FNTOF (Fronteo) Financial Strength: 4 (As of Mar. 2026) — 20% Below Median

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Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FNTOF Fronteo Inc FNTOF
54 GF Score
Price $3.76
GF Value $4.49
! 3 Warning Signs
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What is Fronteo Financial Strength?

Fronteo FNTOF 54 Financial Strength is 4 as of Mar. 2026, which is 20% below its 10-year median of 5.00. GuruFocus rates FNTOF with a GF Score™ of 54/100 and a GF Value™ of $4.49. The stock has 3 warning signs investors should review.

Fronteo has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Fronteo's Interest Coverage for the quarter that ended in Mar. 2026 was 25.17. Fronteo's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.45. As of today, Fronteo's Altman Z-Score is 3.97.


Fronteo  (OTCPK:FNTOF) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Fronteo has the Financial Strength Rank of 4.


Fronteo Financial Strength Related Terms


FNTOF vs IBM, ACN, FISV: Financial Strength Comparison

For the Information Technology Services subindustry, Fronteo's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Fronteo Financial Strength vs Software Industry

For the Software industry and Technology sector, Fronteo's Financial Strength distribution charts can be found below:

* The bar in red indicates where Fronteo's Financial Strength falls into.


FNTOF
54GF Score
Fronteo Inc FNTOF
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Fronteo Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Fronteo's Interest Expense for the months ended in Mar. 2026 was $-0.10 Mil. Its Operating Income for the months ended in Mar. 2026 was $2.57 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was $6.16 Mil.

Fronteo's Interest Coverage for the quarter that ended in Mar. 2026 is

Interest Coverage=-1*Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*2.567/-0.102
=25.17

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Fronteo's Debt to Revenue Ratio for the quarter that ended in Mar. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(19.201 + 6.162) / 55.92
=0.45

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Fronteo has a Z-score of 3.97, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.97 is strong.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 4 mean?
Fronteo (FNTOF) has a Financial Strength of 4 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Fronteo and its competitors. This is 20% below median its historical median of 5.00. Over the past decade, Fronteo's Financial Strength has ranged from 3.00 to 8.00.
Is Fronteo's Financial Strength too high?
Fronteo's current Financial Strength of 4 is 20% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 8.00. Overall, Fronteo has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does Fronteo's Financial Strength compare to IBM and ACN?
Fronteo's Financial Strength of 4 can be compared against companies in the Software industry. Historically, Fronteo's own Financial Strength has ranged from 3.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Software company?
A good Financial Strength depends on the Software industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Fronteo and its competitors. Fronteo's current Financial Strength is 4, which is 20% below median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fronteo stock overvalued right now?
Fronteo (FNTOF) has a current Financial Strength of 4. The stock's GF Value™ is $4.49, compared to a current price of $3.76 — trading 16.3% below its estimated fair value. The current Financial Strength is 4, which is 20% below median its 10-year median of 5.00. Fronteo's overall GF Score™ is 54/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Fronteo (FNTOF), the current Financial Strength is 4 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 Fronteo (FNTOF) Overvalued in 2026?

Based on GuruFocus' analysis, Fronteo stock appears to be undervalued. The current stock price of $3.76 is trading 16.3% below its estimated GF Value™ of $4.49.

Key valuation signals for FNTOF:

  • Financial Strength: 4 (20% below median its 10-year median of 5.00)
  • GF Value™: $4.49 vs. price of $3.76 (16.3% below fair value)
  • GF Score™: 54/100 with 3 warning signs

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


Fronteo Business Description

Other Exchanges 2158:Japan
Address Meisan Takahama building, 2-12-23 Kounan, Minato-ku, Tokyo, JPN, 108-0075
Fronteo Inc provides solutions, employing advanced technologies, for corporate litigation strategy and crisis management. The company's resources and operation systems are organized into two operating segments - e-discovery Business and AI Solutions services. It mainly offers eDiscovery and forensic services, such as data collection, data processing, data review and document production. The company primarily serves law firms, corporate legal departments, government agencies and other professional advisors who require innovative technology, responsive service and deep subject-matter expertise. Geographically, the company receives maximum revenue from the United States.
54GF Score

Get the complete analysis for FNTOF

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

$3.76
Price
$4.49
GF Value