Kaori Heat Treatment Co (TPE:8996) Interest Coverage: 60.26 (As of Dec. 2025) — 149% Above Median


TPE:8996 Kaori Heat Treatment Co Ltd TPE:8996
81 GF Score
Price NT$1,230.00
GF Value NT$559.57
Valuation Significantly Overvalued
! 2 Warning Signs
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What is Kaori Heat Treatment Co Interest Coverage?

Kaori Heat Treatment Co TPE:8996 81 Interest Coverage is 60.26 as of Dec. 2025, which is 149% above its 10-year median of 24.22. GuruFocus rates TPE:8996 with a GF Score™ of 81/100 and a GF Value™ of NT$559.57 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,320 Industrial Products companies, Kaori Heat Treatment Co ranks better than 65.73% 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. Kaori Heat Treatment Co's Operating Income for the three months ended in Dec. 2025 was NT$364 Mil. Kaori Heat Treatment Co's Interest Expense for the three months ended in Dec. 2025 was NT$-6 Mil. Kaori Heat Treatment Co's interest coverage for the quarter that ended in Dec. 2025 was 60.26. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Kaori Heat Treatment Co's Interest Coverage or its related term are showing as below:

TPE:8996' s Interest Coverage Range Over the Past 10 Years
Min: 9.78   Med: 24.22   Max: 41.8
Current: 33.85


TPE:8996's Interest Coverage is ranked better than
65.73% of 2320 companies
in the Industrial Products industry
Industry Median: 14.88 vs TPE:8996: 33.85

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


Kaori Heat Treatment Co  (TPE:8996) 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 .


Kaori Heat Treatment Co Interest Coverage Related Terms


Kaori Heat Treatment Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Kaori Heat Treatment Co'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.

Kaori Heat Treatment Co Interest Coverage Chart

Kaori Heat Treatment Co 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 22.20 26.24 21.36 28.70 33.85

Kaori Heat Treatment Co 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 16.75 23.18 39.92 22.30 60.26

TPE:8996 vs GEV, ETN, PH: Interest Coverage Comparison

For the Specialty Industrial Machinery subindustry, Kaori Heat Treatment 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.


Kaori Heat Treatment Co Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Kaori Heat Treatment Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Kaori Heat Treatment Co's Interest Coverage falls into.


TPE:8996
81GF Score
Kaori Heat Treatment Co Ltd TPE:8996
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kaori Heat Treatment 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:

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.

Kaori Heat Treatment Co'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, Kaori Heat Treatment Co's Interest Expense was NT$-31 Mil. Its Operating Income was NT$1,045 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$253 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*1044.662/-30.863
=33.85

Kaori Heat Treatment Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the three months ended in Dec. 2025, Kaori Heat Treatment Co's Interest Expense was NT$-6 Mil. Its Operating Income was NT$364 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$253 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*363.942/-6.04
=60.26

* 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 60.26 mean?
Kaori Heat Treatment Co (TPE:8996) has a Interest Coverage of 60.26 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Kaori Heat Treatment Co and its competitors. This is 149% above median its historical median of 24.22. Over the past decade, Kaori Heat Treatment Co's Interest Coverage has ranged from 9.78 to 41.80. According to the industry distribution chart, Kaori Heat Treatment Co ranks #795 out of 2320 companies in the Industrial Products industry, placing it in the top 34.3%.
Is Kaori Heat Treatment Co's Interest Coverage too high?
Kaori Heat Treatment Co's current Interest Coverage of 60.26 is 149% above median its 10-year median of 24.22. Over the past 10 years, this metric has ranged from a low of 9.78 to a high of 41.80. The Industrial Products industry median Interest Coverage is 14.88. Kaori Heat Treatment Co's value of 60.26 is 305% above this industry median. Based on the distribution chart, Kaori Heat Treatment Co ranks #795 out of 2320 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Kaori Heat Treatment Co has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kaori Heat Treatment Co's Interest Coverage compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Kaori Heat Treatment Co ranks #795 out of 2320 companies for Interest Coverage. This puts Kaori Heat Treatment Co in the upper half of its industry. The industry median Interest Coverage is 14.88. Kaori Heat Treatment Co's value of 60.26 is 305% above this benchmark. Historically, Kaori Heat Treatment Co's own Interest Coverage has ranged from 9.78 to 41.80 over the past decade. While the company's 10-year median is 24.22 vs. the industry median of 14.88, Kaori Heat Treatment Co 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 Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.88, based on 2,320 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. Kaori Heat Treatment Co's current Interest Coverage of 60.26 is 305% 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 Kaori Heat Treatment Co and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kaori Heat Treatment Co's current Interest Coverage is 60.26, which is 149% above median its own 10-year median of 24.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kaori Heat Treatment Co stock overvalued right now?
Based on GuruFocus' analysis, Kaori Heat Treatment Co (TPE:8996) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$559.57, compared to a current price of NT$1,230.00 — trading 119.8% above its estimated fair value. The current Interest Coverage is 60.26, which is 149% above median its 10-year median of 24.22 and 305% above the Industrial Products industry median of 14.88. Kaori Heat Treatment Co's overall GF Score™ is 81/100 with 2 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 Kaori Heat Treatment Co (TPE:8996), the current Interest Coverage is 60.26 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 Kaori Heat Treatment Co (TPE:8996) Overvalued in 2026?

Based on GuruFocus' analysis, Kaori Heat Treatment Co stock appears to be overvalued. The current stock price of NT$1,230.00 is trading 119.8% above its estimated GF Value™ of NT$559.57. GuruFocus considers Kaori Heat Treatment Co to be Significantly Overvalued.

Key valuation signals for TPE:8996:

  • Interest Coverage: 60.26 (149% above median its 10-year median of 24.22)
  • GF Value™: NT$559.57 vs. price of NT$1,230.00 (119.8% above fair value)
  • GF Score™: 81/100 with 2 warning signs
  • Industry Position: 305% above the Industrial Products median (#795 of 2320)

No single metric tells the full story. See the TPE:8996 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kaori Heat Treatment Co Business Description

Address No. 5-2, Jilin North Road, Zhongli District, Taoyuan City, TWN, 320030
Kaori Heat Treatment Co Ltd specializes in producing mechanical hardware, processing fabricated metals, and manufacturing and developing heat exchange products or thermal products. The Group's factories are established in Zhongli, Kaohsiung, etc. Its operating activities include heat treatment processing of various mechanical hardware and fabricated metals, plate heat exchangers, thermal products, and manufacturing activities. The Group operates in a single operating segment of plate heat exchangers, power generation, and thermal energy products. It operates in Asia, America, Europe, and others. The Group generates maximum revenue from America.
81GF Score

Get the complete analysis for TPE:8996

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

NT$1,230.00
Price
NT$559.57
GF Value