Serverworks CoTSE:4434 +1.77%83 Interest Coverage is 205.93 as of Feb. 2026, which is 18% above its 10-year median of 173.81. GuruFocus rates TSE:4434 with a GF Score™ of 83/100 and a GF Value™ of 円3,578.60 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,704 Software companies, Serverworks Co ranks better than 77.23% 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. Serverworks Co's
Operating Income
for the
six
months ended in Feb. 2026 was 円535 Mil. Serverworks Co's Interest Expense for the
six
months ended in Feb. 2026 was 円-3 Mil.
Serverworks Co's interest coverage for the quarter that ended in Feb. 2026 was 205.93.
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. Serverworks Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Serverworks Co's Interest Coverage or its related term are showing as below:
TSE:4434'
s Interest Coverage Range Over the Past 10 Years
Min: 16.91 Med: 173.81 Max: 2860.07
Current: 240.76
TSE:4434's Interest Coverage is ranked better than 77.23% of 1704
companies
in the Software industry
Industry Median: 24.75
vs TSE:4434: 240.76
Serverworks Co (TSE:4434) 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 .
Serverworks Co Interest Coverage Related Terms
Serverworks Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Serverworks 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.
TSE:4434 vs MSFT, ORCL, PLTR: Interest Coverage Comparison
For the Software - Infrastructure subindustry, Serverworks 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.
Serverworks Co Interest Coverage vs Software Industry
For the Software industry and Technology sector, Serverworks Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Serverworks Co'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.
Serverworks Co (TSE:4434) has a Interest Coverage of 205.93 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Serverworks Co and its competitors. This is 18% above median its historical median of 173.81. Over the past decade, Serverworks Co's Interest Coverage has ranged from 16.91 to 2,860.07. According to the industry distribution chart, Serverworks Co ranks #388 out of 1704 companies in the Software industry, placing it in the top 22.8%.
Is Serverworks Co's Interest Coverage too high?
Serverworks Co's current Interest Coverage of 205.93 is 18% above median its 10-year median of 173.81. Over the past 10 years, this metric has ranged from a low of 16.91 to a high of 2,860.07. The Software industry median Interest Coverage is 24.75. Serverworks Co's value of 205.93 is 732% above this industry median. Based on the distribution chart, Serverworks Co ranks #388 out of 1704 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Serverworks Co has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Serverworks Co's Interest Coverage compare to MSFT and ORCL?
According to the Software industry distribution chart, Serverworks Co ranks #388 out of 1704 companies for Interest Coverage. This places Serverworks Co in the top 23% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 24.75. Serverworks Co's value of 205.93 is 732% above this benchmark. Historically, Serverworks Co's own Interest Coverage has ranged from 16.91 to 2,860.07 over the past decade. While the company's 10-year median is 173.81 vs. the industry median of 24.75, Serverworks 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. Serverworks Co's current Interest Coverage of 205.93 is 732% 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 Serverworks 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. Serverworks Co's current Interest Coverage is 205.93, which is 18% above median its own 10-year median of 173.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Serverworks Co stock overvalued right now?
Based on GuruFocus' analysis, Serverworks Co (TSE:4434) is currently considered Significantly Undervalued. The stock's GF Value™ is 円3,578.60, compared to a current price of 円1,954.00 — trading 45.4% below its estimated fair value. The current Interest Coverage is 205.93, which is 18% above median its 10-year median of 173.81 and 732% above the Software industry median of 24.75. Serverworks Co's overall GF Score™ is 83/100 with 4 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 Serverworks Co (TSE:4434), the current Interest Coverage is 205.93 as of Feb. 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 Serverworks Co (TSE:4434) Overvalued in 2026?
Based on GuruFocus' analysis, Serverworks Co stock appears to be undervalued.
The current stock price of 円1,954.00 is trading 45.4% below its estimated GF Value™ of 円3,578.60.
GuruFocus considers Serverworks Co to be Significantly Undervalued.
Key valuation signals for TSE:4434:
Interest Coverage: 205.93 (18% above median its 10-year median of 173.81)
GF Value™: 円3,578.60 vs. price of 円1,954.00 (45.4% below fair value)
Industry Position: 732% above the Software median (#388 of 1704)
No single metric tells the full story. See the TSE:4434 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Serverworks Co Ltd is a cloud integrator that provides integration business and services specialized for Amazon Web Services (AWS). The company's services include AWS transition support, AWS resale service, AWS operation automation service.
83GF Score
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