RectronTPE:2302 -1.87%68 Interest Coverage is 569.34 as of Dec. 2025, which is 374% above its 10-year median of 120.03. GuruFocus rates TPE:2302 with a GF Score™ of 68/100 and a GF Value™ of NT$19.50 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 636 Semiconductors companies, Rectron ranks better than 89.62% 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. Rectron's
Operating Income
for the
three
months ended in Dec. 2025 was NT$23.3 Mil. Rectron's Interest Expense for the
three
months ended in Dec. 2025 was NT$-0.0 Mil.
Rectron's interest coverage for the quarter that ended in Dec. 2025 was 569.34.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Rectron Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Rectron's Interest Coverage or its related term are showing as below:
TPE:2302'
s Interest Coverage Range Over the Past 10 Years
Min: 5.82 Med: 120.03 Max: 661.94
Current: 661.94
TPE:2302's Interest Coverage is ranked better than 89.62% of 636
companies
in the Semiconductors industry
Industry Median: 20.225
vs TPE:2302: 661.94
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 .
Rectron Interest Coverage Related Terms
Rectron Interest Coverage Historical Data
* Premium members only.
The historical data trend for Rectron'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:2302 vs AMAT, LRCX, KLAC: Interest Coverage Comparison
For the Semiconductor Equipment & Materials subindustry, Rectron'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.
Rectron Interest Coverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Rectron's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Rectron'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.
Rectron (TPE:2302) has a Interest Coverage of 569.34 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Rectron and its competitors. This is 374% above median its historical median of 120.03. Over the past decade, Rectron's Interest Coverage has ranged from 5.82 to 661.94. According to the industry distribution chart, Rectron ranks #66 out of 636 companies in the Semiconductors industry, placing it in the top 10.4%.
Is Rectron's Interest Coverage too high?
Rectron's current Interest Coverage of 569.34 is 374% above median its 10-year median of 120.03. Over the past 10 years, this metric has ranged from a low of 5.82 to a high of 661.94. The Semiconductors industry median Interest Coverage is 20.23. Rectron's value of 569.34 is 2715% above this industry median. Based on the distribution chart, Rectron ranks #66 out of 636 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Rectron has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rectron's Interest Coverage compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Rectron ranks #66 out of 636 companies for Interest Coverage. This places Rectron in the top 10% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 20.23. Rectron's value of 569.34 is 2715% above this benchmark. Historically, Rectron's own Interest Coverage has ranged from 5.82 to 661.94 over the past decade. While the company's 10-year median is 120.03 vs. the industry median of 20.23, Rectron 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 Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.23, based on 636 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. Rectron's current Interest Coverage of 569.34 is 2715% 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 Rectron and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rectron's current Interest Coverage is 569.34, which is 374% above median its own 10-year median of 120.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rectron stock overvalued right now?
Based on GuruFocus' analysis, Rectron (TPE:2302) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$19.50, compared to a current price of NT$47.10 — trading 141.5% above its estimated fair value. The current Interest Coverage is 569.34, which is 374% above median its 10-year median of 120.03 and 2715% above the Semiconductors industry median of 20.23. Rectron's overall GF Score™ is 68/100 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 Rectron (TPE:2302), the current Interest Coverage is 569.34 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 Rectron (TPE:2302) Overvalued in 2026?
Based on GuruFocus' analysis, Rectron stock appears to be overvalued.
The current stock price of NT$47.10 is trading 141.5% above its estimated GF Value™ of NT$19.50.
GuruFocus considers Rectron to be Significantly Overvalued.
Key valuation signals for TPE:2302:
Interest Coverage: 569.34 (374% above median its 10-year median of 120.03)
GF Value™: NT$19.50 vs. price of NT$47.10 (141.5% above fair value)
Industry Position: 2715% above the Semiconductors median (#66 of 636)
No single metric tells the full story. See the TPE:2302 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rectron Ltd is engaged in manufacturing and distributing silicon rectifiers and semiconductor components, rental and sale of real estate, trading of wines, and manufacturing and sale of medical equipment. The Group's reportable segments are: Electronics, Real Estate Investment, Medical Equipment, and Wine Trading. The majority of its revenue is generated from the Electronics segment, which is engaged in the manufacturing and sales of various rectifiers and other semiconductor components such as rectifier diodes, ESD Diodes, high-efficiency diodes, fast recovery diodes, bridge rectifiers, and transient voltage suppressors, among others. Geographically, the Group generates maximum revenue from China, followed by the Americas, Taiwan, Europe, and other regions.
68GF Score
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