Aaeon Technology (TPE:6579) Interest Coverage: 53.09 (As of Dec. 2025) — 55% Below Median


TPE:6579 Aaeon Technology Inc TPE:6579
78 GF Score
Price NT$165.50
GF Value NT$145.48
Valuation Modestly Overvalued
! 10 Warning Signs
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What is Aaeon Technology Interest Coverage?

Aaeon Technology TPE:6579 +2.48% 78 Interest Coverage is 53.09 as of Dec. 2025, which is 55% below its 10-year median of 118.94. GuruFocus rates TPE:6579 with a GF Score™ of 78/100 and a GF Value™ of NT$145.48 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 1,672 Hardware companies, Aaeon Technology ranks better than 77.33% 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. Aaeon Technology's Operating Income for the three months ended in Dec. 2025 was NT$177 Mil. Aaeon Technology's Interest Expense for the three months ended in Dec. 2025 was NT$-3 Mil. Aaeon Technology's interest coverage for the quarter that ended in Dec. 2025 was 53.09. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Aaeon Technology Inc has enough cash to cover all of its debt. Its financial situation is stable.

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

TPE:6579' s Interest Coverage Range Over the Past 10 Years
Min: 64.27   Med: 118.94   Max: 252.89
Current: 71.92


TPE:6579's Interest Coverage is ranked better than
77.33% of 1672 companies
in the Hardware industry
Industry Median: 13.73 vs TPE:6579: 71.92

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


Aaeon Technology  (TPE:6579) 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 .


Aaeon Technology Interest Coverage Related Terms


Aaeon Technology Interest Coverage Historical Data

* Premium members only.

The historical data trend for Aaeon 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.

Aaeon Technology Interest Coverage Chart

Aaeon 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 113.08 199.88 155.44 64.27 71.92

Aaeon 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 67.60 59.81 109.56 82.90 53.09

TPE:6579 vs SNDK, DELL, STX: Interest Coverage Comparison

For the Computer Hardware subindustry, Aaeon 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.


Aaeon Technology Interest Coverage vs Hardware Industry

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

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


TPE:6579
78GF Score
Aaeon Technology Inc TPE:6579
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Aaeon 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.

Aaeon 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, Aaeon Technology's Interest Expense was NT$-9 Mil. Its Operating Income was NT$677 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$184 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*676.693/-9.409
=71.92

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

Here, for the three months ended in Dec. 2025, Aaeon Technology's Interest Expense was NT$-3 Mil. Its Operating Income was NT$177 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$184 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*177.39/-3.341
=53.09

* 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 53.09 mean?
Aaeon Technology (TPE:6579) has a Interest Coverage of 53.09 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Aaeon Technology and its competitors. This is 55% below median its historical median of 118.94. Over the past decade, Aaeon Technology's Interest Coverage has ranged from 64.27 to 252.89. According to the industry distribution chart, Aaeon Technology ranks #379 out of 1672 companies in the Hardware industry, placing it in the top 22.7%.
Is Aaeon Technology's Interest Coverage too high?
Aaeon Technology's current Interest Coverage of 53.09 is 55% below median its 10-year median of 118.94. Over the past 10 years, this metric has ranged from a low of 64.27 to a high of 252.89. The Hardware industry median Interest Coverage is 13.73. Aaeon Technology's value of 53.09 is 286.7% above this industry median. Based on the distribution chart, Aaeon Technology ranks #379 out of 1672 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Aaeon Technology has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aaeon Technology's Interest Coverage compare to SNDK and DELL?
According to the Hardware industry distribution chart, Aaeon Technology ranks #379 out of 1672 companies for Interest Coverage. This places Aaeon Technology in the top 23% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 13.73. Aaeon Technology's value of 53.09 is 286.7% above this benchmark. Historically, Aaeon Technology's own Interest Coverage has ranged from 64.27 to 252.89 over the past decade. While the company's 10-year median is 118.94 vs. the industry median of 13.73, Aaeon 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.73, 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. Aaeon Technology's current Interest Coverage of 53.09 is 286.7% 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 Aaeon Technology and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aaeon Technology's current Interest Coverage is 53.09, which is 55% below median its own 10-year median of 118.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aaeon Technology stock overvalued right now?
Based on GuruFocus' analysis, Aaeon Technology (TPE:6579) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$145.48, compared to a current price of NT$165.50 — trading 13.8% above its estimated fair value. The current Interest Coverage is 53.09, which is 55% below median its 10-year median of 118.94 and 286.7% above the Hardware industry median of 13.73. Aaeon Technology's overall GF Score™ is 78/100 with 10 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 Aaeon Technology (TPE:6579), the current Interest Coverage is 53.09 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 Aaeon Technology (TPE:6579) Overvalued in 2026?

Based on GuruFocus' analysis, Aaeon Technology stock appears to be overvalued. The current stock price of NT$165.50 is trading 13.8% above its estimated GF Value™ of NT$145.48. GuruFocus considers Aaeon Technology to be Modestly Overvalued.

Key valuation signals for TPE:6579:

  • Interest Coverage: 53.09 (55% below median its 10-year median of 118.94)
  • GF Value™: NT$145.48 vs. price of NT$165.50 (13.8% above fair value)
  • GF Score™: 78/100 with 10 warning signs
  • Industry Position: 286.7% above the Hardware median (#379 of 1672)

No single metric tells the full story. See the TPE:6579 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Aaeon Technology Business Description

Address Lane 235, Baoqiao Road, No. 135, 5th Floor, Xindian District, New Taipei City, TWN, 231
Aaeon Technology Inc is engaged in the manufacturing, processing and imports and exports of computer peripherals, electronic components, computer test instruments, computer PCB functional testing, and radio telecommunication equipment and its components; the R&D, design, manufacturing, processing and trading of various industrial computers, medical computers, industrial controllers, quantity controllers and components; industrial computer automation design and services, and the import/export of related materials. Geographically, it derives maximum revenue from Taiwan, followed by Europe, USA, China, and other regions.
78GF Score

Get the complete analysis for TPE:6579

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

NT$165.50
Price
NT$145.48
GF Value