Kantone Holdings (HKSE:01059) Interest Coverage: 14.38 (As of Dec. 2025) — 38% Below Median

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HKSE:01059 Kantone Holdings Ltd HKSE:01059
52 GF Score
Price HK$0.37
GF Value HK$0.25
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Kantone Holdings Interest Coverage?

Kantone Holdings HKSE:01059 52 Interest Coverage is 14.38 as of Dec. 2025, which is 38% below its 10-year median of 23.04. GuruFocus rates HKSE:01059 with a GF Score™ of 52/100 and a GF Value™ of HK$0.25 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,718 Software companies, Kantone Holdings ranks worse than 62.34% 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. Kantone Holdings's Operating Income for the six months ended in Dec. 2025 was HK$2.5 Mil. Kantone Holdings's Interest Expense for the six months ended in Dec. 2025 was HK$-0.2 Mil. Kantone Holdings's interest coverage for the quarter that ended in Dec. 2025 was 14.38. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:01059' s Interest Coverage Range Over the Past 10 Years
Min: 4.23   Med: 23.04   Max: 1724.81
Current: 12.19


HKSE:01059's Interest Coverage is ranked worse than
62.34% of 1718 companies
in the Software industry
Industry Median: 24.655 vs HKSE:01059: 12.19

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


Kantone Holdings  (HKSE:01059) 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 .


Kantone Holdings Interest Coverage Related Terms


Kantone Holdings Interest Coverage Historical Data

* Premium members only.

The historical data trend for Kantone Holdings'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.

Kantone Holdings Interest Coverage Chart

Kantone Holdings Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.23 4.23 0.00 23.04 30.25

Kantone Holdings Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 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 57.36 0.00 39.93 8.55 14.38

HKSE:01059 vs IBM, ACN, FISV: Interest Coverage Comparison

For the Information Technology Services subindustry, Kantone Holdings'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.


Kantone Holdings Interest Coverage vs Software Industry

For the Software industry and Technology sector, Kantone Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Kantone Holdings's Interest Coverage falls into.


HKSE:01059
52GF Score
Kantone Holdings Ltd HKSE:01059
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kantone Holdings 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.

Kantone Holdings's Interest Coverage for the fiscal year that ended in Jun. 2025 is calculated as

Here, for the fiscal year that ended in Jun. 2025, Kantone Holdings's Interest Expense was HK$-0.3 Mil. Its Operating Income was HK$10.1 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$3.5 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*10.104/-0.334
=30.25

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

Here, for the six months ended in Dec. 2025, Kantone Holdings's Interest Expense was HK$-0.2 Mil. Its Operating Income was HK$2.5 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$2.6 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*2.459/-0.171
=14.38

* 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 14.38 mean?
Kantone Holdings (HKSE:01059) has a Interest Coverage of 14.38 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Kantone Holdings and its competitors. This is 38% below median its historical median of 23.04. Over the past decade, Kantone Holdings' Interest Coverage has ranged from 4.23 to 1,724.81. According to the industry distribution chart, Kantone Holdings ranks #1071 out of 1718 companies in the Software industry, placing it in the top 62.3%.
Is Kantone Holdings' Interest Coverage too high?
Kantone Holdings' current Interest Coverage of 14.38 is 38% below median its 10-year median of 23.04. Over the past 10 years, this metric has ranged from a low of 4.23 to a high of 1,724.81. The Software industry median Interest Coverage is 24.66. Kantone Holdings' value of 14.38 is 41.7% below this industry median. Based on the distribution chart, Kantone Holdings ranks #1071 out of 1718 companies in the Software industry, which is below the industry midpoint. Overall, Kantone Holdings has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kantone Holdings' Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, Kantone Holdings ranks #1071 out of 1718 companies for Interest Coverage. This places Kantone Holdings in the lower half of its industry. The industry median Interest Coverage is 24.66. Kantone Holdings' value of 14.38 is 41.7% below this benchmark. Historically, Kantone Holdings' own Interest Coverage has ranged from 4.23 to 1,724.81 over the past decade. While the company's 10-year median is 23.04 vs. the industry median of 24.66, Kantone Holdings 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 Software company?
The median Interest Coverage among Software companies is 24.66, based on 1,718 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. Kantone Holdings's current Interest Coverage of 14.38 is 41.7% 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 Kantone Holdings and its competitors. For the Software industry, the median Interest Coverage is 24.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kantone Holdings's current Interest Coverage is 14.38, which is 38% below median its own 10-year median of 23.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kantone Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kantone Holdings (HKSE:01059) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.25, compared to a current price of HK$0.37 — trading 46% above its estimated fair value. The current Interest Coverage is 14.38, which is 38% below median its 10-year median of 23.04 and 41.7% below the Software industry median of 24.66. Kantone Holdings' overall GF Score™ is 52/100 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 Kantone Holdings (HKSE:01059), the current Interest Coverage is 14.38 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 Kantone Holdings (HKSE:01059) Overvalued in 2026?

Based on GuruFocus' analysis, Kantone Holdings stock appears to be overvalued. The current stock price of HK$0.37 is trading 46% above its estimated GF Value™ of HK$0.25. GuruFocus considers Kantone Holdings to be Significantly Overvalued.

Key valuation signals for HKSE:01059:

  • Interest Coverage: 14.38 (38% below median its 10-year median of 23.04)
  • GF Value™: HK$0.25 vs. price of HK$0.37 (46% above fair value)
  • GF Score™: 52/100 with 4 warning signs
  • Industry Position: 41.7% below the Software median (#1071 of 1718)

No single metric tells the full story. See the HKSE:01059 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kantone Holdings Business Description

Address No. 21 Man Lok Street, Focal Industrial Centre, Unit 27A, 9th Floor, Block B, Hung Hom, Kowloon, Hong Kong, HKG
Kantone Holdings Ltd is an investment holding company. The company's operating segment includes Sales of cultural products; Technology: System sales including software licensing and services and Technology: Leasing of system products. It generates maximum revenue from the Technology: System sales including software licensing and services segment. Geographically, it derives a majority of its revenue from Europe (UK and Germany).
52GF Score

Get the complete analysis for HKSE:01059

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

HK$0.37
Price
HK$0.25
GF Value