E&R Engineering (ROCO:8027) Interest Coverage: 18.82 (As of Dec. 2025) — 14% Below Median

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ROCO:8027 E&R Engineering Corp ROCO:8027
40 GF Score
Price NT$239.00
GF Value NT$102.36
Valuation Significantly Overvalued
! 3 Warning Signs
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What is E&R Engineering Interest Coverage?

E&R Engineering ROCO:8027 -2.05% 40 Interest Coverage is 18.82 as of Dec. 2025, which is 14% below its 10-year median of 21.79. GuruFocus rates ROCO:8027 with a GF Score™ of 40/100 and a GF Value™ of NT$102.36 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,321 Industrial Products companies, E&R Engineering ranks worse than 43084.83% 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. E&R Engineering's Operating Income for the three months ended in Dec. 2025 was NT$70 Mil. E&R Engineering's Interest Expense for the three months ended in Dec. 2025 was NT$-4 Mil. E&R Engineering's interest coverage for the quarter that ended in Dec. 2025 was 18.82. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for E&R Engineering's Interest Coverage or its related term are showing as below:


ROCO:8027's Interest Coverage is not ranked *
in the Industrial Products industry.
Industry Median: 14.75
* Ranked among companies with meaningful Interest Coverage only.

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


E&R Engineering  (ROCO:8027) 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 .


E&R Engineering Interest Coverage Related Terms


E&R Engineering Interest Coverage Historical Data

* Premium members only.

The historical data trend for E&R Engineering'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.

E&R Engineering Interest Coverage Chart

E&R Engineering 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 49.94 31.32 0.60 0.00 0.00

E&R Engineering 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 0.00 0.00 0.00 0.00 18.82

ROCO:8027 vs GEV, ETN, PH: Interest Coverage Comparison

For the Specialty Industrial Machinery subindustry, E&R Engineering'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.


E&R Engineering Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, E&R Engineering's Interest Coverage distribution charts can be found below:

* The bar in red indicates where E&R Engineering's Interest Coverage falls into.


ROCO:8027
40GF Score
E&R Engineering Corp ROCO:8027
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

E&R Engineering 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.

E&R Engineering'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, E&R Engineering's Interest Expense was NT$-16 Mil. Its Operating Income was NT$-73 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$692 Mil.

E&R Engineering did not have earnings to cover the interest expense.

E&R Engineering's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the three months ended in Dec. 2025, E&R Engineering's Interest Expense was NT$-4 Mil. Its Operating Income was NT$70 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$692 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*69.646/-3.7
=18.82

* 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 18.82 mean?
E&R Engineering (ROCO:8027) has a Interest Coverage of 18.82 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on E&R Engineering and its competitors. This is 14% below median its historical median of 21.79. According to the industry distribution chart, E&R Engineering ranks #999999 out of 2321 companies in the Industrial Products industry.
Is E&R Engineering's Interest Coverage too high?
E&R Engineering's current Interest Coverage of 18.82 is 14% below median its 10-year median of 21.79. The Industrial Products industry median Interest Coverage is 14.75. E&R Engineering's value of 18.82 is 27.6% above this industry median. Based on the distribution chart, E&R Engineering ranks #999999 out of 2321 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, E&R Engineering has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does E&R Engineering's Interest Coverage compare to GEV and ETN?
According to the Industrial Products industry distribution chart, E&R Engineering ranks #999999 out of 2321 companies for Interest Coverage. This places E&R Engineering in the lower half of its industry. The industry median Interest Coverage is 14.75. E&R Engineering's value of 18.82 is 27.6% above this benchmark. While the company's 10-year median is 21.79 vs. the industry median of 14.75, E&R Engineering 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 an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.75, 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. E&R Engineering's current Interest Coverage of 18.82 is 27.6% 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 E&R Engineering and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. E&R Engineering's current Interest Coverage is 18.82, which is 14% below median its own 10-year median of 21.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is E&R Engineering stock overvalued right now?
Based on GuruFocus' analysis, E&R Engineering (ROCO:8027) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$102.36, compared to a current price of NT$239.00 — trading 133.5% above its estimated fair value. The current Interest Coverage is 18.82, which is 14% below median its 10-year median of 21.79 and 27.6% above the Industrial Products industry median of 14.75. E&R Engineering's overall GF Score™ is 40/100 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 E&R Engineering (ROCO:8027), the current Interest Coverage is 18.82 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 E&R Engineering (ROCO:8027) Overvalued in 2026?

Based on GuruFocus' analysis, E&R Engineering stock appears to be overvalued. The current stock price of NT$239.00 is trading 133.5% above its estimated GF Value™ of NT$102.36. GuruFocus considers E&R Engineering to be Significantly Overvalued.

Key valuation signals for ROCO:8027:

  • Interest Coverage: 18.82 (14% below median its 10-year median of 21.79)
  • GF Value™: NT$102.36 vs. price of NT$239.00 (133.5% above fair value)
  • GF Score™: 40/100 with 3 warning signs
  • Industry Position: 27.6% above the Industrial Products median (#999999 of 2321)

No single metric tells the full story. See the ROCO:8027 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


E&R Engineering Business Description

Address Hengshan Road, No. 61, Yanchao District, Kaohsiung, TWN, 824
E&R Engineering Corp engages mainly in the planning, designing, manufacturing, installing, and selling of automatic machines, related components, computer software, and pollution control equipment. Its main product offerings include laser and plasma equipment for semiconductor, LED, and passive component industries; laboratory testing equipment, flexible printed circuit equipment, and semiconductor packaging solutions. The Group operates in the following reportable segments: Automation Equipment, which generates the maximum revenue, Flexible Printed Circuit (FPC), Semiconductor Packaging Materials, and Others. Geographically, it generates maximum revenue from Taiwan, and the rest from Hong Kong and Mainland China, Southeast Asia, America, Europe, and other regions.
40GF Score

Get the complete analysis for ROCO:8027

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

NT$239.00
Price
NT$102.36
GF Value