N2N Connect Bhd (XKLS:0108) Interest Coverage: 70.91 (As of Mar. 2026) — 61% 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.

XKLS:0108 N2N Connect Bhd XKLS:0108
36 GF Score
Price RM0.31
GF Value RM0.38
Valuation Modestly Undervalued
! 5 Warning Signs
View Full Analysis

What is N2N Connect Bhd Interest Coverage?

N2N Connect Bhd XKLS:0108 +1.64% 36 Interest Coverage is 70.91 as of Mar. 2026, which is 61% above its 10-year median of 43.98. GuruFocus rates XKLS:0108 with a GF Score™ of 36/100 and a GF Value™ of RM0.38 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,714 Software companies, N2N Connect Bhd ranks better than 69.49% 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. N2N Connect Bhd's Operating Income for the three months ended in Mar. 2026 was RM0.78 Mil. N2N Connect Bhd's Interest Expense for the three months ended in Mar. 2026 was RM-0.01 Mil. N2N Connect Bhd's interest coverage for the quarter that ended in Mar. 2026 was 70.91. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. N2N Connect Bhd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for N2N Connect Bhd's Interest Coverage or its related term are showing as below:

XKLS:0108' s Interest Coverage Range Over the Past 10 Years
Min: 11.6   Med: 43.98   Max: 258.31
Current: 114.93


XKLS:0108's Interest Coverage is ranked better than
69.49% of 1714 companies
in the Software industry
Industry Median: 24.61 vs XKLS:0108: 114.93

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


N2N Connect Bhd  (XKLS:0108) 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 .


N2N Connect Bhd Interest Coverage Related Terms


N2N Connect Bhd Interest Coverage Historical Data

* Premium members only.

The historical data trend for N2N Connect 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.

N2N Connect Bhd Interest Coverage Chart

N2N Connect Bhd 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 74.67 258.31 244.08 0.00 180.46

N2N Connect Bhd Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 154.29 98.31 56.09 307.43 70.91

XKLS:0108 vs UBER, SHOP, CRM: Interest Coverage Comparison

For the Software - Application subindustry, N2N Connect 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.


N2N Connect Bhd Interest Coverage vs Software Industry

For the Software industry and Technology sector, N2N Connect Bhd's Interest Coverage distribution charts can be found below:

* The bar in red indicates where N2N Connect Bhd's Interest Coverage falls into.


XKLS:0108
36GF Score
N2N Connect Bhd XKLS:0108
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

N2N Connect 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.

N2N Connect Bhd'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, N2N Connect Bhd's Interest Expense was RM-0.05 Mil. Its Operating Income was RM8.66 Mil. And its Long-Term Debt & Capital Lease Obligation was RM0.13 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*8.662/-0.048
=180.46

N2N Connect Bhd's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, N2N Connect Bhd's Interest Expense was RM-0.01 Mil. Its Operating Income was RM0.78 Mil. And its Long-Term Debt & Capital Lease Obligation was RM0.71 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*0.78/-0.011
=70.91

* 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 70.91 mean?
N2N Connect Bhd (XKLS:0108) has a Interest Coverage of 70.91 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on N2N Connect Bhd and its competitors. This is 61% above median its historical median of 43.98. Over the past decade, N2N Connect Bhd's Interest Coverage has ranged from 11.60 to 258.31. According to the industry distribution chart, N2N Connect Bhd ranks #523 out of 1714 companies in the Software industry, placing it in the top 30.5%.
Is N2N Connect Bhd's Interest Coverage too high?
N2N Connect Bhd's current Interest Coverage of 70.91 is 61% above median its 10-year median of 43.98. Over the past 10 years, this metric has ranged from a low of 11.60 to a high of 258.31. The Software industry median Interest Coverage is 24.61. N2N Connect Bhd's value of 70.91 is 188.1% above this industry median. Based on the distribution chart, N2N Connect Bhd ranks #523 out of 1714 companies in the Software industry, which is above the industry midpoint. Overall, N2N Connect Bhd has a GF Score™ of 36/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does N2N Connect Bhd's Interest Coverage compare to UBER and SHOP?
According to the Software industry distribution chart, N2N Connect Bhd ranks #523 out of 1714 companies for Interest Coverage. This puts N2N Connect Bhd in the upper half of its industry. The industry median Interest Coverage is 24.61. N2N Connect Bhd's value of 70.91 is 188.1% above this benchmark. Historically, N2N Connect Bhd's own Interest Coverage has ranged from 11.60 to 258.31 over the past decade. While the company's 10-year median is 43.98 vs. the industry median of 24.61, N2N Connect 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 Software company?
The median Interest Coverage among Software companies is 24.61, based on 1,714 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. N2N Connect Bhd's current Interest Coverage of 70.91 is 188.1% 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 N2N Connect Bhd and its competitors. For the Software industry, the median Interest Coverage is 24.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. N2N Connect Bhd's current Interest Coverage is 70.91, which is 61% above median its own 10-year median of 43.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is N2N Connect Bhd stock overvalued right now?
Based on GuruFocus' analysis, N2N Connect Bhd (XKLS:0108) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.38, compared to a current price of RM0.31 — trading 18.4% below its estimated fair value. The current Interest Coverage is 70.91, which is 61% above median its 10-year median of 43.98 and 188.1% above the Software industry median of 24.61. N2N Connect Bhd's overall GF Score™ is 36/100 with 5 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 N2N Connect Bhd (XKLS:0108), the current Interest Coverage is 70.91 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 N2N Connect Bhd (XKLS:0108) Overvalued in 2026?

Based on GuruFocus' analysis, N2N Connect Bhd stock appears to be undervalued. The current stock price of RM0.31 is trading 18.4% below its estimated GF Value™ of RM0.38. GuruFocus considers N2N Connect Bhd to be Modestly Undervalued.

Key valuation signals for XKLS:0108:

  • Interest Coverage: 70.91 (61% above median its 10-year median of 43.98)
  • GF Value™: RM0.38 vs. price of RM0.31 (18.4% below fair value)
  • GF Score™: 36/100 with 5 warning signs
  • Industry Position: 188.1% above the Software median (#523 of 1714)

No single metric tells the full story. See the XKLS:0108 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


N2N Connect Bhd Business Description

Address Avenue 3 Bangsar South No.8, Jalan Kerinchi, Wisma N2N, Level 9, Tower 2, Kuala Lumpur, MYS, 59200
N2N Connect Bhd is an investment holding company. It is engaged in the research and development of software packages, provider of design, programming, consultancy services and related activities. Its products include TCProGlobal, TCPlus, TCMobile, and TCBOS and services range from online trading portals within the stockbroking industry, hosting and managing network services, to wealth and risk management solutions. It operates in Malaysia, Hong Kong, and other countries and generates the majority of the revenue from Hong Kong.
36GF Score

Get the complete analysis for XKLS:0108

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

RM0.31
Price
RM0.38
GF Value