Formosan Union ChemicalTPE:1709 +1.19%79 Interest Coverage is 21.00 as of Dec. 2025, which is 23% below its 10-year median of 27.13. GuruFocus rates TPE:1709 with a GF Score™ of 79/100 and a GF Value™ of NT$18.58 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,234 Chemicals companies, Formosan Union Chemical ranks better than 59.56% 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. Formosan Union Chemical's
Operating Income
for the
three
months ended in Dec. 2025 was NT$169 Mil. Formosan Union Chemical's Interest Expense for the
three
months ended in Dec. 2025 was NT$-8 Mil.
Formosan Union Chemical's interest coverage for the quarter that ended in Dec. 2025 was 21.00.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Formosan Union Chemical's Interest Coverage or its related term are showing as below:
TPE:1709'
s Interest Coverage Range Over the Past 10 Years
Min: 9.17 Med: 27.13 Max: 93.68
Current: 16.83
TPE:1709's Interest Coverage is ranked better than 59.56% of 1234
companies
in the Chemicals industry
Industry Median: 10.18
vs TPE:1709: 16.83
Formosan Union Chemical (TPE:1709) 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 .
Formosan Union Chemical Interest Coverage Related Terms
Formosan Union Chemical Interest Coverage Historical Data
* Premium members only.
The historical data trend for Formosan Union Chemical'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.
For the Chemicals subindustry, Formosan Union Chemical'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.
Formosan Union Chemical Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Formosan Union Chemical's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Formosan Union Chemical's Interest Coverage falls into.
Formosan Union Chemical 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:
* 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.
Formosan Union Chemical (TPE:1709) has a Interest Coverage of 21.00 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Formosan Union Chemical and its competitors. This is 23% below median its historical median of 27.13. Over the past decade, Formosan Union Chemical's Interest Coverage has ranged from 9.17 to 93.68. According to the industry distribution chart, Formosan Union Chemical ranks #499 out of 1234 companies in the Chemicals industry, placing it in the top 40.4%.
Is Formosan Union Chemical's Interest Coverage too high?
Formosan Union Chemical's current Interest Coverage of 21.00 is 23% below median its 10-year median of 27.13. Over the past 10 years, this metric has ranged from a low of 9.17 to a high of 93.68. The Chemicals industry median Interest Coverage is 10.18. Formosan Union Chemical's value of 21.00 is 106.3% above this industry median. Based on the distribution chart, Formosan Union Chemical ranks #499 out of 1234 companies in the Chemicals industry, which is above the industry midpoint. Overall, Formosan Union Chemical has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosan Union Chemical's Interest Coverage compare to DOW?
According to the Chemicals industry distribution chart, Formosan Union Chemical ranks #499 out of 1234 companies for Interest Coverage. This puts Formosan Union Chemical in the upper half of its industry. The industry median Interest Coverage is 10.18. Formosan Union Chemical's value of 21.00 is 106.3% above this benchmark. Historically, Formosan Union Chemical's own Interest Coverage has ranged from 9.17 to 93.68 over the past decade. While the company's 10-year median is 27.13 vs. the industry median of 10.18, Formosan Union Chemical 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.18, based on 1,234 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. Formosan Union Chemical's current Interest Coverage of 21.00 is 106.3% 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 Formosan Union Chemical and its competitors. For the Chemicals industry, the median Interest Coverage is 10.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosan Union Chemical's current Interest Coverage is 21.00, which is 23% below median its own 10-year median of 27.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosan Union Chemical stock overvalued right now?
Based on GuruFocus' analysis, Formosan Union Chemical (TPE:1709) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$18.58, compared to a current price of NT$21.30 — trading 14.6% above its estimated fair value. The current Interest Coverage is 21.00, which is 23% below median its 10-year median of 27.13 and 106.3% above the Chemicals industry median of 10.18. Formosan Union Chemical's overall GF Score™ is 79/100 with 6 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 Formosan Union Chemical (TPE:1709), the current Interest Coverage is 21.00 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 Formosan Union Chemical (TPE:1709) Overvalued in 2026?
Based on GuruFocus' analysis, Formosan Union Chemical stock appears to be overvalued.
The current stock price of NT$21.30 is trading 14.6% above its estimated GF Value™ of NT$18.58.
GuruFocus considers Formosan Union Chemical to be Modestly Overvalued.
Key valuation signals for TPE:1709:
Interest Coverage: 21.00 (23% below median its 10-year median of 27.13)
GF Value™: NT$18.58 vs. price of NT$21.30 (14.6% above fair value)
Industry Position: 106.3% above the Chemicals median (#499 of 1234)
No single metric tells the full story. See the TPE:1709 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosan Union Chemical Corp is a Taiwan-based company principally engaged in the production, processing, and trading of chemical products. Its key products are alkyl benzene, nonyl phenol, and hydrogenated hydrocarbon resin and its derivatives. The products are mainly used as raw materials for detergents, surfactants, rubbers, and plastic anti-oxidant agents, among others.
79GF Score
Get the complete analysis for TPE:1709
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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