Leo Systems (ROCO:5410) Interest Coverage: 148.16 (As of Dec. 2025) — 29% Above Median


ROCO:5410 Leo Systems Inc ROCO:5410
63 GF Score
Price NT$46.00
GF Value NT$27.33
Valuation Significantly Overvalued
! 7 Warning Signs
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What is Leo Systems Interest Coverage?

Leo Systems ROCO:5410 +3.49% 63 Interest Coverage is 148.16 as of Dec. 2025, which is 29% above its 10-year median of 114.89. GuruFocus rates ROCO:5410 with a GF Score™ of 63/100 and a GF Value™ of NT$27.33 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,671 Hardware companies, Leo Systems ranks better than 79.53% 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. Leo Systems's Operating Income for the three months ended in Dec. 2025 was NT$29 Mil. Leo Systems's Interest Expense for the three months ended in Dec. 2025 was NT$-0 Mil. Leo Systems's interest coverage for the quarter that ended in Dec. 2025 was 148.16. The higher the ratio, the stronger the company's financial strength is.

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

ROCO:5410' s Interest Coverage Range Over the Past 10 Years
Min: 35.49   Med: 114.89   Max: 307.35
Current: 83.99


ROCO:5410's Interest Coverage is ranked better than
79.53% of 1671 companies
in the Hardware industry
Industry Median: 13.67 vs ROCO:5410: 83.99

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


Leo Systems  (ROCO:5410) 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 .


Leo Systems Interest Coverage Related Terms


Leo Systems Interest Coverage Historical Data

* Premium members only.

The historical data trend for Leo Systems'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.

Leo Systems Interest Coverage Chart

Leo Systems 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 170.18 98.00 35.49 307.35 85.35

Leo Systems 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 422.10 100.55 67.66 75.19 148.16

ROCO:5410 vs SNDK, DELL, STX: Interest Coverage Comparison

For the Computer Hardware subindustry, Leo Systems'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.


Leo Systems Interest Coverage vs Hardware Industry

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

* The bar in red indicates where Leo Systems's Interest Coverage falls into.


ROCO:5410
63GF Score
Leo Systems Inc ROCO:5410
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Leo Systems 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.

Leo Systems'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, Leo Systems's Interest Expense was NT$-3 Mil. Its Operating Income was NT$221 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$7 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*221.304/-2.593
=85.35

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

Here, for the three months ended in Dec. 2025, Leo Systems's Interest Expense was NT$-0 Mil. Its Operating Income was NT$29 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$7 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*28.595/-0.193
=148.16

* 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 148.16 mean?
Leo Systems (ROCO:5410) has a Interest Coverage of 148.16 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Leo Systems and its competitors. This is 29% above median its historical median of 114.89. Over the past decade, Leo Systems' Interest Coverage has ranged from 35.49 to 307.35. According to the industry distribution chart, Leo Systems ranks #342 out of 1671 companies in the Hardware industry, placing it in the top 20.5%.
Is Leo Systems' Interest Coverage too high?
Leo Systems' current Interest Coverage of 148.16 is 29% above median its 10-year median of 114.89. Over the past 10 years, this metric has ranged from a low of 35.49 to a high of 307.35. The Hardware industry median Interest Coverage is 13.67. Leo Systems' value of 148.16 is 983.8% above this industry median. Based on the distribution chart, Leo Systems ranks #342 out of 1671 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Leo Systems has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leo Systems' Interest Coverage compare to SNDK and DELL?
According to the Hardware industry distribution chart, Leo Systems ranks #342 out of 1671 companies for Interest Coverage. This places Leo Systems in the top 21% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 13.67. Leo Systems' value of 148.16 is 983.8% above this benchmark. Historically, Leo Systems' own Interest Coverage has ranged from 35.49 to 307.35 over the past decade. While the company's 10-year median is 114.89 vs. the industry median of 13.67, Leo Systems has consistently been above 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 13.67, based on 1,671 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. Leo Systems's current Interest Coverage of 148.16 is 983.8% above 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 Leo Systems and its competitors. For the Hardware industry, the median Interest Coverage is 13.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leo Systems's current Interest Coverage is 148.16, which is 29% above median its own 10-year median of 114.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leo Systems stock overvalued right now?
Based on GuruFocus' analysis, Leo Systems (ROCO:5410) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$27.33, compared to a current price of NT$46.00 — trading 68.3% above its estimated fair value. The current Interest Coverage is 148.16, which is 29% above median its 10-year median of 114.89 and 983.8% above the Hardware industry median of 13.67. Leo Systems' overall GF Score™ is 63/100 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 Leo Systems (ROCO:5410), the current Interest Coverage is 148.16 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 Leo Systems (ROCO:5410) Overvalued in 2026?

Based on GuruFocus' analysis, Leo Systems stock appears to be overvalued. The current stock price of NT$46.00 is trading 68.3% above its estimated GF Value™ of NT$27.33. GuruFocus considers Leo Systems to be Significantly Overvalued.

Key valuation signals for ROCO:5410:

  • Interest Coverage: 148.16 (29% above median its 10-year median of 114.89)
  • GF Value™: NT$27.33 vs. price of NT$46.00 (68.3% above fair value)
  • GF Score™: 63/100 with 7 warning signs
  • Industry Position: 983.8% above the Hardware median (#342 of 1671)

No single metric tells the full story. See the ROCO:5410 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Leo Systems Business Description

Address 298 Yang Guang Street, 3rd Floor, Neihu District, Taipei, TWN, 11491
Leo Systems Inc is mainly engaged in the sales of information software and hardware products, software planning and design, computer hardware maintenance services, and system integration. The company's ,main business and products includes Sales of personal computer, Innovation of technology application and creation of operation service, Information integration service, Design and planning of construction, Investment business. The company has single reportable segment. The company's operation were mainly located in Taiwan.
63GF Score

Get the complete analysis for ROCO:5410

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

NT$46.00
Price
NT$27.33
GF Value