Kellan Group (The)LSE:KLN Interest Coverage is 1.62 as of Jun. 2018, which is 26% below its 10-year median of 2.19. The stock has 3 warning signs investors should review.
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. Kellan Group (The)'s
Operating Income
for the
six
months ended in Jun. 2018 was £0.17 Mil. Kellan Group (The)'s Interest Expense for the
six
months ended in Jun. 2018 was £-0.11 Mil.
Kellan Group (The)'s interest coverage for the quarter that ended in Jun. 2018 was 1.62.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies interest coverage is at least 5. Kellan Group (The) PLC interest coverage is 2.94, which is low.
The historical rank and industry rank for Kellan Group (The)'s Interest Coverage or its related term are showing as below:
LSE:KLN'
s Interest Coverage Range Over the Past 10 Years
Min: 0.89 Med: 2.19 Max: 3.85
Current: 2.94
LSE:KLN's Interest Coverage is not ranked
in the Business Services industry.
Industry Median: 12.98
vs LSE:KLN: 2.94
Kellan Group (The) (LSE:KLN) 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 .
Kellan Group (The) Interest Coverage Related Terms
Kellan Group (The) Interest Coverage Historical Data
* Premium members only.
The historical data trend for Kellan Group (The)'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.
LSE:KLN vs TTNC, STAF: Interest Coverage Comparison
For the Staffing & Employment Services subindustry, Kellan Group (The)'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.
Kellan Group (The) Interest Coverage vs Business Services Industry
For the Business Services industry and Industrials sector, Kellan Group (The)'s Interest Coverage distribution charts can be found below:
* The bar in red indicates where Kellan Group (The)'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.
Kellan Group (The) (LSE:KLN) has a Interest Coverage of 1.62 as of Jun. 2018. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Kellan Group (The) and its competitors. This is 26% below median its historical median of 2.19. Over the past decade, Kellan Group (The)'s Interest Coverage has ranged from 0.89 to 3.85.
Is Kellan Group (The)'s Interest Coverage too high?
Kellan Group (The)'s current Interest Coverage of 1.62 is 26% below median its 10-year median of 2.19. Over the past 10 years, this metric has ranged from a low of 0.89 to a high of 3.85. The Business Services industry median Interest Coverage is 12.98. Kellan Group (The)'s value of 1.62 is 87.5% below this industry median.
How does Kellan Group (The)'s Interest Coverage compare to TTNC and STAF?
Kellan Group (The)'s Interest Coverage of 1.62 can be compared against companies in the Business Services industry. The industry median Interest Coverage is 12.98. Kellan Group (The)'s value of 1.62 is 87.5% below this benchmark. Historically, Kellan Group (The)'s own Interest Coverage has ranged from 0.89 to 3.85 over the past decade. While the company's 10-year median is 2.19 vs. the industry median of 12.98, Kellan Group (The) 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 Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 811 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. Kellan Group (The)'s current Interest Coverage of 1.62 is 87.5% 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 Kellan Group (The) and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kellan Group (The)'s current Interest Coverage is 1.62, which is 26% below median its own 10-year median of 2.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kellan Group (The) stock overvalued right now?
Kellan Group (The) (LSE:KLN) has a current Interest Coverage of 1.62. The current Interest Coverage is 1.62, which is 26% below median its 10-year median of 2.19 and 87.5% below the Business Services industry median of 12.98. 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 Kellan Group (The) (LSE:KLN), the current Interest Coverage is 1.62 as of Jun. 2018. 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.
Kellan Group (The) PLC is a UK based company engaged in recruitment business. The company operates across a wide range of functional disciplines and industry sectors. Business activity of the group is mentioned through Quantica Group, Berkeley Scott, RK Group and other segments. It offers permanent, contract, temporary and retained search recruitment services focusing the core markets being Hospitality and Leisure; Technology; and Accounting and Finance. Kellan derives the majority of revenue from consultancy and other ancillary services.
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