Starlux Airlines CoTPE:2646 +0.24%48 Interest Coverage is 0.50 as of Dec. 2025, which is 58% below its 10-year median of 1.20. GuruFocus rates TPE:2646 with a GF Score™ of 48/100 and a GF Value™ of NT$31.65 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 838 Transportation companies, Starlux Airlines Co ranks worse than 89.5% 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. Starlux Airlines Co's
Operating Income
for the
three
months ended in Dec. 2025 was NT$177 Mil. Starlux Airlines Co's Interest Expense for the
three
months ended in Dec. 2025 was NT$-355 Mil.
Starlux Airlines Co's interest coverage for the quarter that ended in Dec. 2025 was 0.50.
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. Starlux Airlines Co Ltd interest coverage is 1.2, which is low.
The historical rank and industry rank for Starlux Airlines Co's Interest Coverage or its related term are showing as below:
TPE:2646'
s Interest Coverage Range Over the Past 10 Years
Min: 0.6 Med: 1.2 Max: 2.42
Current: 1.2
TPE:2646's Interest Coverage is ranked worse than 89.5% of 838
companies
in the Transportation industry
Industry Median: 5.72
vs TPE:2646: 1.20
Starlux Airlines Co (TPE:2646) 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 .
Starlux Airlines Co Interest Coverage Related Terms
Starlux Airlines Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Starlux Airlines 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:2646 vs DAL, UAL, LUV: Interest Coverage Comparison
For the Airlines subindustry, Starlux Airlines 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.
Starlux Airlines Co Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, Starlux Airlines Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Starlux Airlines 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.
Starlux Airlines Co (TPE:2646) has a Interest Coverage of 0.50 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Starlux Airlines Co and its competitors. This is 58% below median its historical median of 1.20. Over the past decade, Starlux Airlines Co's Interest Coverage has ranged from 0.60 to 2.42. According to the industry distribution chart, Starlux Airlines Co ranks #750 out of 838 companies in the Transportation industry, placing it in the top 89.5%.
Is Starlux Airlines Co's Interest Coverage too high?
Starlux Airlines Co's current Interest Coverage of 0.50 is 58% below median its 10-year median of 1.20. Over the past 10 years, this metric has ranged from a low of 0.60 to a high of 2.42. The Transportation industry median Interest Coverage is 5.72. Starlux Airlines Co's value of 0.50 is 91.3% below this industry median. Based on the distribution chart, Starlux Airlines Co ranks #750 out of 838 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Starlux Airlines Co has a GF Score™ of 48/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Starlux Airlines Co's Interest Coverage compare to DAL and UAL?
According to the Transportation industry distribution chart, Starlux Airlines Co ranks #750 out of 838 companies for Interest Coverage. This places Starlux Airlines Co in the lower half of its industry. The industry median Interest Coverage is 5.72. Starlux Airlines Co's value of 0.50 is 91.3% below this benchmark. Historically, Starlux Airlines Co's own Interest Coverage has ranged from 0.60 to 2.42 over the past decade. While the company's 10-year median is 1.20 vs. the industry median of 5.72, Starlux Airlines 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 Transportation company?
The median Interest Coverage among Transportation companies is 5.72, based on 838 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. Starlux Airlines Co's current Interest Coverage of 0.50 is 91.3% 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 Starlux Airlines Co and its competitors. For the Transportation industry, the median Interest Coverage is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Starlux Airlines Co's current Interest Coverage is 0.50, which is 58% below median its own 10-year median of 1.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Starlux Airlines Co stock overvalued right now?
Based on GuruFocus' analysis, Starlux Airlines Co (TPE:2646) is currently considered Possible Value Trap. The stock's GF Value™ is NT$31.65, compared to a current price of NT$21.10 — trading 33.3% below its estimated fair value. The current Interest Coverage is 0.50, which is 58% below median its 10-year median of 1.20 and 91.3% below the Transportation industry median of 5.72. Starlux Airlines Co's overall GF Score™ is 48/100 with 9 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 Starlux Airlines Co (TPE:2646), the current Interest Coverage is 0.50 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 Starlux Airlines Co (TPE:2646) Overvalued in 2026?
Based on GuruFocus' analysis, Starlux Airlines Co stock appears to be undervalued.
The current stock price of NT$21.10 is trading 33.3% below its estimated GF Value™ of NT$31.65.
GuruFocus considers Starlux Airlines Co to be Possible Value Trap.
Key valuation signals for TPE:2646:
Interest Coverage: 0.50 (58% below median its 10-year median of 1.20)
GF Value™: NT$31.65 vs. price of NT$21.10 (33.3% below fair value)
Industry Position: 91.3% below the Transportation median (#750 of 838)
No single metric tells the full story. See the TPE:2646 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Starlux Airlines Co Ltd is an airline company that offers airline services. The company provides civil air transportation, civil aviation personnel training, and other services. It offers flights to more than ten Northeast Asia, Southeast Asia, and Macau destinations. Geographically, the company generates maximum revenue from Taiwan, and the rest from Asia (excluding Taiwan), North America, and other regions.
48GF Score
Get the complete analysis for TPE:2646
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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