Hon Hai Precision Industry CoHNHPF -1.12%91 Interest Coverage is 7.09 as of Dec. 2025, which is 79% above its 10-year median of 3.95. GuruFocus rates HNHPF with a GF Score™ of 91/100 and a GF Value™ of $14.39 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,672 Hardware companies, Hon Hai Precision Industry Co ranks worse than 67.11% 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. Hon Hai Precision Industry Co's
Operating Income
for the
three
months ended in Dec. 2025 was $2,730 Mil. Hon Hai Precision Industry Co's Interest Expense for the
three
months ended in Dec. 2025 was $-385 Mil.
Hon Hai Precision Industry Co's interest coverage for the quarter that ended in Dec. 2025 was 7.09.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Hon Hai Precision Industry Co's Interest Coverage or its related term are showing as below:
HNHPF'
s Interest Coverage Range Over the Past 10 Years
Min: 1.73 Med: 3.95 Max: 6.8
Current: 6.8
HNHPF's Interest Coverage is ranked worse than 67.11% of 1672
companies
in the Hardware industry
Industry Median: 13.73
vs HNHPF: 6.80
Hon Hai Precision Industry Co (OTCPK:HNHPF) 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 .
Hon Hai Precision Industry Co Interest Coverage Related Terms
Hon Hai Precision Industry Co Interest Coverage Historical Data
* 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.
Hon Hai Precision Industry Co Interest Coverage Chart
HNHPF vs APH, GLW, TEL: Interest Coverage Comparison
For the Electronic Components subindustry, Hon Hai Precision Industry 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.
Hon Hai Precision Industry Co Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Hon Hai Precision Industry Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hon Hai Precision Industry Co's Interest Coverage falls into.
Hon Hai Precision Industry Co Interest Coverage Calculation
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.
Hon Hai Precision Industry Co (HNHPF) has a Interest Coverage of 7.09 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hon Hai Precision Industry Co and its competitors. This is 79% above median its historical median of 3.95. Over the past decade, Hon Hai Precision Industry Co's Interest Coverage has ranged from 1.73 to 6.80. According to the industry distribution chart, Hon Hai Precision Industry Co ranks #1122 out of 1672 companies in the Hardware industry, placing it in the top 67.1%.
Is Hon Hai Precision Industry Co's Interest Coverage too high?
Hon Hai Precision Industry Co's current Interest Coverage of 7.09 is 79% above median its 10-year median of 3.95. Over the past 10 years, this metric has ranged from a low of 1.73 to a high of 6.80. The Hardware industry median Interest Coverage is 13.73. Hon Hai Precision Industry Co's value of 7.09 is 48.4% below this industry median. Based on the distribution chart, Hon Hai Precision Industry Co ranks #1122 out of 1672 companies in the Hardware industry, which is below the industry midpoint. Overall, Hon Hai Precision Industry Co has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hon Hai Precision Industry Co's Interest Coverage compare to APH and GLW?
According to the Hardware industry distribution chart, Hon Hai Precision Industry Co ranks #1122 out of 1672 companies for Interest Coverage. This places Hon Hai Precision Industry Co in the lower half of its industry. The industry median Interest Coverage is 13.73. Hon Hai Precision Industry Co's value of 7.09 is 48.4% below this benchmark. Historically, Hon Hai Precision Industry Co's own Interest Coverage has ranged from 1.73 to 6.80 over the past decade. While the company's 10-year median is 3.95 vs. the industry median of 13.73, Hon Hai Precision Industry Co has consistently been below 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.73, based on 1,672 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. Hon Hai Precision Industry Co's current Interest Coverage of 7.09 is 48.4% below 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 Hon Hai Precision Industry Co and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hon Hai Precision Industry Co's current Interest Coverage is 7.09, which is 79% above median its own 10-year median of 3.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hon Hai Precision Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Hon Hai Precision Industry Co (HNHPF) is currently considered Fairly Valued. The stock's GF Value™ is $14.39, compared to a current price of $15.83 — trading 10% above its estimated fair value. The current Interest Coverage is 7.09, which is 79% above median its 10-year median of 3.95 and 48.4% below the Hardware industry median of 13.73. Hon Hai Precision Industry Co's overall GF Score™ is 91/100 with 1 warning sign 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 Hon Hai Precision Industry Co (HNHPF), the current Interest Coverage is 7.09 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 Hon Hai Precision Industry Co (HNHPF) Overvalued in 2026?
Based on GuruFocus' analysis, Hon Hai Precision Industry Co stock appears to be overvalued.
The current stock price of $15.83 is trading 10% above its estimated GF Value™ of $14.39.
GuruFocus considers Hon Hai Precision Industry Co to be Fairly Valued.
Key valuation signals for HNHPF:
Interest Coverage: 7.09 (79% above median its 10-year median of 3.95)
GF Value™: $14.39 vs. price of $15.83 (10% above fair value)
Industry Position: 48.4% below the Hardware median (#1122 of 1672)
No single metric tells the full story. See the HNHPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hon Hai Precision Industry Co Business Description
Hon Hai Precision is the world's largest contract manufacturer of consumer electronics, communications, and computer products. It is the biggest supplier to Apple, whose business accounted for around 50% of overall revenue in 2025. Hon Hai is also involved in the production of upstream components such as electronic connectors, semiconductor packaging, and metal casings for smartphones, as well as producing servers. These upstream activities are mainly conducted through its listed majority-owned subsidiaries Foxconn Industrial Internet and FIH Mobile. In response to its traditional end markets of computers, smartphones, and telecom equipment maturing in 2019 it started on a strategy to develop expertise in three new growth areas—electric vehicles, digital health, and robotics.
91GF Score
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