TowaTOWCF -3.05%64 Interest Coverage is 53.03 as of Mar. 2026, which is 42% below its 10-year median of 91.34. GuruFocus rates TOWCF with a GF Score™ of 64/100 and a GF Value™ of $12.48 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 638 Semiconductors companies, Towa ranks better than 60.34% 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. Towa's
Operating Income
for the
three
months ended in Mar. 2026 was $20.4 Mil. Towa's Interest Expense for the
three
months ended in Mar. 2026 was $-0.4 Mil.
Towa's interest coverage for the quarter that ended in Mar. 2026 was 53.03.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Towa's Interest Coverage or its related term are showing as below:
TOWCF'
s Interest Coverage Range Over the Past 10 Years
Min: 16.3 Med: 91.34 Max: 219.74
Current: 41.08
TOWCF's Interest Coverage is ranked better than 60.34% of 638
companies
in the Semiconductors industry
Industry Median: 20.225
vs TOWCF: 41.08
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 .
Towa Interest Coverage Related Terms
Towa Interest Coverage Historical Data
* Premium members only.
The historical data trend for Towa'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.
TOWCF vs LRCX, AMAT, KLAC: Interest Coverage Comparison
For the Semiconductor Equipment & Materials subindustry, Towa'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.
Towa Interest Coverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Towa's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Towa's Interest Coverage falls into.
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:
* 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.
Towa (TOWCF) has a Interest Coverage of 53.03 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Towa and its competitors. This is 42% below median its historical median of 91.34. Over the past decade, Towa's Interest Coverage has ranged from 16.30 to 219.74. According to the industry distribution chart, Towa ranks #253 out of 638 companies in the Semiconductors industry, placing it in the top 39.7%.
Is Towa's Interest Coverage too high?
Towa's current Interest Coverage of 53.03 is 42% below median its 10-year median of 91.34. Over the past 10 years, this metric has ranged from a low of 16.30 to a high of 219.74. The Semiconductors industry median Interest Coverage is 20.23. Towa's value of 53.03 is 162.2% above this industry median. Based on the distribution chart, Towa ranks #253 out of 638 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Towa has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Towa's Interest Coverage compare to LRCX and AMAT?
According to the Semiconductors industry distribution chart, Towa ranks #253 out of 638 companies for Interest Coverage. This puts Towa in the upper half of its industry. The industry median Interest Coverage is 20.23. Towa's value of 53.03 is 162.2% above this benchmark. Historically, Towa's own Interest Coverage has ranged from 16.30 to 219.74 over the past decade. While the company's 10-year median is 91.34 vs. the industry median of 20.23, Towa 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 Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.23, based on 638 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. Towa's current Interest Coverage of 53.03 is 162.2% 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 Towa and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Towa's current Interest Coverage is 53.03, which is 42% below median its own 10-year median of 91.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Towa stock overvalued right now?
Based on GuruFocus' analysis, Towa (TOWCF) is currently considered Significantly Overvalued. The stock's GF Value™ is $12.48, compared to a current price of $19.62 — trading 57.2% above its estimated fair value. The current Interest Coverage is 53.03, which is 42% below median its 10-year median of 91.34 and 162.2% above the Semiconductors industry median of 20.23. Towa's overall GF Score™ is 64/100 with 9 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 Towa (TOWCF), the current Interest Coverage is 53.03 as of Mar. 2026. 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 Towa (TOWCF) Overvalued in 2026?
Based on GuruFocus' analysis, Towa stock appears to be overvalued.
The current stock price of $19.62 is trading 57.2% above its estimated GF Value™ of $12.48.
GuruFocus considers Towa to be Significantly Overvalued.
Key valuation signals for TOWCF:
Interest Coverage: 53.03 (42% below median its 10-year median of 91.34)
GF Value™: $12.48 vs. price of $19.62 (57.2% above fair value)
Industry Position: 162.2% above the Semiconductors median (#253 of 638)
No single metric tells the full story. See the TOWCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Towa Corp develops, manufactures and sells resin encapsulation systems for semiconductors and singulation systems. In addition, it also manufactures and sells precision molds for manufacturing semiconductors and plastic molded products. Its product portfolio is divided into two technologies molding including light-emitting diode, semiconductor, and sensors/module products and Singulation including semiconductor, and light-emitting diode-other applications. The company's segments include semiconductor equipment and fine plastic mold. The majority of the company revenue is derived from the sale of semiconductor equipment.
64GF Score
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