MITAC Holdings (TPE:3706) Interest Coverage: 13.27 (As of Dec. 2025) — 39% Below Median


TPE:3706 MITAC Holdings Corp TPE:3706
86 GF Score
Price NT$88.20
GF Value NT$130.01
Valuation Significantly Undervalued
! 3 Warning Signs
View Full Analysis

What is MITAC Holdings Interest Coverage?

MITAC Holdings TPE:3706 +0.23% 86 Interest Coverage is 13.27 as of Dec. 2025, which is 39% below its 10-year median of 21.66. GuruFocus rates TPE:3706 with a GF Score™ of 86/100 and a GF Value™ of NT$130.01 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,672 Hardware companies, MITAC Holdings ranks better than 58.55% 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. MITAC Holdings's Operating Income for the three months ended in Dec. 2025 was NT$1,210 Mil. MITAC Holdings's Interest Expense for the three months ended in Dec. 2025 was NT$-91 Mil. MITAC Holdings's interest coverage for the quarter that ended in Dec. 2025 was 13.27. The higher the ratio, the stronger the company's financial strength is.

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

TPE:3706' s Interest Coverage Range Over the Past 10 Years
Min: 1.6   Med: 21.66   Max: 46.21
Current: 21.44


TPE:3706's Interest Coverage is ranked better than
58.55% of 1672 companies
in the Hardware industry
Industry Median: 13.675 vs TPE:3706: 21.44

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


MITAC Holdings  (TPE:3706) 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 .


MITAC Holdings Interest Coverage Related Terms


MITAC Holdings Interest Coverage Historical Data

* Premium members only.

The historical data trend for MITAC Holdings'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.

MITAC Holdings Interest Coverage Chart

MITAC Holdings 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 1.63 0.00 0.00 46.21 21.44

MITAC Holdings 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 64.89 43.54 25.36 20.49 13.27

TPE:3706 vs SNDK, DELL, STX: Interest Coverage Comparison

For the Computer Hardware subindustry, MITAC Holdings'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.


MITAC Holdings Interest Coverage vs Hardware Industry

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

* The bar in red indicates where MITAC Holdings's Interest Coverage falls into.


TPE:3706
86GF Score
MITAC Holdings Corp TPE:3706
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

MITAC Holdings 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.

MITAC Holdings'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, MITAC Holdings's Interest Expense was NT$-251 Mil. Its Operating Income was NT$5,374 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$8,448 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*5374.463/-250.688
=21.44

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

Here, for the three months ended in Dec. 2025, MITAC Holdings's Interest Expense was NT$-91 Mil. Its Operating Income was NT$1,210 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$8,448 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*1210.311/-91.215
=13.27

* 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 13.27 mean?
MITAC Holdings (TPE:3706) has a Interest Coverage of 13.27 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on MITAC Holdings and its competitors. This is 39% below median its historical median of 21.66. Over the past decade, MITAC Holdings' Interest Coverage has ranged from 1.60 to 46.21. According to the industry distribution chart, MITAC Holdings ranks #693 out of 1672 companies in the Hardware industry, placing it in the top 41.4%.
Is MITAC Holdings' Interest Coverage too high?
MITAC Holdings' current Interest Coverage of 13.27 is 39% below median its 10-year median of 21.66. Over the past 10 years, this metric has ranged from a low of 1.60 to a high of 46.21. The Hardware industry median Interest Coverage is 13.68. MITAC Holdings' value of 13.27 is 3% below this industry median. Based on the distribution chart, MITAC Holdings ranks #693 out of 1672 companies in the Hardware industry, which is above the industry midpoint. Overall, MITAC Holdings has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MITAC Holdings' Interest Coverage compare to SNDK and DELL?
According to the Hardware industry distribution chart, MITAC Holdings ranks #693 out of 1672 companies for Interest Coverage. This puts MITAC Holdings in the upper half of its industry. The industry median Interest Coverage is 13.68. MITAC Holdings' value of 13.27 is 3% below this benchmark. Historically, MITAC Holdings' own Interest Coverage has ranged from 1.60 to 46.21 over the past decade. While the company's 10-year median is 21.66 vs. the industry median of 13.68, MITAC Holdings 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 13.68, 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. MITAC Holdings's current Interest Coverage of 13.27 is 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 MITAC Holdings and its competitors. For the Hardware industry, the median Interest Coverage is 13.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MITAC Holdings's current Interest Coverage is 13.27, which is 39% below median its own 10-year median of 21.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MITAC Holdings stock overvalued right now?
Based on GuruFocus' analysis, MITAC Holdings (TPE:3706) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$130.01, compared to a current price of NT$88.20 — trading 32.2% below its estimated fair value. The current Interest Coverage is 13.27, which is 39% below median its 10-year median of 21.66 and 3% below the Hardware industry median of 13.68. MITAC Holdings' overall GF Score™ is 86/100 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 MITAC Holdings (TPE:3706), the current Interest Coverage is 13.27 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 MITAC Holdings (TPE:3706) Overvalued in 2026?

Based on GuruFocus' analysis, MITAC Holdings stock appears to be undervalued. The current stock price of NT$88.20 is trading 32.2% below its estimated GF Value™ of NT$130.01. GuruFocus considers MITAC Holdings to be Significantly Undervalued.

Key valuation signals for TPE:3706:

  • Interest Coverage: 13.27 (39% below median its 10-year median of 21.66)
  • GF Value™: NT$130.01 vs. price of NT$88.20 (32.2% below fair value)
  • GF Score™: 86/100 with 3 warning signs
  • Industry Position: 3% below the Hardware median (#693 of 1672)

No single metric tells the full story. See the TPE:3706 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


MITAC Holdings Business Description

Address No. 202, Wenhua 2nd Road, Guishan District, Taoyuan, TWN, 33383
MITAC Holdings Corp is a holding company whose subsidiaries offer a range of electronics manufacturing services. It is engaged in designing, manufacturing, and distributing servers and storage products across various architectures in public cloud, private cloud, and hybrid cloud environments. The smart mobile device and cloud service business group builds application ecosystems that bridge cloud service and smart mobile devices. It serves industries such as finance, technology, retail, education, and manufacturing. The company brands include Mio, Magellan, Navman, and Tyan.
86GF Score

Get the complete analysis for TPE:3706

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

NT$88.20
Price
NT$130.01
GF Value