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REDtone Digital BhdXKLS:0032 +1.61%49 Interest Coverage is 10.27 as of Mar. 2026, which is 44% below its 10-year median of 18.44. GuruFocus rates XKLS:0032 with a GF Score™ of 49/100 and a GF Value™ of RM0.84 (Significantly Undervalued). The stock has 8 warning signs investors should review. Among 283 Telecommunication Services companies, REDtone Digital Bhd ranks better than 86.93% 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 Mar. 2026 was RM4.7 Mil. REDtone Digital Bhd's Interest Expense for the
three
months ended in Mar. 2026 was RM-0.5 Mil.
REDtone Digital Bhd's interest coverage for the quarter that ended in Mar. 2026 was 10.27.
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: 18.44 Max: 51.29
Current: 38.52
XKLS:0032's Interest Coverage is ranked better than 86.93% of 283
companies
in the Telecommunication Services industry
Industry Median: 4.74
vs XKLS:0032: 38.52
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.
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.
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.
REDtone Digital Bhd (XKLS:0032) has a Interest Coverage of 10.27 as of Mar. 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 44% below median its historical median of 18.44. 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 #37 out of 283 companies in the Telecommunication Services industry, placing it in the top 13.1%.
Is REDtone Digital Bhd's Interest Coverage too high?
REDtone Digital Bhd's current Interest Coverage of 10.27 is 44% below median its 10-year median of 18.44. 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 4.74. REDtone Digital Bhd's value of 10.27 is 116.7% above this industry median. Based on the distribution chart, REDtone Digital Bhd ranks #37 out of 283 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, REDtone Digital Bhd has a GF Score™ of 49/100 and is considered Significantly Undervalued, 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 #37 out of 283 companies for Interest Coverage. This places REDtone Digital Bhd in the top 13% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 4.74. REDtone Digital Bhd's value of 10.27 is 116.7% 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 18.44 vs. the industry median of 4.74, 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 4.74, based on 283 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 10.27 is 116.7% 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 4.74 — 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 10.27, which is 44% below median its own 10-year median of 18.44. 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 Significantly Undervalued. The stock's GF Value™ is RM0.84, compared to a current price of RM0.32 — trading 62.5% below its estimated fair value. The current Interest Coverage is 10.27, which is 44% below median its 10-year median of 18.44 and 116.7% above the Telecommunication Services industry median of 4.74. REDtone Digital Bhd's overall GF Score™ is 49/100 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 10.27 as of Mar. 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 undervalued.
The current stock price of RM0.32 is trading 62.5% below its estimated GF Value™ of RM0.84.
GuruFocus considers REDtone Digital Bhd to be Significantly Undervalued.
Key valuation signals for XKLS:0032:
Interest Coverage: 10.27 (44% below median its 10-year median of 18.44)
GF Value™: RM0.84 vs. price of RM0.32 (62.5% below fair value)
Industry Position: 116.7% above the Telecommunication Services median (#37 of 283)
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 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.
49GF Score
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