Nova System CoTSE:5257 +0.19%84 Interest Coverage is 65.18 as of Dec. 2025, which is 39% above its 10-year median of 46.96. GuruFocus rates TSE:5257 with a GF Score™ of 84/100 and a GF Value™ of 円3,148.32 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,704 Software companies, Nova System Co ranks better than 57.63% 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. Nova System Co's
Operating Income
for the
six
months ended in Dec. 2025 was 円237 Mil. Nova System Co's Interest Expense for the
six
months ended in Dec. 2025 was 円-4 Mil.
Nova System Co's interest coverage for the quarter that ended in Dec. 2025 was 65.18.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Nova System Co's Interest Coverage or its related term are showing as below:
TSE:5257'
s Interest Coverage Range Over the Past 10 Years
Min: 13.18 Med: 46.96 Max: 115.25
Current: 45.11
TSE:5257's Interest Coverage is ranked better than 57.63% of 1704
companies
in the Software industry
Industry Median: 24.75
vs TSE:5257: 45.11
Nova System Co (TSE:5257) 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 .
Nova System Co Interest Coverage Related Terms
Nova System Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Nova 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.
TSE:5257 vs UBER, SHOP, CRM: Interest Coverage Comparison
For the Software - Application subindustry, Nova 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.
Nova System Co Interest Coverage vs Software Industry
For the Software industry and Technology sector, Nova System Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Nova System 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.
Nova System Co (TSE:5257) has a Interest Coverage of 65.18 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Nova System Co and its competitors. This is 39% above median its historical median of 46.96. Over the past decade, Nova System Co's Interest Coverage has ranged from 13.18 to 115.25. According to the industry distribution chart, Nova System Co ranks #722 out of 1704 companies in the Software industry, placing it in the top 42.4%.
Is Nova System Co's Interest Coverage too high?
Nova System Co's current Interest Coverage of 65.18 is 39% above median its 10-year median of 46.96. Over the past 10 years, this metric has ranged from a low of 13.18 to a high of 115.25. The Software industry median Interest Coverage is 24.75. Nova System Co's value of 65.18 is 163.4% above this industry median. Based on the distribution chart, Nova System Co ranks #722 out of 1704 companies in the Software industry, which is above the industry midpoint. Overall, Nova System Co has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nova System Co's Interest Coverage compare to UBER and SHOP?
According to the Software industry distribution chart, Nova System Co ranks #722 out of 1704 companies for Interest Coverage. This puts Nova System Co in the upper half of its industry. The industry median Interest Coverage is 24.75. Nova System Co's value of 65.18 is 163.4% above this benchmark. Historically, Nova System Co's own Interest Coverage has ranged from 13.18 to 115.25 over the past decade. While the company's 10-year median is 46.96 vs. the industry median of 24.75, Nova 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 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. Nova System Co's current Interest Coverage of 65.18 is 163.4% 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 Nova System 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. Nova System Co's current Interest Coverage is 65.18, which is 39% above median its own 10-year median of 46.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nova System Co stock overvalued right now?
Based on GuruFocus' analysis, Nova System Co (TSE:5257) is currently considered Modestly Undervalued. The stock's GF Value™ is 円3,148.32, compared to a current price of 円2,585.00 — trading 17.9% below its estimated fair value. The current Interest Coverage is 65.18, which is 39% above median its 10-year median of 46.96 and 163.4% above the Software industry median of 24.75. Nova System Co's overall GF Score™ is 84/100 with 2 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 Nova System Co (TSE:5257), the current Interest Coverage is 65.18 as of Dec. 2025. 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 Nova System Co (TSE:5257) Overvalued in 2026?
Based on GuruFocus' analysis, Nova System Co stock appears to be undervalued.
The current stock price of 円2,585.00 is trading 17.9% below its estimated GF Value™ of 円3,148.32.
GuruFocus considers Nova System Co to be Modestly Undervalued.
Key valuation signals for TSE:5257:
Interest Coverage: 65.18 (39% above median its 10-year median of 46.96)
GF Value™: 円3,148.32 vs. price of 円2,585.00 (17.9% below fair value)
Industry Position: 163.4% above the Software median (#722 of 1704)
No single metric tells the full story. See the TSE:5257 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nova System Co Ltd is involved in the system integration business mainly for the financial and insurance industry, medical care and cloud service business. The Company's business is a single segment of software development business, and the services it provides are system integration and cloud services.
84GF Score
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