D I System Co (TSE:4421) Interest Coverage: 148.74 (As of Mar. 2026) — 20% Below Median

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TSE:4421 D I System Co Ltd TSE:4421
83 GF Score
Price 円941.00
GF Value 円1,052.49
Valuation Modestly Undervalued
! 1 Warning Sign
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What is D I System Co Interest Coverage?

D I System Co TSE:4421 -0.21% 83 Interest Coverage is 148.74 as of Mar. 2026, which is 20% below its 10-year median of 184.94. GuruFocus rates TSE:4421 with a GF Score™ of 83/100 and a GF Value™ of 円1,052.49 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,710 Software companies, D I System Co ranks better than 72.81% 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. D I System Co's Operating Income for the three months ended in Mar. 2026 was 円112 Mil. D I System Co's Interest Expense for the three months ended in Mar. 2026 was 円-1 Mil. D I System Co's interest coverage for the quarter that ended in Mar. 2026 was 148.74. 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. D I System Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

TSE:4421' s Interest Coverage Range Over the Past 10 Years
Min: 5.43   Med: 184.94   Max: 1243.85
Current: 155.97


TSE:4421's Interest Coverage is ranked better than
72.81% of 1710 companies
in the Software industry
Industry Median: 26.03 vs TSE:4421: 155.97

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


D I System Co  (TSE:4421) 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 .


D I System Co Interest Coverage Related Terms


D I System Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for D I System 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.

D I System Co Interest Coverage Chart

D I System Co Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 452.45 258.99 207.35 335.26 1,243.85

D I System Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 880.84 10,193.56 1,803.74 148.74 55.12

TSE:4421 vs IBM, ACN, CTSH: Interest Coverage Comparison

For the Information Technology Services subindustry, D I System 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.


D I System Co Interest Coverage vs Software Industry

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

* The bar in red indicates where D I System Co's Interest Coverage falls into.


TSE:4421
83GF Score
D I System Co Ltd TSE:4421
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

D I System 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.

D I System Co's Interest Coverage for the fiscal year that ended in Sep. 2025 is calculated as

Here, for the fiscal year that ended in Sep. 2025, D I System Co's Interest Expense was 円-0 Mil. Its Operating Income was 円357 Mil. And its Long-Term Debt & Capital Lease Obligation was 円0 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2025 )/Interest Expense (A: Sep. 2025 )
=-1*356.985/-0.287
=1,243.85

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

Here, for the three months ended in Mar. 2026, D I System Co's Interest Expense was 円-1 Mil. Its Operating Income was 円112 Mil. And its Long-Term Debt & Capital Lease Obligation was 円240 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*111.999/-0.753
=148.74

* 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 148.74 mean?
D I System Co (TSE:4421) has a Interest Coverage of 148.74 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on D I System Co and its competitors. This is 20% below median its historical median of 184.94. Over the past decade, D I System Co's Interest Coverage has ranged from 5.43 to 1,243.85. According to the industry distribution chart, D I System Co ranks #465 out of 1710 companies in the Software industry, placing it in the top 27.2%.
Is D I System Co's Interest Coverage too high?
D I System Co's current Interest Coverage of 148.74 is 20% below median its 10-year median of 184.94. Over the past 10 years, this metric has ranged from a low of 5.43 to a high of 1,243.85. The Software industry median Interest Coverage is 26.03. D I System Co's value of 148.74 is 471.4% above this industry median. Based on the distribution chart, D I System Co ranks #465 out of 1710 companies in the Software industry, which is above the industry midpoint. Overall, D I System Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does D I System Co's Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, D I System Co ranks #465 out of 1710 companies for Interest Coverage. This puts D I System Co in the upper half of its industry. The industry median Interest Coverage is 26.03. D I System Co's value of 148.74 is 471.4% above this benchmark. Historically, D I System Co's own Interest Coverage has ranged from 5.43 to 1,243.85 over the past decade. While the company's 10-year median is 184.94 vs. the industry median of 26.03, D I System 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 26.03, based on 1,710 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. D I System Co's current Interest Coverage of 148.74 is 471.4% 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 D I System Co and its competitors. For the Software industry, the median Interest Coverage is 26.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. D I System Co's current Interest Coverage is 148.74, which is 20% below median its own 10-year median of 184.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is D I System Co stock overvalued right now?
Based on GuruFocus' analysis, D I System Co (TSE:4421) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,052.49, compared to a current price of 円941.00 — trading 10.6% below its estimated fair value. The current Interest Coverage is 148.74, which is 20% below median its 10-year median of 184.94 and 471.4% above the Software industry median of 26.03. D I System Co's overall GF Score™ is 83/100 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 D I System Co (TSE:4421), the current Interest Coverage is 148.74 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 D I System Co (TSE:4421) Overvalued in 2026?

Based on GuruFocus' analysis, D I System Co stock appears to be undervalued. The current stock price of 円941.00 is trading 10.6% below its estimated GF Value™ of 円1,052.49. GuruFocus considers D I System Co to be Modestly Undervalued.

Key valuation signals for TSE:4421:

  • Interest Coverage: 148.74 (20% below median its 10-year median of 184.94)
  • GF Value™: 円1,052.49 vs. price of 円941.00 (10.6% below fair value)
  • GF Score™: 83/100 with 1 warning sign
  • Industry Position: 471.4% above the Software median (#465 of 1710)

No single metric tells the full story. See the TSE:4421 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


D I System Co Business Description

Address 4-10-1 Nakano, 2nd Floor, Nakano Central Park East, Nakano-ku, Tokyo, JPN, 164-0001
D I System Co Ltd engages in the system integration, education, and security solutions businesses in Japan. The company operates in two business segments. The system integration business is engaged in the design and development of business applications, the design and construction of infrastructure systems, and the operation and maintenance of business application infrastructure systems. The educational service security solution business provides educational services such as computer languages, databases, servers, and networks. The company also develops, sells, introduces, and maintains security products.
83GF Score

Get the complete analysis for TSE:4421

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

円941.00
Price
円1,052.49
GF Value