Faraday Technology (TPE:3035) Interest Coverage: 40.55 (As of Mar. 2026) — 78% Below Median

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TPE:3035 Faraday Technology Corp TPE:3035
95 GF Score
Price NT$207.00
GF Value NT$268.93
Valuation Modestly Undervalued
! 9 Warning Signs
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What is Faraday Technology Interest Coverage?

Faraday Technology TPE:3035 95 Interest Coverage is 40.55 as of Mar. 2026, which is 78% below its 10-year median of 186.86. GuruFocus rates TPE:3035 with a GF Score™ of 95/100 and a GF Value™ of NT$268.93 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 637 Semiconductors companies, Faraday Technology ranks better than 52.75% 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. Faraday Technology's Operating Income for the three months ended in Mar. 2026 was NT$102 Mil. Faraday Technology's Interest Expense for the three months ended in Mar. 2026 was NT$-3 Mil. Faraday Technology's interest coverage for the quarter that ended in Mar. 2026 was 40.55. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Faraday Technology's Interest Coverage or its related term are showing as below:

TPE:3035' s Interest Coverage Range Over the Past 10 Years
Min: 24.64   Med: 186.86   Max: No Debt
Current: 24.64


TPE:3035's Interest Coverage is ranked better than
52.75% of 637 companies
in the Semiconductors industry
Industry Median: 20.5 vs TPE:3035: 24.64

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Faraday Technology  (TPE:3035) 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 .


Faraday Technology Interest Coverage Related Terms


Faraday Technology Interest Coverage Historical Data

* Premium members only.

The historical data trend for Faraday Technology'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.

Faraday Technology Interest Coverage Chart

Faraday Technology Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 226.29 461.04 147.43 98.06 52.77

Faraday Technology Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 150.81 11.72 13.76 32.58 40.55

TPE:3035 vs AMAT, LRCX, KLAC: Interest Coverage Comparison

For the Semiconductor Equipment & Materials subindustry, Faraday Technology'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.


Faraday Technology Interest Coverage vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Faraday Technology's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Faraday Technology's Interest Coverage falls into.


TPE:3035
95GF Score
Faraday Technology Corp TPE:3035
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Faraday Technology 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Faraday Technology's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Faraday Technology's Interest Expense was NT$-10 Mil. Its Operating Income was NT$534 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$269 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*533.763/-10.114
=52.77

Faraday Technology's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Faraday Technology's Interest Expense was NT$-3 Mil. Its Operating Income was NT$102 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$281 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*102.185/-2.52
=40.55

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 40.55 mean?
Faraday Technology (TPE:3035) has a Interest Coverage of 40.55 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Faraday Technology and its competitors. This is 78% below median its historical median of 186.86. Over the past decade, Faraday Technology's Interest Coverage has ranged from 24.64 to 10,000.00. According to the industry distribution chart, Faraday Technology ranks #301 out of 637 companies in the Semiconductors industry, placing it in the top 47.3%.
Is Faraday Technology's Interest Coverage too high?
Faraday Technology's current Interest Coverage of 40.55 is 78% below median its 10-year median of 186.86. Over the past 10 years, this metric has ranged from a low of 24.64 to a high of 10,000.00. The Semiconductors industry median Interest Coverage is 20.50. Faraday Technology's value of 40.55 is 97.8% above this industry median. Based on the distribution chart, Faraday Technology ranks #301 out of 637 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Faraday Technology has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Faraday Technology's Interest Coverage compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Faraday Technology ranks #301 out of 637 companies for Interest Coverage. This puts Faraday Technology in the upper half of its industry. The industry median Interest Coverage is 20.50. Faraday Technology's value of 40.55 is 97.8% above this benchmark. Historically, Faraday Technology's own Interest Coverage has ranged from 24.64 to 10,000.00 over the past decade. While the company's 10-year median is 186.86 vs. the industry median of 20.50, Faraday Technology 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 20.50, based on 637 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. Faraday Technology's current Interest Coverage of 40.55 is 97.8% 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 Faraday Technology and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Faraday Technology's current Interest Coverage is 40.55, which is 78% below median its own 10-year median of 186.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Faraday Technology stock overvalued right now?
Based on GuruFocus' analysis, Faraday Technology (TPE:3035) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$268.93, compared to a current price of NT$207.00 — trading 23% below its estimated fair value. The current Interest Coverage is 40.55, which is 78% below median its 10-year median of 186.86 and 97.8% above the Semiconductors industry median of 20.50. Faraday Technology's overall GF Score™ is 95/100 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 Faraday Technology (TPE:3035), the current Interest Coverage is 40.55 as of Mar. 2026. 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 Faraday Technology (TPE:3035) Overvalued in 2026?

Based on GuruFocus' analysis, Faraday Technology stock appears to be undervalued. The current stock price of NT$207.00 is trading 23% below its estimated GF Value™ of NT$268.93. GuruFocus considers Faraday Technology to be Modestly Undervalued.

Key valuation signals for TPE:3035:

  • Interest Coverage: 40.55 (78% below median its 10-year median of 186.86)
  • GF Value™: NT$268.93 vs. price of NT$207.00 (23% below fair value)
  • GF Score™: 95/100 with 9 warning signs
  • Industry Position: 97.8% above the Semiconductors median (#301 of 637)

No single metric tells the full story. See the TPE:3035 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Faraday Technology Business Description

Address Li-Hsin Road III, No. 5, Hsinchu Science Park, Hsinchu, TWN, 30078
Faraday Technology Corp is a fabless ASIC vendor and silicon intellectual property and system platform provider. It offers a comprehensive range of ASIC solutions, including total 3DIC packaging, Neoverse CSS design, FPGA-Go-ASIC, and design implementation services. Furthermore, its silicon IP portfolio encompasses a wide array of offerings, such as I/O, Cell Library, Memory Compiler, ARM-compliant CPUs, USB 3.1/2.0, 10/100 Ethernet, Giga Ethernet, SATA3/2, etc. Faraday generates revenue from the sale of goods, the rendering of services, and silicon intellectual property licenses. Geographically, the company generates maximum revenue from Taiwan, and the rest from China, Singapore, the United States, Japan, and other markets.
95GF Score

Get the complete analysis for TPE:3035

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$207.00
Price
NT$268.93
GF Value