Tainan Enterprise (Cayman) CoTPE:5906 -7.50%75 Interest Coverage is 3.09 as of Dec. 2025, which is 38% below its 10-year median of 4.98. GuruFocus rates TPE:5906 with a GF Score™ of 75/100 and a GF Value™ of NT$45.26 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 734 Manufacturing - Apparel & Accessories companies, Tainan Enterprise (Cayman) Co ranks worse than 71.39% 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. Tainan Enterprise (Cayman) Co's
Operating Income
for the
three
months ended in Dec. 2025 was NT$15 Mil. Tainan Enterprise (Cayman) Co's Interest Expense for the
three
months ended in Dec. 2025 was NT$-5 Mil.
Tainan Enterprise (Cayman) Co's interest coverage for the quarter that ended in Dec. 2025 was 3.09.
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. Tainan Enterprise (Cayman) Co Ltd interest coverage is 2.24, which is low.
The historical rank and industry rank for Tainan Enterprise (Cayman) Co's Interest Coverage or its related term are showing as below:
TPE:5906'
s Interest Coverage Range Over the Past 10 Years
Min: 0.41 Med: 4.98 Max: 21.72
Current: 2.24
TPE:5906's Interest Coverage is ranked worse than 71.39% of 734
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.445
vs TPE:5906: 2.24
Tainan Enterprise (Cayman) Co (TPE:5906) 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 .
Tainan Enterprise (Cayman) Co Interest Coverage Related Terms
Tainan Enterprise (Cayman) Co Interest Coverage Historical Data
* 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.
Tainan Enterprise (Cayman) Co Interest Coverage Chart
TPE:5906 vs RL, LEVI, VFC: Interest Coverage Comparison
For the Apparel Manufacturing subindustry, Tainan Enterprise (Cayman) 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.
Tainan Enterprise (Cayman) Co Interest Coverage vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Tainan Enterprise (Cayman) Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tainan Enterprise (Cayman) Co's Interest Coverage falls into.
Tainan Enterprise (Cayman) 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:
* 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.
Tainan Enterprise (Cayman) Co (TPE:5906) has a Interest Coverage of 3.09 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tainan Enterprise (Cayman) Co and its competitors. This is 38% below median its historical median of 4.98. Over the past decade, Tainan Enterprise (Cayman) Co's Interest Coverage has ranged from 0.41 to 21.72. According to the industry distribution chart, Tainan Enterprise (Cayman) Co ranks #524 out of 734 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 71.4%.
Is Tainan Enterprise (Cayman) Co's Interest Coverage too high?
Tainan Enterprise (Cayman) Co's current Interest Coverage of 3.09 is 38% below median its 10-year median of 4.98. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 21.72. The Manufacturing - Apparel & Accessories industry median Interest Coverage is 5.45. Tainan Enterprise (Cayman) Co's value of 3.09 is 43.3% below this industry median. Based on the distribution chart, Tainan Enterprise (Cayman) Co ranks #524 out of 734 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Tainan Enterprise (Cayman) Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tainan Enterprise (Cayman) Co's Interest Coverage compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Tainan Enterprise (Cayman) Co ranks #524 out of 734 companies for Interest Coverage. This places Tainan Enterprise (Cayman) Co in the lower half of its industry. The industry median Interest Coverage is 5.45. Tainan Enterprise (Cayman) Co's value of 3.09 is 43.3% below this benchmark. Historically, Tainan Enterprise (Cayman) Co's own Interest Coverage has ranged from 0.41 to 21.72 over the past decade. While the company's 10-year median is 4.98 vs. the industry median of 5.45, Tainan Enterprise (Cayman) 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 Manufacturing - Apparel & Accessories company?
The median Interest Coverage among Manufacturing - Apparel & Accessories companies is 5.45, based on 734 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. Tainan Enterprise (Cayman) Co's current Interest Coverage of 3.09 is 43.3% 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 Tainan Enterprise (Cayman) Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Interest Coverage is 5.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tainan Enterprise (Cayman) Co's current Interest Coverage is 3.09, which is 38% below median its own 10-year median of 4.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tainan Enterprise (Cayman) Co stock overvalued right now?
Based on GuruFocus' analysis, Tainan Enterprise (Cayman) Co (TPE:5906) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$45.26, compared to a current price of NT$35.15 — trading 22.3% below its estimated fair value. The current Interest Coverage is 3.09, which is 38% below median its 10-year median of 4.98 and 43.3% below the Manufacturing - Apparel & Accessories industry median of 5.45. Tainan Enterprise (Cayman) Co's overall GF Score™ is 75/100 with 8 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 Tainan Enterprise (Cayman) Co (TPE:5906), the current Interest Coverage is 3.09 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 Tainan Enterprise (Cayman) Co (TPE:5906) Overvalued in 2026?
Based on GuruFocus' analysis, Tainan Enterprise (Cayman) Co stock appears to be undervalued.
The current stock price of NT$35.15 is trading 22.3% below its estimated GF Value™ of NT$45.26.
GuruFocus considers Tainan Enterprise (Cayman) Co to be Modestly Undervalued.
Key valuation signals for TPE:5906:
Interest Coverage: 3.09 (38% below median its 10-year median of 4.98)
GF Value™: NT$45.26 vs. price of NT$35.15 (22.3% below fair value)
Industry Position: 43.3% below the Manufacturing - Apparel & Accessories median (#524 of 734)
No single metric tells the full story. See the TPE:5906 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tainan Enterprise (Cayman) Co Business Description
Tainan Enterprise (Cayman) Co Ltd and its subsidiaries mainly engage in professional investment services and trading of various garments, footwear, and department stores. The company carries brands such as Tony Wear, Tony Jeans, Tony Uomo, and Tjl, and also acts as an agent for European apparel brands including Camel Active from Germany, New Man, and U by Ungaro from France. Its segments include sports business, which generates maximum revenue, cultural and creative department store, and others.
75GF Score
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