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. Tung Ho Steel Enterprise's
Operating Income
for the
three
months ended in Dec. 2025 was NT$1,524 Mil. Tung Ho Steel Enterprise's Interest Expense for the
three
months ended in Dec. 2025 was NT$-47 Mil.
Tung Ho Steel Enterprise's interest coverage for the quarter that ended in Dec. 2025 was 32.11.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Tung Ho Steel Enterprise's Interest Coverage or its related term are showing as below:
TPE:2006'
s Interest Coverage Range Over the Past 10 Years
Min: 5.86 Med: 16.9 Max: 47.27
Current: 24.71
TPE:2006's Interest Coverage is ranked better than 78.51% of 456
companies
in the Steel industry
Industry Median: 4.445
vs TPE:2006: 24.71
Tung Ho Steel Enterprise (TPE:2006) 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 .
Tung Ho Steel Enterprise Interest Coverage Related Terms
Tung Ho Steel Enterprise 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.
TPE:2006 vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Tung Ho Steel Enterprise'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.
Tung Ho Steel Enterprise Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Tung Ho Steel Enterprise's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tung Ho Steel Enterprise's Interest Coverage falls into.
Tung Ho Steel Enterprise 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.
Tung Ho Steel Enterprise (TPE:2006) has a Interest Coverage of 32.11 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tung Ho Steel Enterprise and its competitors. This is 90% above median its historical median of 16.90. Over the past decade, Tung Ho Steel Enterprise's Interest Coverage has ranged from 5.86 to 47.27. According to the industry distribution chart, Tung Ho Steel Enterprise ranks #98 out of 456 companies in the Steel industry, placing it in the top 21.5%.
Is Tung Ho Steel Enterprise's Interest Coverage too high?
Tung Ho Steel Enterprise's current Interest Coverage of 32.11 is 90% above median its 10-year median of 16.90. Over the past 10 years, this metric has ranged from a low of 5.86 to a high of 47.27. The Steel industry median Interest Coverage is 4.45. Tung Ho Steel Enterprise's value of 32.11 is 622.4% above this industry median. Based on the distribution chart, Tung Ho Steel Enterprise ranks #98 out of 456 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Tung Ho Steel Enterprise has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tung Ho Steel Enterprise's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Tung Ho Steel Enterprise ranks #98 out of 456 companies for Interest Coverage. This places Tung Ho Steel Enterprise in the top 22% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 4.45. Tung Ho Steel Enterprise's value of 32.11 is 622.4% above this benchmark. Historically, Tung Ho Steel Enterprise's own Interest Coverage has ranged from 5.86 to 47.27 over the past decade. While the company's 10-year median is 16.90 vs. the industry median of 4.45, Tung Ho Steel Enterprise 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 Steel company?
The median Interest Coverage among Steel companies is 4.45, based on 456 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. Tung Ho Steel Enterprise's current Interest Coverage of 32.11 is 622.4% 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 Tung Ho Steel Enterprise and its competitors. For the Steel industry, the median Interest Coverage is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tung Ho Steel Enterprise's current Interest Coverage is 32.11, which is 90% above median its own 10-year median of 16.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tung Ho Steel Enterprise stock overvalued right now?
Based on GuruFocus' analysis, Tung Ho Steel Enterprise (TPE:2006) is currently considered Fairly Valued. The stock's GF Value™ is NT$64.08, compared to a current price of NT$69.40 — trading 8.3% above its estimated fair value. The current Interest Coverage is 32.11, which is 90% above median its 10-year median of 16.90 and 622.4% above the Steel industry median of 4.45. Tung Ho Steel Enterprise's overall GF Score™ is 88/100 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 Tung Ho Steel Enterprise (TPE:2006), the current Interest Coverage is 32.11 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 Tung Ho Steel Enterprise (TPE:2006) Overvalued in 2026?
Based on GuruFocus' analysis, Tung Ho Steel Enterprise stock appears to be overvalued.
The current stock price of NT$69.40 is trading 8.3% above its estimated GF Value™ of NT$64.08.
GuruFocus considers Tung Ho Steel Enterprise to be Fairly Valued.
Key valuation signals for TPE:2006:
Interest Coverage: 32.11 (90% above median its 10-year median of 16.90)
GF Value™: NT$64.08 vs. price of NT$69.40 (8.3% above fair value)
Industry Position: 622.4% above the Steel median (#98 of 456)
No single metric tells the full story. See the TPE:2006 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tung Ho Steel Enterprise Corp manufactures and sells Re-Bar, section, and plate. It processes, and sells reinforcing bars, flat iron, angle iron, wire rod, and other steel products; manufactures, processes, and sells structural steel, alloy steel, tool steel, high carbon steel, and other special steels; ship dismantling; used ship sales. Its segments include Steel segment including the Taipei headquarters, Taoyuan processing center, Taoyuan plant, Taichung port logistics center, Miaoli Plant, Kaohsiung plant and THSVC, engaged in the manufacture and sale of steel products; and Steel Structure segment including Tung Kang Steel Structure Corp, Tung Kang Engineering & Construction Corp, engaged in steel structure processing, steel structure engineering and civil construction engineering.
88GF Score
Get the complete analysis for TPE:2006
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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