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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. Chung Hwa Chemical Industrial Works's
Operating Income
for the
three
months ended in Mar. 2026 was NT$44 Mil. Chung Hwa Chemical Industrial Works's Interest Expense for the
three
months ended in Mar. 2026 was NT$-4 Mil.
Chung Hwa Chemical Industrial Works's interest coverage for the quarter that ended in Mar. 2026 was 10.60.
The higher the ratio, the stronger the company's financial strength is.
Chung Hwa Chemical Industrial Works (TPE:1727) 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 .
Chung Hwa Chemical Industrial Works Interest Coverage Related Terms
Chung Hwa Chemical Industrial Works Interest Coverage Historical Data
* 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.
Chung Hwa Chemical Industrial Works Interest Coverage Chart
For the Chemicals subindustry, Chung Hwa Chemical Industrial Works'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.
Chung Hwa Chemical Industrial Works Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Chung Hwa Chemical Industrial Works's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Chung Hwa Chemical Industrial Works's Interest Coverage falls into.
Chung Hwa Chemical Industrial Works 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.
Chung Hwa Chemical Industrial Works (TPE:1727) has a Interest Coverage of 10.60 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Chung Hwa Chemical Industrial Works and its competitors. This is 10% below median its historical median of 11.79. Over the past decade, Chung Hwa Chemical Industrial Works' Interest Coverage has ranged from 1.89 to 34.50. According to the industry distribution chart, Chung Hwa Chemical Industrial Works ranks #611 out of 1242 companies in the Chemicals industry, placing it in the top 49.2%.
Is Chung Hwa Chemical Industrial Works' Interest Coverage too high?
Chung Hwa Chemical Industrial Works' current Interest Coverage of 10.60 is 10% below median its 10-year median of 11.79. Over the past 10 years, this metric has ranged from a low of 1.89 to a high of 34.50. The Chemicals industry median Interest Coverage is 10.40. Chung Hwa Chemical Industrial Works' value of 10.60 is 2% above this industry median. Based on the distribution chart, Chung Hwa Chemical Industrial Works ranks #611 out of 1242 companies in the Chemicals industry, which is above the industry midpoint. Overall, Chung Hwa Chemical Industrial Works has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chung Hwa Chemical Industrial Works' Interest Coverage compare to DOW?
According to the Chemicals industry distribution chart, Chung Hwa Chemical Industrial Works ranks #611 out of 1242 companies for Interest Coverage. This puts Chung Hwa Chemical Industrial Works in the upper half of its industry. The industry median Interest Coverage is 10.40. Chung Hwa Chemical Industrial Works' value of 10.60 is 2% above this benchmark. Historically, Chung Hwa Chemical Industrial Works' own Interest Coverage has ranged from 1.89 to 34.50 over the past decade. While the company's 10-year median is 11.79 vs. the industry median of 10.40, Chung Hwa Chemical Industrial Works 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 10.40, based on 1,242 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. Chung Hwa Chemical Industrial Works's current Interest Coverage of 10.60 is 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 Chung Hwa Chemical Industrial Works and its competitors. For the Chemicals industry, the median Interest Coverage is 10.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chung Hwa Chemical Industrial Works's current Interest Coverage is 10.60, which is 10% below median its own 10-year median of 11.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chung Hwa Chemical Industrial Works stock overvalued right now?
Based on GuruFocus' analysis, Chung Hwa Chemical Industrial Works (TPE:1727) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$35.78, compared to a current price of NT$75.00 — trading 109.6% above its estimated fair value. The current Interest Coverage is 10.60, which is 10% below median its 10-year median of 11.79 and 2% above the Chemicals industry median of 10.40. Chung Hwa Chemical Industrial Works' overall GF Score™ is 47/100 with 8 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 Chung Hwa Chemical Industrial Works (TPE:1727), the current Interest Coverage is 10.60 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 Chung Hwa Chemical Industrial Works (TPE:1727) Overvalued in 2026?
Based on GuruFocus' analysis, Chung Hwa Chemical Industrial Works stock appears to be overvalued.
The current stock price of NT$75.00 is trading 109.6% above its estimated GF Value™ of NT$35.78.
GuruFocus considers Chung Hwa Chemical Industrial Works to be Significantly Overvalued.
Key valuation signals for TPE:1727:
Interest Coverage: 10.60 (10% below median its 10-year median of 11.79)
GF Value™: NT$35.78 vs. price of NT$75.00 (109.6% above fair value)
Industry Position: 2% above the Chemicals median (#611 of 1242)
No single metric tells the full story. See the TPE:1727 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chung Hwa Chemical Industrial Works Ltd operates as a chemical manufacturer. The company is engaged in the manufacturing and retail of sulfuric acid and other chemical industrial raw materials, and trading of finished products, and design of related chemical engineering, industrial investment, chemical raw materials, import and export trade, and agency distribution. The company single segment of Chemicals are further bifurcated as Basic chemicals, Specialty chemicals, and Electronic chemicals, out of which maximum revenue is generated from Basic chemicals.
47GF Score
Get the complete analysis for TPE:1727
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