Mil. Flect Co's interest coverage for the quarter that ended in Mar. 2026 was 298.66. 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. Flect Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

TSE:4414' s Interest Coverage Range Over the Past 10 Years
Min: 56.99   Med: 99.34   Max: 214.74
Current: 214.74


TSE:4414's Interest Coverage is ranked better than
76.12% of 1704 companies
in the Software industry
Industry Median: 24.75 vs TSE:4414: 214.74

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


Flect Co  (TSE:4414) 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 .


Flect Co Interest Coverage Related Terms


Flect Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Flect 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.

Flect Co Interest Coverage Chart

Flect Co Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial 57.80 77.31 121.37 132.65 214.74

Flect Co Semi-Annual Data
Mar20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 113.27 102.78 164.15 137.50 298.66

TSE:4414 vs MSFT, ORCL, PLTR: Interest Coverage Comparison

For the Software - Infrastructure subindustry, Flect 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.


Flect Co Interest Coverage vs Software Industry

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

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


TSE:4414
77GF Score
Flect Co Ltd TSE:4414
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Flect 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.

Flect 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, Flect Co's Interest Expense was 円-6 Mil. Its Operating Income was 円1,244 Mil. And its Long-Term Debt & Capital Lease Obligation was 円382 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*1244.194/-5.794
=214.74

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

Here, for the six months ended in Mar. 2026, Flect Co's Interest Expense was 円-3 Mil. Its Operating Income was 円829 Mil. And its Long-Term Debt & Capital Lease Obligation was 円382 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*829.365/-2.777
=298.66

* 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 298.66 mean?
Flect Co (TSE:4414) has a Interest Coverage of 298.66 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Flect Co and its competitors. This is 201% above median its historical median of 99.34. Over the past decade, Flect Co's Interest Coverage has ranged from 56.99 to 214.74. According to the industry distribution chart, Flect Co ranks #407 out of 1704 companies in the Software industry, placing it in the top 23.9%.
Is Flect Co's Interest Coverage too high?
Flect Co's current Interest Coverage of 298.66 is 201% above median its 10-year median of 99.34. Over the past 10 years, this metric has ranged from a low of 56.99 to a high of 214.74. The Software industry median Interest Coverage is 24.75. Flect Co's value of 298.66 is 1106.7% above this industry median. Based on the distribution chart, Flect Co ranks #407 out of 1704 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Flect Co has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Flect Co's Interest Coverage compare to MSFT and ORCL?
According to the Software industry distribution chart, Flect Co ranks #407 out of 1704 companies for Interest Coverage. This places Flect Co in the top 24% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 24.75. Flect Co's value of 298.66 is 1106.7% above this benchmark. Historically, Flect Co's own Interest Coverage has ranged from 56.99 to 214.74 over the past decade. While the company's 10-year median is 99.34 vs. the industry median of 24.75, Flect 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 24.75, based on 1,704 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. Flect Co's current Interest Coverage of 298.66 is 1106.7% 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 Flect Co and its competitors. For the Software industry, the median Interest Coverage is 24.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Flect Co's current Interest Coverage is 298.66, which is 201% above median its own 10-year median of 99.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Flect Co stock overvalued right now?
Based on GuruFocus' analysis, Flect Co (TSE:4414) is currently considered Significantly Undervalued. The stock's GF Value™ is 円2,855.96, compared to a current price of 円1,150.00 — trading 59.7% below its estimated fair value. The current Interest Coverage is 298.66, which is 201% above median its 10-year median of 99.34 and 1106.7% above the Software industry median of 24.75. Flect Co's overall GF Score™ is 77/100 with 1 warning sign 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 Flect Co (TSE:4414), the current Interest Coverage is 298.66 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 Flect Co (TSE:4414) Overvalued in 2026?

Based on GuruFocus' analysis, Flect Co stock appears to be undervalued. The current stock price of 円1,150.00 is trading 59.7% below its estimated GF Value™ of 円2,855.96. GuruFocus considers Flect Co to be Significantly Undervalued.

Key valuation signals for TSE:4414:

  • Interest Coverage: 298.66 (201% above median its 10-year median of 99.34)
  • GF Value™: 円2,855.96 vs. price of 円1,150.00 (59.7% below fair value)
  • GF Score™: 77/100 with 1 warning sign
  • Industry Position: 1106.7% above the Software median (#407 of 1704)

No single metric tells the full story. See the TSE:4414 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Flect Co Business Description

Address 1-1-1 Shibaura, 11th Floor, Hamamatsucho Building, Minato-ku, Tokyo, JPN, 105-0023
Flect Co Ltd is a multi-cloud integrator that supports companies' digital transformation (DX) with cloud technology and design. The company provides a range of digital solutions for domestic businesses, including IoT, mobility, and AI services across multiple cloud platforms. It also offers e-commerce systems for both corporate clients (B2B) and customer-facing retail (B2C), along with community platforms to enhance customer engagement. Additionally, it supports API, ID, and data integration through its unified platforms. It operates in a single segment, the cloud solutions business.
77GF Score

Get the complete analysis for TSE:4414

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

円1,150.00
Price
円2,855.96
GF Value