Te Chang (ROCO:5511) Interest Coverage: 136.08 (As of Dec. 2025) — 82% Above Median

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ROCO:5511 Te Chang ROCO:5511
87 GF Score
Price NT$69.10
GF Value NT$62.60
Valuation Fairly Valued
! 5 Warning Signs
View Full Analysis

What is Te Chang Interest Coverage?

Te Chang ROCO:5511 +1.77% 87 Interest Coverage is 136.08 as of Dec. 2025, which is 82% above its 10-year median of 74.66. GuruFocus rates ROCO:5511 with a GF Score™ of 87/100 and a GF Value™ of NT$62.60 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,359 Construction companies, Te Chang ranks better than 85.72% 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. Te Chang's Operating Income for the three months ended in Dec. 2025 was NT$520 Mil. Te Chang's Interest Expense for the three months ended in Dec. 2025 was NT$-4 Mil. Te Chang's interest coverage for the quarter that ended in Dec. 2025 was 136.08. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Te Chang has enough cash to cover all of its debt. Its financial situation is stable.

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

ROCO:5511' s Interest Coverage Range Over the Past 10 Years
Min: 36.2   Med: 74.66   Max: 127.59
Current: 97.14


ROCO:5511's Interest Coverage is ranked better than
85.72% of 1359 companies
in the Construction industry
Industry Median: 7.94 vs ROCO:5511: 97.14

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


Te Chang  (ROCO:5511) 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 .


Te Chang Interest Coverage Related Terms


Te Chang Interest Coverage Historical Data

* Premium members only.

The historical data trend for Te Chang'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.

Te Chang Interest Coverage Chart

Te Chang 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 49.60 52.14 88.93 61.56 97.14

Te Chang 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 48.62 39.77 90.98 119.92 136.08

ROCO:5511 vs PWR, FIX, EME: Interest Coverage Comparison

For the Engineering & Construction subindustry, Te Chang'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.


Te Chang Interest Coverage vs Construction Industry

For the Construction industry and Industrials sector, Te Chang's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Te Chang's Interest Coverage falls into.


ROCO:5511
87GF Score
Te Chang ROCO:5511
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Te Chang 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.

Te Chang'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, Te Chang's Interest Expense was NT$-15 Mil. Its Operating Income was NT$1,460 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$896 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*1459.771/-15.027
=97.14

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

Here, for the three months ended in Dec. 2025, Te Chang's Interest Expense was NT$-4 Mil. Its Operating Income was NT$520 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$896 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*519.96/-3.821
=136.08

* 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 136.08 mean?
Te Chang (ROCO:5511) has a Interest Coverage of 136.08 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Te Chang and its competitors. This is 82% above median its historical median of 74.66. Over the past decade, Te Chang's Interest Coverage has ranged from 36.20 to 127.59. According to the industry distribution chart, Te Chang ranks #194 out of 1359 companies in the Construction industry, placing it in the top 14.3%.
Is Te Chang's Interest Coverage too high?
Te Chang's current Interest Coverage of 136.08 is 82% above median its 10-year median of 74.66. Over the past 10 years, this metric has ranged from a low of 36.20 to a high of 127.59. The Construction industry median Interest Coverage is 7.94. Te Chang's value of 136.08 is 1613.9% above this industry median. Based on the distribution chart, Te Chang ranks #194 out of 1359 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Te Chang has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Te Chang's Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, Te Chang ranks #194 out of 1359 companies for Interest Coverage. This places Te Chang in the top 14% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 7.94. Te Chang's value of 136.08 is 1613.9% above this benchmark. Historically, Te Chang's own Interest Coverage has ranged from 36.20 to 127.59 over the past decade. While the company's 10-year median is 74.66 vs. the industry median of 7.94, Te Chang 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 Construction company?
The median Interest Coverage among Construction companies is 7.94, based on 1,359 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. Te Chang's current Interest Coverage of 136.08 is 1613.9% 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 Te Chang and its competitors. For the Construction industry, the median Interest Coverage is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Te Chang's current Interest Coverage is 136.08, which is 82% above median its own 10-year median of 74.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Te Chang stock overvalued right now?
Based on GuruFocus' analysis, Te Chang (ROCO:5511) is currently considered Fairly Valued. The stock's GF Value™ is NT$62.60, compared to a current price of NT$69.10 — trading 10.4% above its estimated fair value. The current Interest Coverage is 136.08, which is 82% above median its 10-year median of 74.66 and 1613.9% above the Construction industry median of 7.94. Te Chang's overall GF Score™ is 87/100 with 5 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 Te Chang (ROCO:5511), the current Interest Coverage is 136.08 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 Te Chang (ROCO:5511) Overvalued in 2026?

Based on GuruFocus' analysis, Te Chang stock appears to be overvalued. The current stock price of NT$69.10 is trading 10.4% above its estimated GF Value™ of NT$62.60. GuruFocus considers Te Chang to be Fairly Valued.

Key valuation signals for ROCO:5511:

  • Interest Coverage: 136.08 (82% above median its 10-year median of 74.66)
  • GF Value™: NT$62.60 vs. price of NT$69.10 (10.4% above fair value)
  • GF Score™: 87/100 with 5 warning signs
  • Industry Position: 1613.9% above the Construction median (#194 of 1359)

No single metric tells the full story. See the ROCO:5511 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Te Chang Business Description

Address Wuquan Road, 1st Floor, No.401-1, North District, Taichung, TWN, 40458
Te Chang main business operations include contracting for construction and civil engineering projects. The Group is engaged in the construction and real estate leasing business and is a single reportable segment. The company has presence in Taiwan, and Thailand. The company generates majority of revenue from Taiwan. The company's projects are Hospital Project, School Project, social housing, Factory building project, Commercial buildings, office building, civil Engineering, Other projects.
87GF Score

Get the complete analysis for ROCO:5511

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

NT$69.10
Price
NT$62.60
GF Value