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. Hai Kwang Enterprise's
Operating Income
for the
three
months ended in Dec. 2025 was NT$-60 Mil. Hai Kwang Enterprise's Interest Expense for the
three
months ended in Dec. 2025 was NT$-25 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Hai Kwang Enterprise's Interest Coverage or its related term are showing as below:
TPE:2038's Interest Coverage is not ranked *
in the Steel industry.
Industry Median: 4.445 * Ranked among companies with meaningful Interest Coverage only.
Hai Kwang Enterprise (TPE:2038) 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 .
Hai Kwang Enterprise Interest Coverage Related Terms
Hai Kwang Enterprise Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hai Kwang Enterprise'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:2038 vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Hai Kwang 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.
Hai Kwang Enterprise Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Hai Kwang Enterprise's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hai Kwang Enterprise's Interest Coverage falls into.
Hai Kwang 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:
Hai Kwang Enterprise did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Hai Kwang Enterprise (TPE:2038) has a Interest Coverage of 0 (At Loss) as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hai Kwang Enterprise and its competitors. According to the industry distribution chart, Hai Kwang Enterprise ranks #999999 out of 456 companies in the Steel industry.
Is Hai Kwang Enterprise's Interest Coverage too high?
Hai Kwang Enterprise's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Hai Kwang Enterprise ranks #999999 out of 456 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Hai Kwang Enterprise has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hai Kwang Enterprise's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Hai Kwang Enterprise ranks #999999 out of 456 companies for Interest Coverage. This places Hai Kwang Enterprise in the lower half of its industry. The industry median Interest Coverage is 4.45. 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. 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 Hai Kwang 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. Hai Kwang Enterprise's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hai Kwang Enterprise stock overvalued right now?
Based on GuruFocus' analysis, Hai Kwang Enterprise (TPE:2038) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$15.11, compared to a current price of NT$13.20 — trading 12.6% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Hai Kwang Enterprise's overall GF Score™ is 66/100 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 Hai Kwang Enterprise (TPE:2038), the current Interest Coverage is 0 (At Loss) 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 Hai Kwang Enterprise (TPE:2038) Overvalued in 2026?
Based on GuruFocus' analysis, Hai Kwang Enterprise stock appears to be undervalued.
The current stock price of NT$13.20 is trading 12.6% below its estimated GF Value™ of NT$15.11.
GuruFocus considers Hai Kwang Enterprise to be Modestly Undervalued.
Key valuation signals for TPE:2038:
Interest Coverage: 0 (At Loss)
GF Value™: NT$15.11 vs. price of NT$13.20 (12.6% below fair value)
No single metric tells the full story. See the TPE:2038 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hai Kwang Enterprise Corp is engaged in the manufacture, processing, sale, and trade of billets and reinforcing steel bars. The Company also engages in real estate rental and leasing. It operates through Hai Kwang Enterprise Co., Ltd and Zheng Tung (formerly E Chang), with Hai Kwang Enterprise Co., Ltd generating maximum revenue. The main operating location of the Company and its subsidiaries is Taiwan.
66GF Score
Get the complete analysis for TPE:2038
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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