Nippon RADTSE:4736 +0.17%70 Interest Coverage is 1,376.77 as of Mar. 2026, which is 1312% above its 10-year median of 97.48. GuruFocus rates TSE:4736 with a GF Score™ of 70/100 and a GF Value™ of 円723.40 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,706 Software companies, Nippon RAD ranks better than 84.99% 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. Nippon RAD's
Operating Income
for the
six
months ended in Mar. 2026 was 円120 Mil. Nippon RAD's Interest Expense for the
six
months ended in Mar. 2026 was 円-0 Mil.
Nippon RAD's interest coverage for the quarter that ended in Mar. 2026 was 1,376.77.
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. Nippon RAD Inc has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Nippon RAD's Interest Coverage or its related term are showing as below:
TSE:4736'
s Interest Coverage Range Over the Past 10 Years
Min: 39.09 Med: 97.48 Max: 5583.49
Current: 1572.33
TSE:4736's Interest Coverage is ranked better than 84.99% of 1706
companies
in the Software industry
Industry Median: 24.75
vs TSE:4736: 1572.33
Nippon RAD (TSE:4736) 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 .
Nippon RAD Interest Coverage Related Terms
Nippon RAD Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nippon RAD'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:4736 vs IBM, ACN, FISV: Interest Coverage Comparison
For the Information Technology Services subindustry, Nippon RAD'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.
Nippon RAD Interest Coverage vs Software Industry
For the Software industry and Technology sector, Nippon RAD's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nippon RAD'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.
Nippon RAD (TSE:4736) has a Interest Coverage of 1,376.77 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nippon RAD and its competitors. This is 1312% above median its historical median of 97.48. Over the past decade, Nippon RAD's Interest Coverage has ranged from 39.09 to 5,583.49. According to the industry distribution chart, Nippon RAD ranks #256 out of 1706 companies in the Software industry, placing it in the top 15%.
Is Nippon RAD's Interest Coverage too high?
Nippon RAD's current Interest Coverage of 1,376.77 is 1312% above median its 10-year median of 97.48. Over the past 10 years, this metric has ranged from a low of 39.09 to a high of 5,583.49. The Software industry median Interest Coverage is 24.75. Nippon RAD's value of 1,376.77 is 5462.7% above this industry median. Based on the distribution chart, Nippon RAD ranks #256 out of 1706 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon RAD has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon RAD's Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, Nippon RAD ranks #256 out of 1706 companies for Interest Coverage. This places Nippon RAD in the top 15% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 24.75. Nippon RAD's value of 1,376.77 is 5462.7% above this benchmark. Historically, Nippon RAD's own Interest Coverage has ranged from 39.09 to 5,583.49 over the past decade. While the company's 10-year median is 97.48 vs. the industry median of 24.75, Nippon RAD 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 1,706 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. Nippon RAD's current Interest Coverage of 1,376.77 is 5462.7% 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 Nippon RAD 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. Nippon RAD's current Interest Coverage is 1,376.77, which is 1312% above median its own 10-year median of 97.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon RAD stock overvalued right now?
Based on GuruFocus' analysis, Nippon RAD (TSE:4736) is currently considered Modestly Undervalued. The stock's GF Value™ is 円723.40, compared to a current price of 円603.00 — trading 16.6% below its estimated fair value. The current Interest Coverage is 1,376.77, which is 1312% above median its 10-year median of 97.48 and 5462.7% above the Software industry median of 24.75. Nippon RAD's overall GF Score™ is 70/100 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 Nippon RAD (TSE:4736), the current Interest Coverage is 1,376.77 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 Nippon RAD (TSE:4736) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon RAD stock appears to be undervalued.
The current stock price of 円603.00 is trading 16.6% below its estimated GF Value™ of 円723.40.
GuruFocus considers Nippon RAD to be Modestly Undervalued.
Key valuation signals for TSE:4736:
Interest Coverage: 1,376.77 (1312% above median its 10-year median of 97.48)
GF Value™: 円723.40 vs. price of 円603.00 (16.6% below fair value)
Industry Position: 5462.7% above the Software median (#256 of 1706)
No single metric tells the full story. See the TSE:4736 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon RAD Inc is engaged in the development of systems and software for various industries and operations. The solutions of the company include the GW system, card operation system, risk management system, vehicle management system, risk management system, and others.
70GF Score
Get the complete analysis for TSE:4736
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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