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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. Cheng Fwa Industrial Co's
Operating Income
for the
three
months ended in Dec. 2025 was NT$-8 Mil. Cheng Fwa Industrial Co's Interest Expense for the
three
months ended in Dec. 2025 was NT$-1 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Cheng Fwa Industrial Co's Interest Coverage or its related term are showing as below:
ROCO:5426'
s Interest Coverage Range Over the Past 10 Years
Min: 21.38 Med: 48.2 Max: 4906
Current: 46.4
ROCO:5426's Interest Coverage is ranked better than 71.09% of 2321
companies
in the Industrial Products industry
Industry Median: 14.72
vs ROCO:5426: 46.40
Cheng Fwa Industrial Co (ROCO:5426) 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 .
Cheng Fwa Industrial Co Interest Coverage Related Terms
Cheng Fwa Industrial Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Cheng Fwa Industrial 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.
ROCO:5426 vs CRS, ATI, MLI: Interest Coverage Comparison
For the Metal Fabrication subindustry, Cheng Fwa Industrial 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.
Cheng Fwa Industrial Co Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cheng Fwa Industrial Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Cheng Fwa Industrial Co's Interest Coverage falls into.
Cheng Fwa Industrial 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:
Cheng Fwa Industrial Co did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Cheng Fwa Industrial Co (ROCO:5426) has a Interest Coverage of 0 (At Loss) as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cheng Fwa Industrial Co and its competitors. Over the past decade, Cheng Fwa Industrial Co's Interest Coverage has ranged from 21.38 to 4,906.00. According to the industry distribution chart, Cheng Fwa Industrial Co ranks #671 out of 2321 companies in the Industrial Products industry, placing it in the top 28.9%.
Is Cheng Fwa Industrial Co's Interest Coverage too high?
Cheng Fwa Industrial Co's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 21.38 to a high of 4,906.00. Based on the distribution chart, Cheng Fwa Industrial Co ranks #671 out of 2321 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Cheng Fwa Industrial Co has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cheng Fwa Industrial Co's Interest Coverage compare to CRS and ATI?
According to the Industrial Products industry distribution chart, Cheng Fwa Industrial Co ranks #671 out of 2321 companies for Interest Coverage. This puts Cheng Fwa Industrial Co in the upper half of its industry. The industry median Interest Coverage is 14.72. Historically, Cheng Fwa Industrial Co's own Interest Coverage has ranged from 21.38 to 4,906.00 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 Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.72, based on 2,321 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. 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 Cheng Fwa Industrial Co and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cheng Fwa Industrial Co's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cheng Fwa Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Cheng Fwa Industrial Co (ROCO:5426) is currently considered Fairly Valued. The stock's GF Value™ is NT$24.52, compared to a current price of NT$26.15 — trading 6.6% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Cheng Fwa Industrial Co's overall GF Score™ is 57/100 with 3 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 Cheng Fwa Industrial Co (ROCO:5426), the current Interest Coverage is 0 (At Loss) 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 Cheng Fwa Industrial Co (ROCO:5426) Overvalued in 2026?
Based on GuruFocus' analysis, Cheng Fwa Industrial Co stock appears to be overvalued.
The current stock price of NT$26.15 is trading 6.6% above its estimated GF Value™ of NT$24.52.
GuruFocus considers Cheng Fwa Industrial Co to be Fairly Valued.
Key valuation signals for ROCO:5426:
Interest Coverage: 0 (At Loss)
GF Value™: NT$24.52 vs. price of NT$26.15 (6.6% above fair value)
No single metric tells the full story. See the ROCO:5426 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cheng Fwa Industrial Co Ltd manufactures and supplies precision-stamped metal parts for the computer, telecommunication, networking, and electronic industries. Its products include computer casings and related components, precision stampings, server-side rails, and plastic injection molding solutions, among others. Their core services comprise the following main areas: design and engineering, rapid prototyping, tooling development, precision metal stamping, finishing processing, and plastic injection. Geographically, the Group generates maximum revenue from America, followed by Taiwan, Asia, and other regions.
57GF Score
Get the complete analysis for ROCO:5426
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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