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. Lung Hwa Electronics Co's
Operating Income
for the
three
months ended in Dec. 2025 was NT$-23.4 Mil. Lung Hwa Electronics Co's Interest Expense for the
three
months ended in Dec. 2025 was NT$-1.2 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 Lung Hwa Electronics Co's Interest Coverage or its related term are showing as below:
TPE:2424's Interest Coverage is not ranked *
in the Hardware industry.
Industry Median: 13.73 * Ranked among companies with meaningful Interest Coverage only.
Lung Hwa Electronics Co (TPE:2424) 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 .
Lung Hwa Electronics Co Interest Coverage Related Terms
Lung Hwa Electronics Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Lung Hwa Electronics 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.
For the Consumer Electronics subindustry, Lung Hwa Electronics 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.
Lung Hwa Electronics Co Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Lung Hwa Electronics Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Lung Hwa Electronics Co's Interest Coverage falls into.
Lung Hwa Electronics Co 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:
Lung Hwa Electronics Co 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?
Lung Hwa Electronics Co (TPE:2424) 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 Lung Hwa Electronics Co and its competitors. According to the industry distribution chart, Lung Hwa Electronics Co ranks #999999 out of 1672 companies in the Hardware industry.
Is Lung Hwa Electronics Co's Interest Coverage too high?
Lung Hwa Electronics Co's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Lung Hwa Electronics Co ranks #999999 out of 1672 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Lung Hwa Electronics Co has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Lung Hwa Electronics Co's Interest Coverage compare to AAPL?
According to the Hardware industry distribution chart, Lung Hwa Electronics Co ranks #999999 out of 1672 companies for Interest Coverage. This places Lung Hwa Electronics Co in the lower half of its industry. The industry median Interest Coverage is 13.73. 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.73, based on 1,672 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 Lung Hwa Electronics Co and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lung Hwa Electronics Co'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 Lung Hwa Electronics Co stock overvalued right now?
Based on GuruFocus' analysis, Lung Hwa Electronics Co (TPE:2424) is currently considered Possible Value Trap. The stock's GF Value™ is NT$56.99, compared to a current price of NT$9.99 — trading 82.5% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Lung Hwa Electronics Co's overall GF Score™ is 59/100 with 1 warning sign 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 Lung Hwa Electronics Co (TPE:2424), 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 Lung Hwa Electronics Co (TPE:2424) Overvalued in 2026?
Based on GuruFocus' analysis, Lung Hwa Electronics Co stock appears to be undervalued.
The current stock price of NT$9.99 is trading 82.5% below its estimated GF Value™ of NT$56.99.
GuruFocus considers Lung Hwa Electronics Co to be Possible Value Trap.
Key valuation signals for TPE:2424:
Interest Coverage: 0 (At Loss)
GF Value™: NT$56.99 vs. price of NT$9.99 (82.5% below fair value)
No single metric tells the full story. See the TPE:2424 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lung Hwa Electronics Co Ltd business items are the R&D, manufacturing and sales of smart home (portal security system), in-vehicle multimedia management system, fleet action control and management system, as well as industrial plant development, leasing and sales, maritime broadband data services, etc. The company's products are Maritime Network Architecture, 80cm KU-band maritime satellite antenna, 60cm Ku-band maritime satellite, L-Band Iridium Maritime Antenna, etc.
59GF Score
Get the complete analysis for TPE:2424
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TPE:2424 has been successfully added to your 
