Chen Nan Iron Wire Co (ROCO:2071) Interest Coverage: 4.42 (As of Dec. 2025) — Near Median

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ROCO:2071 Chen Nan Iron Wire Co Ltd ROCO:2071
79 GF Score
Price NT$36.00
GF Value NT$22.58
Valuation Significantly Overvalued
! 7 Warning Signs
View Full Analysis

What is Chen Nan Iron Wire Co Interest Coverage?

Chen Nan Iron Wire Co ROCO:2071 +9.59% 79 Interest Coverage is 4.42 as of Dec. 2025, which is 7% below its 10-year median of 4.75. GuruFocus rates ROCO:2071 with a GF Score™ of 79/100 and a GF Value™ of NT$22.58 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,322 Industrial Products companies, Chen Nan Iron Wire Co ranks worse than 66.41% 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. Chen Nan Iron Wire Co's Operating Income for the six months ended in Dec. 2025 was NT$40 Mil. Chen Nan Iron Wire Co's Interest Expense for the six months ended in Dec. 2025 was NT$-9 Mil. Chen Nan Iron Wire Co's interest coverage for the quarter that ended in Dec. 2025 was 4.42. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Chen Nan Iron Wire Co's Interest Coverage or its related term are showing as below:

ROCO:2071' s Interest Coverage Range Over the Past 10 Years
Min: 0.32   Med: 4.75   Max: 11.07
Current: 6.87


ROCO:2071's Interest Coverage is ranked worse than
66.41% of 2322 companies
in the Industrial Products industry
Industry Median: 14.735 vs ROCO:2071: 6.87

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


Chen Nan Iron Wire Co  (ROCO:2071) 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 .


Chen Nan Iron Wire Co Interest Coverage Related Terms


Chen Nan Iron Wire Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Chen Nan Iron Wire 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.

Chen Nan Iron Wire Co Interest Coverage Chart

Chen Nan Iron Wire Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.18 11.07 6.87 7.87 6.87

Chen Nan Iron Wire Co Semi-Annual Data
Dec15 Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.15 6.53 9.33 9.20 4.42

ROCO:2071 vs SNA, RBC, LECO: Interest Coverage Comparison

For the Tools & Accessories subindustry, Chen Nan Iron Wire 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.


Chen Nan Iron Wire Co Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Chen Nan Iron Wire Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Chen Nan Iron Wire Co's Interest Coverage falls into.


ROCO:2071
79GF Score
Chen Nan Iron Wire Co Ltd ROCO:2071
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Chen Nan Iron Wire 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


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

Chen Nan Iron Wire Co's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Chen Nan Iron Wire Co's Interest Expense was NT$-19 Mil. Its Operating Income was NT$128 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$500 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*128.409/-18.693
=6.87

Chen Nan Iron Wire Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Chen Nan Iron Wire Co's Interest Expense was NT$-9 Mil. Its Operating Income was NT$40 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$500 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*40.228/-9.109
=4.42

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 4.42 mean?
Chen Nan Iron Wire Co (ROCO:2071) has a Interest Coverage of 4.42 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Chen Nan Iron Wire Co and its competitors. This is near median its historical median of 4.75. Over the past decade, Chen Nan Iron Wire Co's Interest Coverage has ranged from 0.32 to 11.07. According to the industry distribution chart, Chen Nan Iron Wire Co ranks #1542 out of 2322 companies in the Industrial Products industry, placing it in the top 66.4%.
Is Chen Nan Iron Wire Co's Interest Coverage too high?
Chen Nan Iron Wire Co's current Interest Coverage of 4.42 is near median its 10-year median of 4.75. Over the past 10 years, this metric has ranged from a low of 0.32 to a high of 11.07. The Industrial Products industry median Interest Coverage is 14.74. Chen Nan Iron Wire Co's value of 4.42 is 70% below this industry median. Based on the distribution chart, Chen Nan Iron Wire Co ranks #1542 out of 2322 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Chen Nan Iron Wire Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chen Nan Iron Wire Co's Interest Coverage compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Chen Nan Iron Wire Co ranks #1542 out of 2322 companies for Interest Coverage. This places Chen Nan Iron Wire Co in the lower half of its industry. The industry median Interest Coverage is 14.74. Chen Nan Iron Wire Co's value of 4.42 is 70% below this benchmark. Historically, Chen Nan Iron Wire Co's own Interest Coverage has ranged from 0.32 to 11.07 over the past decade. While the company's 10-year median is 4.75 vs. the industry median of 14.74, Chen Nan Iron Wire 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 an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.74, based on 2,322 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. Chen Nan Iron Wire Co's current Interest Coverage of 4.42 is 70% 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 Chen Nan Iron Wire Co and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chen Nan Iron Wire Co's current Interest Coverage is 4.42, which is near median its own 10-year median of 4.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chen Nan Iron Wire Co stock overvalued right now?
Based on GuruFocus' analysis, Chen Nan Iron Wire Co (ROCO:2071) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$22.58, compared to a current price of NT$36.00 — trading 59.4% above its estimated fair value. The current Interest Coverage is 4.42, which is near median its 10-year median of 4.75 and 70% below the Industrial Products industry median of 14.74. Chen Nan Iron Wire Co's overall GF Score™ is 79/100 with 7 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 Chen Nan Iron Wire Co (ROCO:2071), the current Interest Coverage is 4.42 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 Chen Nan Iron Wire Co (ROCO:2071) Overvalued in 2026?

Based on GuruFocus' analysis, Chen Nan Iron Wire Co stock appears to be overvalued. The current stock price of NT$36.00 is trading 59.4% above its estimated GF Value™ of NT$22.58. GuruFocus considers Chen Nan Iron Wire Co to be Significantly Overvalued.

Key valuation signals for ROCO:2071:

  • Interest Coverage: 4.42 (near median its 10-year median of 4.75)
  • GF Value™: NT$22.58 vs. price of NT$36.00 (59.4% above fair value)
  • GF Score™: 79/100 with 7 warning signs
  • Industry Position: 70% below the Industrial Products median (#1542 of 2322)

No single metric tells the full story. See the ROCO:2071 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Chen Nan Iron Wire Co Business Description

Address No.202, Lane 275, Shun-an Road, Luzhu District, Kaohsiung, TWN, 82150
Chen Nan Iron Wire Co Ltd is a Taiwan-based company engaged in providing products such as Self Drilling Screws, Roofing Screws, Chipboard Screws, Carbon Steel Wire, Alloy Wire, Bolts, and Nuts among others.
79GF Score

Get the complete analysis for ROCO:2071

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

NT$36.00
Price
NT$22.58
GF Value