Spectrum Electrics (ROCO:5381) Interest Coverage: 5.01 (As of Dec. 2025) — 37% Below Median


ROCO:5381 Spectrum Electrics Corp ROCO:5381
72 GF Score
Price NT$27.25
GF Value NT$40.91
Valuation Possible Value Trap
! 8 Warning Signs
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What is Spectrum Electrics Interest Coverage?

Spectrum Electrics ROCO:5381 72 Interest Coverage is 5.01 as of Dec. 2025, which is 37% below its 10-year median of 7.97. GuruFocus rates ROCO:5381 with a GF Score™ of 72/100 and a GF Value™ of NT$40.91 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,678 Hardware companies, Spectrum Electrics ranks worse than 60.91% 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. Spectrum Electrics's Operating Income for the three months ended in Dec. 2025 was NT$67 Mil. Spectrum Electrics's Interest Expense for the three months ended in Dec. 2025 was NT$-13 Mil. Spectrum Electrics's interest coverage for the quarter that ended in Dec. 2025 was 5.01. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Spectrum Electrics's Interest Coverage or its related term are showing as below:

ROCO:5381' s Interest Coverage Range Over the Past 10 Years
Min: 0.74   Med: 7.97   Max: 843.98
Current: 8.74


ROCO:5381's Interest Coverage is ranked worse than
60.91% of 1678 companies
in the Hardware industry
Industry Median: 13.645 vs ROCO:5381: 8.74

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


Spectrum Electrics  (ROCO:5381) 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 .


Spectrum Electrics Interest Coverage Related Terms


Spectrum Electrics Interest Coverage Historical Data

* Premium members only.

The historical data trend for Spectrum Electrics'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.

Spectrum Electrics Interest Coverage Chart

Spectrum Electrics 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 13.82 0.00 0.74 7.03 8.74

Spectrum Electrics Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 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 Premium Member Only 5.53 23.91 7.88 7.34 5.01

ROCO:5381 vs APH, GLW: Interest Coverage Comparison

For the Electronic Components subindustry, Spectrum Electrics'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.


Spectrum Electrics Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, Spectrum Electrics's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Spectrum Electrics's Interest Coverage falls into.


ROCO:5381
72GF Score
Spectrum Electrics Corp ROCO:5381
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Spectrum Electrics 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.

Spectrum Electrics'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, Spectrum Electrics's Interest Expense was NT$-36 Mil. Its Operating Income was NT$318 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$1,096 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*318.005/-36.37
=8.74

Spectrum Electrics's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the three months ended in Dec. 2025, Spectrum Electrics's Interest Expense was NT$-13 Mil. Its Operating Income was NT$67 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$1,096 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*66.856/-13.347
=5.01

* 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 5.01 mean?
Spectrum Electrics (ROCO:5381) has a Interest Coverage of 5.01 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Spectrum Electrics and its competitors. This is 37% below median its historical median of 7.97. Over the past decade, Spectrum Electrics' Interest Coverage has ranged from 0.74 to 843.98. According to the industry distribution chart, Spectrum Electrics ranks #1022 out of 1678 companies in the Hardware industry, placing it in the top 60.9%.
Is Spectrum Electrics' Interest Coverage too high?
Spectrum Electrics' current Interest Coverage of 5.01 is 37% below median its 10-year median of 7.97. Over the past 10 years, this metric has ranged from a low of 0.74 to a high of 843.98. The Hardware industry median Interest Coverage is 13.65. Spectrum Electrics' value of 5.01 is 63.3% below this industry median. Based on the distribution chart, Spectrum Electrics ranks #1022 out of 1678 companies in the Hardware industry, which is below the industry midpoint. Overall, Spectrum Electrics has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Spectrum Electrics' Interest Coverage compare to APH and GLW?
According to the Hardware industry distribution chart, Spectrum Electrics ranks #1022 out of 1678 companies for Interest Coverage. This places Spectrum Electrics in the lower half of its industry. The industry median Interest Coverage is 13.65. Spectrum Electrics' value of 5.01 is 63.3% below this benchmark. Historically, Spectrum Electrics' own Interest Coverage has ranged from 0.74 to 843.98 over the past decade. While the company's 10-year median is 7.97 vs. the industry median of 13.65, Spectrum Electrics 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 13.65, based on 1,678 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. Spectrum Electrics's current Interest Coverage of 5.01 is 63.3% 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 Spectrum Electrics and its competitors. For the Hardware industry, the median Interest Coverage is 13.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spectrum Electrics's current Interest Coverage is 5.01, which is 37% below median its own 10-year median of 7.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spectrum Electrics stock overvalued right now?
Based on GuruFocus' analysis, Spectrum Electrics (ROCO:5381) is currently considered Possible Value Trap. The stock's GF Value™ is NT$40.91, compared to a current price of NT$27.25 — trading 33.4% below its estimated fair value. The current Interest Coverage is 5.01, which is 37% below median its 10-year median of 7.97 and 63.3% below the Hardware industry median of 13.65. Spectrum Electrics' overall GF Score™ is 72/100 with 8 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 Spectrum Electrics (ROCO:5381), the current Interest Coverage is 5.01 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 Spectrum Electrics (ROCO:5381) Overvalued in 2026?

Based on GuruFocus' analysis, Spectrum Electrics stock appears to be undervalued. The current stock price of NT$27.25 is trading 33.4% below its estimated GF Value™ of NT$40.91. GuruFocus considers Spectrum Electrics to be Possible Value Trap.

Key valuation signals for ROCO:5381:

  • Interest Coverage: 5.01 (37% below median its 10-year median of 7.97)
  • GF Value™: NT$40.91 vs. price of NT$27.25 (33.4% below fair value)
  • GF Score™: 72/100 with 8 warning signs
  • Industry Position: 63.3% below the Hardware median (#1022 of 1678)

No single metric tells the full story. See the ROCO:5381 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Spectrum Electrics Business Description

Address No. 38-1, Dongyuan Road, Zhongli Industrial Park, Zhongli District, Taoyuan, TWN, 320
Spectrum Electrics Corp is engaged in the manufacturing, processing, research and development and sales of drilling lubricating aluminum cover plates (LAE), multilayer laminated substrates (MLB), and environmentally friendly melamine boards (drilling pads), as well as its invested businesses in beauty and skin care products.
72GF Score

Get the complete analysis for ROCO:5381

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

NT$27.25
Price
NT$40.91
GF Value