Teco Electric & Machinery Co (TPE:1504) Interest Coverage: 7.34 (As of Dec. 2025) — 52% Below Median


TPE:1504 Teco Electric & Machinery Co Ltd TPE:1504
76 GF Score
Price NT$67.90
GF Value NT$54.15
Valuation Modestly Overvalued
! 3 Warning Signs
View Full Analysis

What is Teco Electric & Machinery Co Interest Coverage?

Teco Electric & Machinery Co TPE:1504 -4.50% 76 Interest Coverage is 7.34 as of Dec. 2025, which is 52% below its 10-year median of 15.42. GuruFocus rates TPE:1504 with a GF Score™ of 76/100 and a GF Value™ of NT$54.15 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,324 Industrial Products companies, Teco Electric & Machinery Co ranks worse than 54.73% 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. Teco Electric & Machinery Co's Operating Income for the three months ended in Dec. 2025 was NT$1,040 Mil. Teco Electric & Machinery Co's Interest Expense for the three months ended in Dec. 2025 was NT$-142 Mil. Teco Electric & Machinery Co's interest coverage for the quarter that ended in Dec. 2025 was 7.34. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Teco Electric & Machinery Co's Interest Coverage or its related term are showing as below:

TPE:1504' s Interest Coverage Range Over the Past 10 Years
Min: 12.02   Med: 15.42   Max: 25.16
Current: 12.02


TPE:1504's Interest Coverage is ranked worse than
54.73% of 2324 companies
in the Industrial Products industry
Industry Median: 14.835 vs TPE:1504: 12.02

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


Teco Electric & Machinery Co  (TPE:1504) 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 .


Teco Electric & Machinery Co Interest Coverage Related Terms


Teco Electric & Machinery Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Teco Electric & Machinery 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.

Teco Electric & Machinery Co Interest Coverage Chart

Teco Electric & Machinery Co 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 18.49 25.16 20.77 16.54 12.02

Teco Electric & Machinery Co 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 14.82 12.38 16.68 13.83 7.34

TPE:1504 vs GEV, ETN, PH: Interest Coverage Comparison

For the Specialty Industrial Machinery subindustry, Teco Electric & Machinery 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.


Teco Electric & Machinery Co Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Teco Electric & Machinery Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Teco Electric & Machinery Co's Interest Coverage falls into.


TPE:1504
76GF Score
Teco Electric & Machinery Co Ltd TPE:1504
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Teco Electric & Machinery 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:

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.

Teco Electric & Machinery Co'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, Teco Electric & Machinery Co's Interest Expense was NT$-443 Mil. Its Operating Income was NT$5,324 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$12,189 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*5324.368/-442.973
=12.02

Teco Electric & Machinery Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the three months ended in Dec. 2025, Teco Electric & Machinery Co's Interest Expense was NT$-142 Mil. Its Operating Income was NT$1,040 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$12,189 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*1039.765/-141.607
=7.34

* 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 7.34 mean?
Teco Electric & Machinery Co (TPE:1504) has a Interest Coverage of 7.34 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Teco Electric & Machinery Co and its competitors. This is 52% below median its historical median of 15.42. Over the past decade, Teco Electric & Machinery Co's Interest Coverage has ranged from 12.02 to 25.16. According to the industry distribution chart, Teco Electric & Machinery Co ranks #1272 out of 2324 companies in the Industrial Products industry, placing it in the top 54.7%.
Is Teco Electric & Machinery Co's Interest Coverage too high?
Teco Electric & Machinery Co's current Interest Coverage of 7.34 is 52% below median its 10-year median of 15.42. Over the past 10 years, this metric has ranged from a low of 12.02 to a high of 25.16. The Industrial Products industry median Interest Coverage is 14.84. Teco Electric & Machinery Co's value of 7.34 is 50.5% below this industry median. Based on the distribution chart, Teco Electric & Machinery Co ranks #1272 out of 2324 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Teco Electric & Machinery Co has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Teco Electric & Machinery Co's Interest Coverage compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Teco Electric & Machinery Co ranks #1272 out of 2324 companies for Interest Coverage. This places Teco Electric & Machinery Co in the lower half of its industry. The industry median Interest Coverage is 14.84. Teco Electric & Machinery Co's value of 7.34 is 50.5% below this benchmark. Historically, Teco Electric & Machinery Co's own Interest Coverage has ranged from 12.02 to 25.16 over the past decade. While the company's 10-year median is 15.42 vs. the industry median of 14.84, Teco Electric & Machinery Co has consistently been below 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 14.84, based on 2,324 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. Teco Electric & Machinery Co's current Interest Coverage of 7.34 is 50.5% below 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 Teco Electric & Machinery Co and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Teco Electric & Machinery Co's current Interest Coverage is 7.34, which is 52% below median its own 10-year median of 15.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Teco Electric & Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Teco Electric & Machinery Co (TPE:1504) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$54.15, compared to a current price of NT$67.90 — trading 25.4% above its estimated fair value. The current Interest Coverage is 7.34, which is 52% below median its 10-year median of 15.42 and 50.5% below the Industrial Products industry median of 14.84. Teco Electric & Machinery Co's overall GF Score™ is 76/100 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 Teco Electric & Machinery Co (TPE:1504), the current Interest Coverage is 7.34 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 Teco Electric & Machinery Co (TPE:1504) Overvalued in 2026?

Based on GuruFocus' analysis, Teco Electric & Machinery Co stock appears to be overvalued. The current stock price of NT$67.90 is trading 25.4% above its estimated GF Value™ of NT$54.15. GuruFocus considers Teco Electric & Machinery Co to be Modestly Overvalued.

Key valuation signals for TPE:1504:

  • Interest Coverage: 7.34 (52% below median its 10-year median of 15.42)
  • GF Value™: NT$54.15 vs. price of NT$67.90 (25.4% above fair value)
  • GF Score™: 76/100 with 3 warning signs
  • Industry Position: 50.5% below the Industrial Products median (#1272 of 2324)

No single metric tells the full story. See the TPE:1504 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Teco Electric & Machinery Co Business Description

Address No. 19-9, San Chong Road, Nan-Kang, 5th Floor, Taipei, TWN, 11501
Teco Electric & Machinery Co Ltd is a Taiwan-based company that manufactures and sells various types of mechanical equipment, air-conditioning units, and electronic equipment products. The company's Heavy industrial products, the product line by revenue contribution, are used in fluid machinery, elevators, cranes, petrochemical machinery, rolling mills, pumps, and various other machinery. The company's home appliance offerings comprise air conditioners, refrigerators, washing machines, televisions, air purifiers, and others. The company also provides automation products such as converters, servo controllers, and circuit breakers. The company generates the majority of its revenue from Taiwan.
76GF Score

Get the complete analysis for TPE:1504

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

NT$67.90
Price
NT$54.15
GF Value