Formosa PetrochemicalTPE:6505 +3.36%89 Interest Coverage is 61.45 as of Dec. 2025, which is 25% above its 10-year median of 49.26. GuruFocus rates TPE:6505 with a GF Score™ of 89/100 and a GF Value™ of NT$57.54 (Fairly Valued). The stock has 3 warning signs investors should review. Among 731 Oil & Gas companies, Formosa Petrochemical ranks better than 74.56% 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. Formosa Petrochemical's
Operating Income
for the
three
months ended in Dec. 2025 was NT$5,307 Mil. Formosa Petrochemical's Interest Expense for the
three
months ended in Dec. 2025 was NT$-86 Mil.
Formosa Petrochemical's interest coverage for the quarter that ended in Dec. 2025 was 61.45.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Formosa Petrochemical's Interest Coverage or its related term are showing as below:
TPE:6505'
s Interest Coverage Range Over the Past 10 Years
Min: 6.35 Med: 49.26 Max: 147.13
Current: 23.24
TPE:6505's Interest Coverage is ranked better than 74.56% of 731
companies
in the Oil & Gas industry
Industry Median: 5.89
vs TPE:6505: 23.24
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 .
Formosa Petrochemical Interest Coverage Related Terms
Formosa Petrochemical Interest Coverage Historical Data
* Premium members only.
The historical data trend for Formosa Petrochemical'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:6505 vs VLO, MPC, PSX: Interest Coverage Comparison
For the Oil & Gas Refining & Marketing subindustry, Formosa Petrochemical'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.
Formosa Petrochemical Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Formosa Petrochemical's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Formosa Petrochemical'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.
Formosa Petrochemical (TPE:6505) has a Interest Coverage of 61.45 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Formosa Petrochemical and its competitors. This is 25% above median its historical median of 49.26. Over the past decade, Formosa Petrochemical's Interest Coverage has ranged from 6.35 to 147.13. According to the industry distribution chart, Formosa Petrochemical ranks #186 out of 731 companies in the Oil & Gas industry, placing it in the top 25.4%.
Is Formosa Petrochemical's Interest Coverage too high?
Formosa Petrochemical's current Interest Coverage of 61.45 is 25% above median its 10-year median of 49.26. Over the past 10 years, this metric has ranged from a low of 6.35 to a high of 147.13. The Oil & Gas industry median Interest Coverage is 5.89. Formosa Petrochemical's value of 61.45 is 943.3% above this industry median. Based on the distribution chart, Formosa Petrochemical ranks #186 out of 731 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Formosa Petrochemical has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Formosa Petrochemical's Interest Coverage compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Formosa Petrochemical ranks #186 out of 731 companies for Interest Coverage. This puts Formosa Petrochemical in the upper half of its industry. The industry median Interest Coverage is 5.89. Formosa Petrochemical's value of 61.45 is 943.3% above this benchmark. Historically, Formosa Petrochemical's own Interest Coverage has ranged from 6.35 to 147.13 over the past decade. While the company's 10-year median is 49.26 vs. the industry median of 5.89, Formosa Petrochemical 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 an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 731 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. Formosa Petrochemical's current Interest Coverage of 61.45 is 943.3% 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 Formosa Petrochemical and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Petrochemical's current Interest Coverage is 61.45, which is 25% above median its own 10-year median of 49.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Petrochemical stock overvalued right now?
Based on GuruFocus' analysis, Formosa Petrochemical (TPE:6505) is currently considered Fairly Valued. The stock's GF Value™ is NT$57.54, compared to a current price of NT$55.30 — trading 3.9% below its estimated fair value. The current Interest Coverage is 61.45, which is 25% above median its 10-year median of 49.26 and 943.3% above the Oil & Gas industry median of 5.89. Formosa Petrochemical's overall GF Score™ is 89/100 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 Formosa Petrochemical (TPE:6505), the current Interest Coverage is 61.45 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 Formosa Petrochemical (TPE:6505) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Petrochemical stock appears to be undervalued.
The current stock price of NT$55.30 is trading 3.9% below its estimated GF Value™ of NT$57.54.
GuruFocus considers Formosa Petrochemical to be Fairly Valued.
Key valuation signals for TPE:6505:
Interest Coverage: 61.45 (25% above median its 10-year median of 49.26)
GF Value™: NT$57.54 vs. price of NT$55.30 (3.9% below fair value)
Industry Position: 943.3% above the Oil & Gas median (#186 of 731)
No single metric tells the full story. See the TPE:6505 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Petrochemical Corp engages in the Operation of refinery of petroleum and integrated manufacture of hydrocarbon. The firm operates in two segments. The Petrochemical segment that derives majority revenue engages in producing and selling petroleum, and petrochemical products. The Public utility segment engages in producing and selling water, electricity, and steam. Its product offerings comprise gasoline, jet fuel, kerosene, fuel oil, asphalt, sulfur, lubricant, diesel, naphtha, and liquid petroleum gas.
89GF Score
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