REDtone Digital Bhd (XKLS:0032) Interest Coverage: 17.82 (As of Jun. 2026) — 16% Above Median

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XKLS:0032 REDtone Digital Bhd XKLS:0032
51 GF Score
Price RM0.40
GF Value RM0.38
Valuation Fairly Valued
! 8 Warning Signs
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What is REDtone Digital Bhd Interest Coverage?

REDtone Digital Bhd XKLS:0032 -1.25% 51 Interest Coverage is 17.82 as of Jun. 2026, which is 16% above its 10-year median of 15.36. GuruFocus rates XKLS:0032 with a GF Score™ of 51/100 and a GF Value™ of RM0.38 (Fairly Valued). The stock has 8 warning signs investors should review. Among 287 Telecommunication Services companies, REDtone Digital Bhd ranks better than 69.34% 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. REDtone Digital Bhd's Operating Income for the three months ended in Jun. 2026 was RM9.5 Mil. REDtone Digital Bhd's Interest Expense for the three months ended in Jun. 2026 was RM-0.5 Mil. REDtone Digital Bhd's interest coverage for the quarter that ended in Jun. 2026 was 17.82. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for REDtone Digital Bhd's Interest Coverage or its related term are showing as below:

XKLS:0032' s Interest Coverage Range Over the Past 10 Years
Min: 3.41   Med: 15.36   Max: 51.29
Current: 9.47


XKLS:0032's Interest Coverage is ranked better than
69.34% of 287 companies
in the Telecommunication Services industry
Industry Median: 4.88 vs XKLS:0032: 9.47

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


REDtone Digital Bhd  (XKLS:0032) 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 .


REDtone Digital Bhd Interest Coverage Related Terms


REDtone Digital Bhd Interest Coverage Historical Data

* Premium members only.

The historical data trend for REDtone Digital Bhd'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.

REDtone Digital Bhd Interest Coverage Chart

REDtone Digital Bhd Annual Data
Trend May15 Apr17 Apr18 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25 Jun26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 47.63 15.76 22.65 8.89 9.36

REDtone Digital Bhd Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 0.00 8.64 4.30 10.27 17.82

XKLS:0032 vs VZ, TMUS, T: Interest Coverage Comparison

For the Telecom Services subindustry, REDtone Digital Bhd'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.


REDtone Digital Bhd Interest Coverage vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, REDtone Digital Bhd's Interest Coverage distribution charts can be found below:

* The bar in red indicates where REDtone Digital Bhd's Interest Coverage falls into.


XKLS:0032
51GF Score
REDtone Digital Bhd XKLS:0032
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

REDtone Digital Bhd 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.

REDtone Digital Bhd's Interest Coverage for the fiscal year that ended in Jun. 2026 is calculated as

Here, for the fiscal year that ended in Jun. 2026, REDtone Digital Bhd's Interest Expense was RM-2.7 Mil. Its Operating Income was RM25.0 Mil. And its Long-Term Debt & Capital Lease Obligation was RM0.8 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2026 )/Interest Expense (A: Jun. 2026 )
=-1*25.017/-2.673
=9.36

REDtone Digital Bhd's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, REDtone Digital Bhd's Interest Expense was RM-0.5 Mil. Its Operating Income was RM9.5 Mil. And its Long-Term Debt & Capital Lease Obligation was RM0.8 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*9.517/-0.534
=17.82

* 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 17.82 mean?
REDtone Digital Bhd (XKLS:0032) has a Interest Coverage of 17.82 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on REDtone Digital Bhd and its competitors. This is 16% above median its historical median of 15.36. Over the past decade, REDtone Digital Bhd's Interest Coverage has ranged from 3.41 to 51.29. According to the industry distribution chart, REDtone Digital Bhd ranks #88 out of 287 companies in the Telecommunication Services industry, placing it in the top 30.7%.
Is REDtone Digital Bhd's Interest Coverage too high?
REDtone Digital Bhd's current Interest Coverage of 17.82 is 16% above median its 10-year median of 15.36. Over the past 10 years, this metric has ranged from a low of 3.41 to a high of 51.29. The Telecommunication Services industry median Interest Coverage is 4.88. REDtone Digital Bhd's value of 17.82 is 265.2% above this industry median. Based on the distribution chart, REDtone Digital Bhd ranks #88 out of 287 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, REDtone Digital Bhd has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does REDtone Digital Bhd's Interest Coverage compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, REDtone Digital Bhd ranks #88 out of 287 companies for Interest Coverage. This puts REDtone Digital Bhd in the upper half of its industry. The industry median Interest Coverage is 4.88. REDtone Digital Bhd's value of 17.82 is 265.2% above this benchmark. Historically, REDtone Digital Bhd's own Interest Coverage has ranged from 3.41 to 51.29 over the past decade. While the company's 10-year median is 15.36 vs. the industry median of 4.88, REDtone Digital Bhd 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 Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.88, based on 287 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. REDtone Digital Bhd's current Interest Coverage of 17.82 is 265.2% 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 REDtone Digital Bhd and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REDtone Digital Bhd's current Interest Coverage is 17.82, which is 16% above median its own 10-year median of 15.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REDtone Digital Bhd stock overvalued right now?
Based on GuruFocus' analysis, REDtone Digital Bhd (XKLS:0032) is currently considered Fairly Valued. The stock's GF Value™ is RM0.38, compared to a current price of RM0.40 — trading 3.9% above its estimated fair value. The current Interest Coverage is 17.82, which is 16% above median its 10-year median of 15.36 and 265.2% above the Telecommunication Services industry median of 4.88. REDtone Digital Bhd's overall GF Score™ is 51/100 with 8 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 REDtone Digital Bhd (XKLS:0032), the current Interest Coverage is 17.82 as of Jun. 2026. 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 REDtone Digital Bhd (XKLS:0032) Overvalued in 2026?

Based on GuruFocus' analysis, REDtone Digital Bhd stock appears to be overvalued. The current stock price of RM0.40 is trading 3.9% above its estimated GF Value™ of RM0.38. GuruFocus considers REDtone Digital Bhd to be Fairly Valued.

Key valuation signals for XKLS:0032:

  • Interest Coverage: 17.82 (16% above median its 10-year median of 15.36)
  • GF Value™: RM0.38 vs. price of RM0.40 (3.9% above fair value)
  • GF Score™: 51/100 with 8 warning signs
  • Industry Position: 265.2% above the Telecommunication Services median (#88 of 287)

No single metric tells the full story. See the XKLS:0032 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


REDtone Digital Bhd Business Description

Address IOI Business Park, Suite 22-30, 5th Floor, Puchong, SGR, MYS, 47100
REDtone Digital Bhd is a digital infrastructure and services provider operating through three segments: Telecommunication Services, offering data, managed network services, Cloud PBX, SIP Trunking, managed cybersecurity, and Starlink satellite connectivity; Managed Telecommunications Network Services, strengthening Malaysia's digital infrastructure in underserved and rural areas, supporting initiatives like Kampung Tanpa Wayar, Time-3, and JENDELA; and Cloud, Artificial Intelligence, and Internet of Things, providing cloud-first, AI-powered, and IoT-enabled solutions including AI Agents, smart farming, and SaaS CRM platforms. The company generates majority of its revenue from the Managed Telecommunications Network Services segment and operates in Malaysia.
51GF Score

Get the complete analysis for XKLS:0032

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

RM0.40
Price
RM0.38
GF Value