Ruentex Development Co (TPE:9945) Interest Coverage: 8.42 (As of Dec. 2025) — 39% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TPE:9945 Ruentex Development Co Ltd TPE:9945
74 GF Score
Price NT$25.85
GF Value NT$53.55
Valuation Possible Value Trap
! 4 Warning Signs
View Full Analysis

What is Ruentex Development Co Interest Coverage?

Ruentex Development Co TPE:9945 +1.77% 74 Interest Coverage is 8.42 as of Dec. 2025, which is 39% above its 10-year median of 6.06. GuruFocus rates TPE:9945 with a GF Score™ of 74/100 and a GF Value™ of NT$53.55 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,359 Construction companies, Ruentex Development Co ranks worse than 54.89% 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. Ruentex Development Co's Operating Income for the three months ended in Dec. 2025 was NT$2,537 Mil. Ruentex Development Co's Interest Expense for the three months ended in Dec. 2025 was NT$-301 Mil. Ruentex Development Co's interest coverage for the quarter that ended in Dec. 2025 was 8.42. The higher the ratio, the stronger the company's financial strength is.

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

TPE:9945' s Interest Coverage Range Over the Past 10 Years
Min: 2.99   Med: 6.06   Max: 7.28
Current: 6.33


TPE:9945's Interest Coverage is ranked worse than
54.89% of 1359 companies
in the Construction industry
Industry Median: 7.81 vs TPE:9945: 6.33

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


Ruentex Development Co  (TPE:9945) 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 .


Ruentex Development Co Interest Coverage Related Terms


Ruentex Development Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Ruentex Development 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.

Ruentex Development Co Interest Coverage Chart

Ruentex Development 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 6.64 7.28 5.78 6.58 6.33

Ruentex Development 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 7.70 4.55 6.48 5.53 8.42

TPE:9945 vs PWR, FIX, EME: Interest Coverage Comparison

For the Engineering & Construction subindustry, Ruentex Development 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.


Ruentex Development Co Interest Coverage vs Construction Industry

For the Construction industry and Industrials sector, Ruentex Development Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ruentex Development Co's Interest Coverage falls into.


TPE:9945
74GF Score
Ruentex Development Co Ltd TPE:9945
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ruentex Development 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.

Ruentex Development 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, Ruentex Development Co's Interest Expense was NT$-1,098 Mil. Its Operating Income was NT$6,946 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$51,012 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*6945.664/-1097.849
=6.33

Ruentex Development Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the three months ended in Dec. 2025, Ruentex Development Co's Interest Expense was NT$-301 Mil. Its Operating Income was NT$2,537 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$51,012 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*2536.783/-301.148
=8.42

* 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 8.42 mean?
Ruentex Development Co (TPE:9945) has a Interest Coverage of 8.42 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ruentex Development Co and its competitors. This is 39% above median its historical median of 6.06. Over the past decade, Ruentex Development Co's Interest Coverage has ranged from 2.99 to 7.28. According to the industry distribution chart, Ruentex Development Co ranks #746 out of 1359 companies in the Construction industry, placing it in the top 54.9%.
Is Ruentex Development Co's Interest Coverage too high?
Ruentex Development Co's current Interest Coverage of 8.42 is 39% above median its 10-year median of 6.06. Over the past 10 years, this metric has ranged from a low of 2.99 to a high of 7.28. The Construction industry median Interest Coverage is 7.81. Ruentex Development Co's value of 8.42 is 7.8% above this industry median. Based on the distribution chart, Ruentex Development Co ranks #746 out of 1359 companies in the Construction industry, which is below the industry midpoint. Overall, Ruentex Development Co has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ruentex Development Co's Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, Ruentex Development Co ranks #746 out of 1359 companies for Interest Coverage. This places Ruentex Development Co in the lower half of its industry. The industry median Interest Coverage is 7.81. Ruentex Development Co's value of 8.42 is 7.8% above this benchmark. Historically, Ruentex Development Co's own Interest Coverage has ranged from 2.99 to 7.28 over the past decade. While the company's 10-year median is 6.06 vs. the industry median of 7.81, Ruentex Development 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 a Construction company?
The median Interest Coverage among Construction companies is 7.81, based on 1,359 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. Ruentex Development Co's current Interest Coverage of 8.42 is 7.8% 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 Ruentex Development Co and its competitors. For the Construction industry, the median Interest Coverage is 7.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ruentex Development Co's current Interest Coverage is 8.42, which is 39% above median its own 10-year median of 6.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ruentex Development Co stock overvalued right now?
Based on GuruFocus' analysis, Ruentex Development Co (TPE:9945) is currently considered Possible Value Trap. The stock's GF Value™ is NT$53.55, compared to a current price of NT$25.85 — trading 51.7% below its estimated fair value. The current Interest Coverage is 8.42, which is 39% above median its 10-year median of 6.06 and 7.8% above the Construction industry median of 7.81. Ruentex Development Co's overall GF Score™ is 74/100 with 4 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 Ruentex Development Co (TPE:9945), the current Interest Coverage is 8.42 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 Ruentex Development Co (TPE:9945) Overvalued in 2026?

Based on GuruFocus' analysis, Ruentex Development Co stock appears to be undervalued. The current stock price of NT$25.85 is trading 51.7% below its estimated GF Value™ of NT$53.55. GuruFocus considers Ruentex Development Co to be Possible Value Trap.

Key valuation signals for TPE:9945:

  • Interest Coverage: 8.42 (39% above median its 10-year median of 6.06)
  • GF Value™: NT$53.55 vs. price of NT$25.85 (51.7% below fair value)
  • GF Score™: 74/100 with 4 warning signs
  • Industry Position: 7.8% above the Construction median (#746 of 1359)

No single metric tells the full story. See the TPE:9945 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ruentex Development Co Business Description

Address No. 308, Bade Road, 11th floor-1st floor, Section 2, Zhongshan District, Taipei, TWN, 104
Ruentex Development Co Ltd is a Taiwan-based company involved in the construction business. The company's reportable segments include Construction Business Department, Commercial Real Estate, Building Materials, and Other operating Departments. It generates maximum revenue from the Construction segment. Geographically, it derives a majority of its revenue from Taiwan.
74GF Score

Get the complete analysis for TPE:9945

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

NT$25.85
Price
NT$53.55
GF Value