Hong Leong Industries Bhd (XKLS:3301) Interest Coverage: 685.54 (As of Mar. 2026) — 314% Above Median

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XKLS:3301 Hong Leong Industries Bhd XKLS:3301
82 GF Score
Price RM18.60
GF Value RM13.88
Valuation Significantly Overvalued
! 7 Warning Signs
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What is Hong Leong Industries Bhd Interest Coverage?

Hong Leong Industries Bhd XKLS:3301 +0.98% 82 Interest Coverage is 685.54 as of Mar. 2026, which is 314% above its 10-year median of 165.63. GuruFocus rates XKLS:3301 with a GF Score™ of 82/100 and a GF Value™ of RM13.88 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,069 Vehicles & Parts companies, Hong Leong Industries Bhd ranks better than 96.82% 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. Hong Leong Industries Bhd's Operating Income for the three months ended in Mar. 2026 was RM219 Mil. Hong Leong Industries Bhd's Interest Expense for the three months ended in Mar. 2026 was RM-0 Mil. Hong Leong Industries Bhd's interest coverage for the quarter that ended in Mar. 2026 was 685.54. 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. Hong Leong Industries Bhd has enough cash to cover all of its debt. Its financial situation is stable.

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

XKLS:3301' s Interest Coverage Range Over the Past 10 Years
Min: 10.76   Med: 165.63   Max: 845.43
Current: 841.36


XKLS:3301's Interest Coverage is ranked better than
96.82% of 1069 companies
in the Vehicles & Parts industry
Industry Median: 8.36 vs XKLS:3301: 841.36

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


Hong Leong Industries Bhd  (XKLS:3301) 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 .


Hong Leong Industries Bhd Interest Coverage Related Terms


Hong Leong Industries Bhd Interest Coverage Historical Data

* Premium members only.

The historical data trend for Hong Leong Industries 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.

Hong Leong Industries Bhd Interest Coverage Chart

Hong Leong Industries Bhd 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 195.88 205.58 208.31 476.36 845.43

Hong Leong Industries 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 756.47 813.38 981.60 926.70 685.54

XKLS:3301 vs TSLA, GM, F: Interest Coverage Comparison

For the Auto Manufacturers subindustry, Hong Leong Industries 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.


Hong Leong Industries Bhd Interest Coverage vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Hong Leong Industries Bhd's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hong Leong Industries Bhd's Interest Coverage falls into.


XKLS:3301
82GF Score
Hong Leong Industries Bhd XKLS:3301
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hong Leong Industries 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.

Hong Leong Industries Bhd'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, Hong Leong Industries Bhd's Interest Expense was RM-1 Mil. Its Operating Income was RM772 Mil. And its Long-Term Debt & Capital Lease Obligation was RM107 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*771.878/-0.913
=845.43

Hong Leong Industries Bhd's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Hong Leong Industries Bhd's Interest Expense was RM-0 Mil. Its Operating Income was RM219 Mil. And its Long-Term Debt & Capital Lease Obligation was RM144 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*219.373/-0.32
=685.54

* 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 685.54 mean?
Hong Leong Industries Bhd (XKLS:3301) has a Interest Coverage of 685.54 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hong Leong Industries Bhd and its competitors. This is 314% above median its historical median of 165.63. Over the past decade, Hong Leong Industries Bhd's Interest Coverage has ranged from 10.76 to 845.43. According to the industry distribution chart, Hong Leong Industries Bhd ranks #34 out of 1069 companies in the Vehicles & Parts industry, placing it in the top 3.2%.
Is Hong Leong Industries Bhd's Interest Coverage too high?
Hong Leong Industries Bhd's current Interest Coverage of 685.54 is 314% above median its 10-year median of 165.63. Over the past 10 years, this metric has ranged from a low of 10.76 to a high of 845.43. The Vehicles & Parts industry median Interest Coverage is 8.36. Hong Leong Industries Bhd's value of 685.54 is 8100.2% above this industry median. Based on the distribution chart, Hong Leong Industries Bhd ranks #34 out of 1069 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Hong Leong Industries Bhd has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Leong Industries Bhd's Interest Coverage compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Hong Leong Industries Bhd ranks #34 out of 1069 companies for Interest Coverage. This places Hong Leong Industries Bhd in the top 3% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.36. Hong Leong Industries Bhd's value of 685.54 is 8100.2% above this benchmark. Historically, Hong Leong Industries Bhd's own Interest Coverage has ranged from 10.76 to 845.43 over the past decade. While the company's 10-year median is 165.63 vs. the industry median of 8.36, Hong Leong Industries 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.36, based on 1,069 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. Hong Leong Industries Bhd's current Interest Coverage of 685.54 is 8100.2% 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 Hong Leong Industries Bhd and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Leong Industries Bhd's current Interest Coverage is 685.54, which is 314% above median its own 10-year median of 165.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Leong Industries Bhd stock overvalued right now?
Based on GuruFocus' analysis, Hong Leong Industries Bhd (XKLS:3301) is currently considered Significantly Overvalued. The stock's GF Value™ is RM13.88, compared to a current price of RM18.60 — trading 34% above its estimated fair value. The current Interest Coverage is 685.54, which is 314% above median its 10-year median of 165.63 and 8100.2% above the Vehicles & Parts industry median of 8.36. Hong Leong Industries Bhd's overall GF Score™ is 82/100 with 7 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 Hong Leong Industries Bhd (XKLS:3301), the current Interest Coverage is 685.54 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 Hong Leong Industries Bhd (XKLS:3301) Overvalued in 2026?

Based on GuruFocus' analysis, Hong Leong Industries Bhd stock appears to be overvalued. The current stock price of RM18.60 is trading 34% above its estimated GF Value™ of RM13.88. GuruFocus considers Hong Leong Industries Bhd to be Significantly Overvalued.

Key valuation signals for XKLS:3301:

  • Interest Coverage: 685.54 (314% above median its 10-year median of 165.63)
  • GF Value™: RM13.88 vs. price of RM18.60 (34% above fair value)
  • GF Score™: 82/100 with 7 warning signs
  • Industry Position: 8100.2% above the Vehicles & Parts median (#34 of 1069)

No single metric tells the full story. See the XKLS:3301 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hong Leong Industries Bhd Business Description

Address Number 6, Jalan Damanlela, Level 31, Menara Hong Leong, Bukit Damansara, Kuala Lumpur, SGR, MYS, 50490
Hong Leong Industries Bhd is a Malaysia-based investment holding company. Its only operating segment is Consumer products. Consumer products segment manufacture and sale of consumer products comprises motorcycles, spare parts and ceramic tiles. Geographically, it derives a majority of its revenue from Malaysia.
82GF Score

Get the complete analysis for XKLS:3301

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

RM18.60
Price
RM13.88
GF Value