Kps AG (FRA:KSC) Financial Strength: 3 (As of Mar. 2026) — 50% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
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.

FRA:KSC Kps AG FRA:KSC
34 GF Score
Price €0.30
GF Value €0.57
Valuation Possible Value Trap
! 7 Warning Signs
View Full Analysis

What is Kps AG Financial Strength?

Kps AG FRA:KSC -8.07% 34 Financial Strength is 3 as of Mar. 2026, which is 50% below its 10-year median of 6.00. GuruFocus rates FRA:KSC with a GF Score™ of 34/100 and a GF Value™ of €0.57 (Possible Value Trap). The stock has 7 warning signs investors should review.

Kps AG has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Kps AG displays poor financial strength. Usually, this is caused by too much debt for the company.

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.

Kps AG's Interest Coverage for the quarter that ended in Mar. 2026 was 0.81. Kps AG's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.15. As of today, Kps AG's Altman Z-Score is 0.58.


Kps AG  (FRA:KSC) 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.

Kps AG has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Kps AG Financial Strength Related Terms


FRA:KSC vs IBM, ACN, FISV: Financial Strength Comparison

For the Information Technology Services subindustry, Kps AG'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.


Kps AG Financial Strength vs Software Industry

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

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


FRA:KSC
34GF Score
Kps AG FRA:KSC
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kps AG 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:

Kps AG's Interest Expense for the months ended in Mar. 2026 was €-1.3 Mil. Its Operating Income for the months ended in Mar. 2026 was €1.1 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was €12.3 Mil.

Kps AG'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*1.068/-1.319
=0.81

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

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

Kps AG'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
=(3.702 + 12.311) / 109.4
=0.15

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.

Kps AG has a Z-score of 0.58, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.58 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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 3 mean?
Kps AG (FRA:KSC) has a Financial Strength of 3 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 Kps AG and its competitors. This is 50% below median its historical median of 6.00. Over the past decade, Kps AG's Financial Strength has ranged from 3.00 to 10.00.
Is Kps AG's Financial Strength too high?
Kps AG's current Financial Strength of 3 is 50% below median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 10.00. Overall, Kps AG has a GF Score™ of 34/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Kps AG's Financial Strength compare to IBM and ACN?
Kps AG's Financial Strength of 3 can be compared against companies in the Software industry. Historically, Kps AG's own Financial Strength has ranged from 3.00 to 10.00 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 Kps AG and its competitors. Kps AG's current Financial Strength is 3, which is 50% below median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kps AG stock overvalued right now?
Based on GuruFocus' analysis, Kps AG (FRA:KSC) is currently considered Possible Value Trap. The stock's GF Value™ is €0.57, compared to a current price of €0.30 — trading 48.1% below its estimated fair value. The current Financial Strength is 3, which is 50% below median its 10-year median of 6.00. Kps AG's overall GF Score™ is 34/100 with 7 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 Kps AG (FRA:KSC), the current Financial Strength is 3 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 Kps AG (FRA:KSC) Overvalued in 2026?

Based on GuruFocus' analysis, Kps AG stock appears to be undervalued. The current stock price of €0.30 is trading 48.1% below its estimated GF Value™ of €0.57. GuruFocus considers Kps AG to be Possible Value Trap.

Key valuation signals for FRA:KSC:

  • Financial Strength: 3 (50% below median its 10-year median of 6.00)
  • GF Value™: €0.57 vs. price of €0.30 (48.1% below fair value)
  • GF Score™: 34/100 with 7 warning signs

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


Kps AG Business Description

Other Exchanges 0M2T:UKKSC:Germany
Address Beta-Strasse 10 H, Unterfohring, Munchen, BY, DEU, 85774
Kps AG is a German-based company that holds and consults information technology companies that provide business transformation and process optimization services. Its operating segments include Management Consulting / Transformation Consulting, System Integration, and Products /Licenses. The majority of its revenue comes from the Management consulting segment, which includes providing support for customers and developing concepts and solutions taking into account process, logistic, financial, and systems integration. The company's revenue includes the provision of services, revenue from maintenance contracts, and the sale of software. The company carries its operations in Germany, Switzerland, Scandinavia, the United Kingdom, Benelux, Spain, and others.
34GF Score

Get the complete analysis for FRA:KSC

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

€0.30
Price
€0.57
GF Value