Cheng LoongTPE:1904 +0.23%72 Interest Coverage is 4.24 as of Dec. 2025, which is 9% below its 10-year median of 4.64. GuruFocus rates TPE:1904 with a GF Score™ of 72/100 and a GF Value™ of NT$25.96 (Modestly Undervalued). The stock has 12 warning signs investors should review. Among 182 Forest Products companies, Cheng Loong ranks worse than 65.38% 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. Cheng Loong's
Operating Income
for the
three
months ended in Dec. 2025 was NT$821 Mil. Cheng Loong's Interest Expense for the
three
months ended in Dec. 2025 was NT$-194 Mil.
Cheng Loong's interest coverage for the quarter that ended in Dec. 2025 was 4.24.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Cheng Loong Corp interest coverage is 2.23, which is low.
The historical rank and industry rank for Cheng Loong's Interest Coverage or its related term are showing as below:
TPE:1904'
s Interest Coverage Range Over the Past 10 Years
Min: 1.54 Med: 4.64 Max: 15.38
Current: 2.23
TPE:1904's Interest Coverage is ranked worse than 65.38% of 182
companies
in the Forest Products industry
Industry Median: 3.97
vs TPE:1904: 2.23
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 .
Cheng Loong Interest Coverage Related Terms
Cheng Loong Interest Coverage Historical Data
* Premium members only.
The historical data trend for Cheng Loong'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 Paper & Paper Products subindustry, Cheng Loong'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.
Cheng Loong Interest Coverage vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Cheng Loong's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Cheng Loong'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.
Cheng Loong (TPE:1904) has a Interest Coverage of 4.24 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cheng Loong and its competitors. This is near median its historical median of 4.64. Over the past decade, Cheng Loong's Interest Coverage has ranged from 1.54 to 15.38. According to the industry distribution chart, Cheng Loong ranks #119 out of 182 companies in the Forest Products industry, placing it in the top 65.4%.
Is Cheng Loong's Interest Coverage too high?
Cheng Loong's current Interest Coverage of 4.24 is near median its 10-year median of 4.64. Over the past 10 years, this metric has ranged from a low of 1.54 to a high of 15.38. The Forest Products industry median Interest Coverage is 3.97. Cheng Loong's value of 4.24 is 6.8% above this industry median. Based on the distribution chart, Cheng Loong ranks #119 out of 182 companies in the Forest Products industry, which is below the industry midpoint. Overall, Cheng Loong has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cheng Loong's Interest Coverage compare to competitors?
According to the Forest Products industry distribution chart, Cheng Loong ranks #119 out of 182 companies for Interest Coverage. This places Cheng Loong in the lower half of its industry. The industry median Interest Coverage is 3.97. Cheng Loong's value of 4.24 is 6.8% above this benchmark. Historically, Cheng Loong's own Interest Coverage has ranged from 1.54 to 15.38 over the past decade. While the company's 10-year median is 4.64 vs. the industry median of 3.97, Cheng Loong 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 Forest Products company?
The median Interest Coverage among Forest Products companies is 3.97, based on 182 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. Cheng Loong's current Interest Coverage of 4.24 is 6.8% 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 Cheng Loong and its competitors. For the Forest Products industry, the median Interest Coverage is 3.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cheng Loong's current Interest Coverage is 4.24, which is near median its own 10-year median of 4.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cheng Loong stock overvalued right now?
Based on GuruFocus' analysis, Cheng Loong (TPE:1904) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$25.96, compared to a current price of NT$21.40 — trading 17.6% below its estimated fair value. The current Interest Coverage is 4.24, which is near median its 10-year median of 4.64 and 6.8% above the Forest Products industry median of 3.97. Cheng Loong's overall GF Score™ is 72/100 with 12 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 Cheng Loong (TPE:1904), the current Interest Coverage is 4.24 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 Cheng Loong (TPE:1904) Overvalued in 2026?
Based on GuruFocus' analysis, Cheng Loong stock appears to be undervalued.
The current stock price of NT$21.40 is trading 17.6% below its estimated GF Value™ of NT$25.96.
GuruFocus considers Cheng Loong to be Modestly Undervalued.
Key valuation signals for TPE:1904:
Interest Coverage: 4.24 (near median its 10-year median of 4.64)
GF Value™: NT$25.96 vs. price of NT$21.40 (17.6% below fair value)
Industry Position: 6.8% above the Forest Products median (#119 of 182)
No single metric tells the full story. See the TPE:1904 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cheng Loong Corp manufactures and sells a variety of paper products. The company is engaged in the manufacturing and sale of paper products, materials for paper products, corrugated cartons, and related products. It is also engaged in building commercial and residential premises for rent and sale in partnership with construction companies. The company generates a majority of its revenue from the manufacturing and sale of industrial paper, corrugated containers, and related products. Its geographical segments are Taiwan, which generates key revenue, China, and Southeast Asia.
72GF Score
Get the complete analysis for TPE:1904
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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