Shenmao Technology (TPE:3305) Interest Coverage: 5.97 (As of Dec. 2025) — 21% Below Median

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TPE:3305 Shenmao Technology Inc TPE:3305
74 GF Score
Price NT$123.50
GF Value NT$103.29
Valuation Modestly Overvalued
! 3 Warning Signs
View Full Analysis

What is Shenmao Technology Interest Coverage?

Shenmao Technology TPE:3305 -3.14% 74 Interest Coverage is 5.97 as of Dec. 2025, which is 21% below its 10-year median of 7.60. GuruFocus rates TPE:3305 with a GF Score™ of 74/100 and a GF Value™ of NT$103.29 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,678 Hardware companies, Shenmao Technology ranks worse than 66.75% 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. Shenmao Technology's Operating Income for the three months ended in Dec. 2025 was NT$192 Mil. Shenmao Technology's Interest Expense for the three months ended in Dec. 2025 was NT$-32 Mil. Shenmao Technology's interest coverage for the quarter that ended in Dec. 2025 was 5.97. The higher the ratio, the stronger the company's financial strength is.

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

TPE:3305' s Interest Coverage Range Over the Past 10 Years
Min: 4.31   Med: 7.6   Max: 27.69
Current: 6.88


TPE:3305's Interest Coverage is ranked worse than
66.75% of 1678 companies
in the Hardware industry
Industry Median: 13.645 vs TPE:3305: 6.88

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


Shenmao Technology  (TPE:3305) 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 .


Shenmao Technology Interest Coverage Related Terms


Shenmao Technology Interest Coverage Historical Data

* Premium members only.

The historical data trend for Shenmao 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.

Shenmao Technology Interest Coverage Chart

Shenmao 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 27.69 7.47 7.00 7.61 6.88

Shenmao Technology Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
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 6.16 6.19 6.70 8.42 5.97

TPE:3305 vs APH, GLW: Interest Coverage Comparison

For the Electronic Components subindustry, Shenmao 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.


Shenmao Technology Interest Coverage vs Hardware Industry

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

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


TPE:3305
74GF Score
Shenmao Technology Inc TPE:3305
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shenmao 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.

Shenmao 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, Shenmao Technology's Interest Expense was NT$-115 Mil. Its Operating Income was NT$794 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$989 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*793.74/-115.406
=6.88

Shenmao Technology's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the three months ended in Dec. 2025, Shenmao Technology's Interest Expense was NT$-32 Mil. Its Operating Income was NT$192 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$989 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*192.477/-32.24
=5.97

* 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 5.97 mean?
Shenmao Technology (TPE:3305) has a Interest Coverage of 5.97 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Shenmao Technology and its competitors. This is 21% below median its historical median of 7.60. Over the past decade, Shenmao Technology's Interest Coverage has ranged from 4.31 to 27.69. According to the industry distribution chart, Shenmao Technology ranks #1120 out of 1678 companies in the Hardware industry, placing it in the top 66.7%.
Is Shenmao Technology's Interest Coverage too high?
Shenmao Technology's current Interest Coverage of 5.97 is 21% below median its 10-year median of 7.60. Over the past 10 years, this metric has ranged from a low of 4.31 to a high of 27.69. The Hardware industry median Interest Coverage is 13.65. Shenmao Technology's value of 5.97 is 56.2% below this industry median. Based on the distribution chart, Shenmao Technology ranks #1120 out of 1678 companies in the Hardware industry, which is below the industry midpoint. Overall, Shenmao Technology has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shenmao Technology's Interest Coverage compare to APH and GLW?
According to the Hardware industry distribution chart, Shenmao Technology ranks #1120 out of 1678 companies for Interest Coverage. This places Shenmao Technology in the lower half of its industry. The industry median Interest Coverage is 13.65. Shenmao Technology's value of 5.97 is 56.2% below this benchmark. Historically, Shenmao Technology's own Interest Coverage has ranged from 4.31 to 27.69 over the past decade. While the company's 10-year median is 7.60 vs. the industry median of 13.65, Shenmao Technology 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.65, based on 1,678 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. Shenmao Technology's current Interest Coverage of 5.97 is 56.2% 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 Shenmao Technology and its competitors. For the Hardware industry, the median Interest Coverage is 13.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenmao Technology's current Interest Coverage is 5.97, which is 21% below median its own 10-year median of 7.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenmao Technology stock overvalued right now?
Based on GuruFocus' analysis, Shenmao Technology (TPE:3305) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$103.29, compared to a current price of NT$123.50 — trading 19.6% above its estimated fair value. The current Interest Coverage is 5.97, which is 21% below median its 10-year median of 7.60 and 56.2% below the Hardware industry median of 13.65. Shenmao Technology's overall GF Score™ is 74/100 with 3 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 Shenmao Technology (TPE:3305), the current Interest Coverage is 5.97 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 Shenmao Technology (TPE:3305) Overvalued in 2026?

Based on GuruFocus' analysis, Shenmao Technology stock appears to be overvalued. The current stock price of NT$123.50 is trading 19.6% above its estimated GF Value™ of NT$103.29. GuruFocus considers Shenmao Technology to be Modestly Overvalued.

Key valuation signals for TPE:3305:

  • Interest Coverage: 5.97 (21% below median its 10-year median of 7.60)
  • GF Value™: NT$103.29 vs. price of NT$123.50 (19.6% above fair value)
  • GF Score™: 74/100 with 3 warning signs
  • Industry Position: 56.2% below the Hardware median (#1120 of 1678)

No single metric tells the full story. See the TPE:3305 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shenmao Technology Business Description

Address No. 665, Datan North Road, Guanyin District, Taoyuan, TWN, 32841
Shenmao Technology Inc and its subsidiaries manufacture and sell solder wire, solder bar, BGA solder ball, and solder paste. The company has its geographic presence in Taiwan, Mainland China, Malaysia, and other countries. Its products are SMT Assembly, Semiconductor Packaging, Wave Solder Assembly, Liquid Flux, Solder Preform and Ribbon, and PV Ribbon.
74GF Score

Get the complete analysis for TPE:3305

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

NT$123.50
Price
NT$103.29
GF Value