Hsin Kuang Steel CoTPE:2031 -0.40%76 Interest Coverage is 2.56 as of Dec. 2025, which is 26% below its 10-year median of 3.46. GuruFocus rates TPE:2031 with a GF Score™ of 76/100 and a GF Value™ of NT$53.74 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 456 Steel companies, Hsin Kuang Steel Co ranks worse than 74.34% 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. Hsin Kuang Steel Co's
Operating Income
for the
three
months ended in Dec. 2025 was NT$246 Mil. Hsin Kuang Steel Co's Interest Expense for the
three
months ended in Dec. 2025 was NT$-96 Mil.
Hsin Kuang Steel Co's interest coverage for the quarter that ended in Dec. 2025 was 2.56.
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. Hsin Kuang Steel Co Ltd interest coverage is 2.13, which is low.
The historical rank and industry rank for Hsin Kuang Steel Co's Interest Coverage or its related term are showing as below:
TPE:2031'
s Interest Coverage Range Over the Past 10 Years
Min: 1.46 Med: 3.46 Max: 23.4
Current: 2.13
TPE:2031's Interest Coverage is ranked worse than 74.34% of 456
companies
in the Steel industry
Industry Median: 4.445
vs TPE:2031: 2.13
Hsin Kuang Steel Co (TPE:2031) 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 .
Hsin Kuang Steel Co Interest Coverage Related Terms
Hsin Kuang Steel Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hsin Kuang Steel 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.
TPE:2031 vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Hsin Kuang Steel 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.
Hsin Kuang Steel Co Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Hsin Kuang Steel Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hsin Kuang Steel Co'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.
Hsin Kuang Steel Co (TPE:2031) has a Interest Coverage of 2.56 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hsin Kuang Steel Co and its competitors. This is 26% below median its historical median of 3.46. Over the past decade, Hsin Kuang Steel Co's Interest Coverage has ranged from 1.46 to 23.40. According to the industry distribution chart, Hsin Kuang Steel Co ranks #339 out of 456 companies in the Steel industry, placing it in the top 74.3%.
Is Hsin Kuang Steel Co's Interest Coverage too high?
Hsin Kuang Steel Co's current Interest Coverage of 2.56 is 26% below median its 10-year median of 3.46. Over the past 10 years, this metric has ranged from a low of 1.46 to a high of 23.40. The Steel industry median Interest Coverage is 4.45. Hsin Kuang Steel Co's value of 2.56 is 42.4% below this industry median. Based on the distribution chart, Hsin Kuang Steel Co ranks #339 out of 456 companies in the Steel industry, which is below the industry midpoint. Overall, Hsin Kuang Steel Co has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hsin Kuang Steel Co's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Hsin Kuang Steel Co ranks #339 out of 456 companies for Interest Coverage. This places Hsin Kuang Steel Co in the lower half of its industry. The industry median Interest Coverage is 4.45. Hsin Kuang Steel Co's value of 2.56 is 42.4% below this benchmark. Historically, Hsin Kuang Steel Co's own Interest Coverage has ranged from 1.46 to 23.40 over the past decade. While the company's 10-year median is 3.46 vs. the industry median of 4.45, Hsin Kuang Steel 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 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. Hsin Kuang Steel Co's current Interest Coverage of 2.56 is 42.4% 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 Hsin Kuang Steel Co 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. Hsin Kuang Steel Co's current Interest Coverage is 2.56, which is 26% below median its own 10-year median of 3.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hsin Kuang Steel Co stock overvalued right now?
Based on GuruFocus' analysis, Hsin Kuang Steel Co (TPE:2031) is currently considered Possible Value Trap. The stock's GF Value™ is NT$53.74, compared to a current price of NT$37.70 — trading 29.8% below its estimated fair value. The current Interest Coverage is 2.56, which is 26% below median its 10-year median of 3.46 and 42.4% below the Steel industry median of 4.45. Hsin Kuang Steel Co's overall GF Score™ is 76/100 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 Hsin Kuang Steel Co (TPE:2031), the current Interest Coverage is 2.56 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 Hsin Kuang Steel Co (TPE:2031) Overvalued in 2026?
Based on GuruFocus' analysis, Hsin Kuang Steel Co stock appears to be undervalued.
The current stock price of NT$37.70 is trading 29.8% below its estimated GF Value™ of NT$53.74.
GuruFocus considers Hsin Kuang Steel Co to be Possible Value Trap.
Key valuation signals for TPE:2031:
Interest Coverage: 2.56 (26% below median its 10-year median of 3.46)
GF Value™: NT$53.74 vs. price of NT$37.70 (29.8% below fair value)
Industry Position: 42.4% below the Steel median (#339 of 456)
No single metric tells the full story. See the TPE:2031 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hsin Kuang Steel Co Ltd manufactures and sells steel products. The business activities of the group include cutting, stamping, and the sale of steel products, including steel coils, steel plates, stainless steel, alloy steel, special steel, and SuperDyma. Geographically, its business activities are carried out across Taiwan. The company operates in four segments, which include Steel - Direct Sales, Steel - Manufacturing Sales, Construction Projects, and Leases. The majority of its revenue is generated from the Steel-Direct Sales Segment. Geographically, operates in Taiwan.
76GF Score
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