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Varia BhdXKLS:5006 52 Interest Coverage is 9.26 as of Mar. 2026, which is 29% below its 10-year median of 13.03. GuruFocus rates XKLS:5006 with a GF Score™ of 52/100 and a GF Value™ of RM2.63 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,364 Construction companies, Varia Bhd ranks worse than 50.37% 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. Varia Bhd's
Operating Income
for the
three
months ended in Mar. 2026 was RM24.0 Mil. Varia Bhd's Interest Expense for the
three
months ended in Mar. 2026 was RM-2.6 Mil.
Varia Bhd's interest coverage for the quarter that ended in Mar. 2026 was 9.26.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Varia Bhd's Interest Coverage or its related term are showing as below:
XKLS:5006'
s Interest Coverage Range Over the Past 10 Years
Min: 1.71 Med: 13.03 Max: 38.7
Current: 7.75
XKLS:5006's Interest Coverage is ranked worse than 50.37% of 1364
companies
in the Construction industry
Industry Median: 7.9
vs XKLS:5006: 7.75
Varia Bhd (XKLS:5006) 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 .
Varia Bhd Interest Coverage Related Terms
Varia Bhd Interest Coverage Historical Data
* Premium members only.
The historical data trend for Varia 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:5006 vs PWR, EME: Interest Coverage Comparison
For the Engineering & Construction subindustry, Varia 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.
Varia Bhd Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, Varia Bhd's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Varia 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.
Varia Bhd (XKLS:5006) has a Interest Coverage of 9.26 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Varia Bhd and its competitors. This is 29% below median its historical median of 13.03. Over the past decade, Varia Bhd's Interest Coverage has ranged from 1.71 to 38.70. According to the industry distribution chart, Varia Bhd ranks #687 out of 1364 companies in the Construction industry, placing it in the top 50.4%.
Is Varia Bhd's Interest Coverage too high?
Varia Bhd's current Interest Coverage of 9.26 is 29% below median its 10-year median of 13.03. Over the past 10 years, this metric has ranged from a low of 1.71 to a high of 38.70. The Construction industry median Interest Coverage is 7.90. Varia Bhd's value of 9.26 is 17.2% above this industry median. Based on the distribution chart, Varia Bhd ranks #687 out of 1364 companies in the Construction industry, which is below the industry midpoint. Overall, Varia Bhd has a GF Score™ of 52/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Varia Bhd's Interest Coverage compare to PWR and EME?
According to the Construction industry distribution chart, Varia Bhd ranks #687 out of 1364 companies for Interest Coverage. This places Varia Bhd in the lower half of its industry. The industry median Interest Coverage is 7.90. Varia Bhd's value of 9.26 is 17.2% above this benchmark. Historically, Varia Bhd's own Interest Coverage has ranged from 1.71 to 38.70 over the past decade. While the company's 10-year median is 13.03 vs. the industry median of 7.90, Varia 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 Construction company?
The median Interest Coverage among Construction companies is 7.90, based on 1,364 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. Varia Bhd's current Interest Coverage of 9.26 is 17.2% 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 Varia Bhd and its competitors. For the Construction industry, the median Interest Coverage is 7.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Varia Bhd's current Interest Coverage is 9.26, which is 29% below median its own 10-year median of 13.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Varia Bhd stock overvalued right now?
Based on GuruFocus' analysis, Varia Bhd (XKLS:5006) is currently considered Possible Value Trap. The stock's GF Value™ is RM2.63, compared to a current price of RM0.85 — trading 67.7% below its estimated fair value. The current Interest Coverage is 9.26, which is 29% below median its 10-year median of 13.03 and 17.2% above the Construction industry median of 7.90. Varia Bhd's overall GF Score™ is 52/100 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 Varia Bhd (XKLS:5006), the current Interest Coverage is 9.26 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 Varia Bhd (XKLS:5006) Overvalued in 2026?
Based on GuruFocus' analysis, Varia Bhd stock appears to be undervalued.
The current stock price of RM0.85 is trading 67.7% below its estimated GF Value™ of RM2.63.
GuruFocus considers Varia Bhd to be Possible Value Trap.
Key valuation signals for XKLS:5006:
Interest Coverage: 9.26 (29% below median its 10-year median of 13.03)
GF Value™: RM2.63 vs. price of RM0.85 (67.7% below fair value)
Industry Position: 17.2% above the Construction median (#687 of 1364)
No single metric tells the full story. See the XKLS:5006 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Varia Bhd formerly Stella Holdings Bhd is an investment holding company. The company's segment includes Investment holding; Construction; Property investment; Property development; and others. It generates maximum revenue from the Construction segment. The Construction segment includes Construction of civil and structural, mechanical and electrical works and project management.
52GF Score
Get the complete analysis for XKLS:5006
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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