Velesto Energy Bhd (XKLS:5243) Interest Coverage: 21.29 (As of Mar. 2026) — 765% Above Median

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XKLS:5243 Velesto Energy Bhd XKLS:5243
59 GF Score
Price RM0.25
GF Value RM0.18
Valuation Significantly Overvalued
! 3 Warning Signs
View Full Analysis

What is Velesto Energy Bhd Interest Coverage?

Velesto Energy Bhd XKLS:5243 -3.85% 59 Interest Coverage is 21.29 as of Mar. 2026, which is 765% above its 10-year median of 2.46. GuruFocus rates XKLS:5243 with a GF Score™ of 59/100 and a GF Value™ of RM0.18 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 730 Oil & Gas companies, Velesto Energy Bhd ranks better than 76.71% 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. Velesto Energy Bhd's Operating Income for the three months ended in Mar. 2026 was RM36.6 Mil. Velesto Energy Bhd's Interest Expense for the three months ended in Mar. 2026 was RM-1.7 Mil. Velesto Energy Bhd's interest coverage for the quarter that ended in Mar. 2026 was 21.29. The higher the ratio, the stronger the company's financial strength is.

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

XKLS:5243' s Interest Coverage Range Over the Past 10 Years
Min: 0.54   Med: 2.46   Max: 27.77
Current: 27.77


XKLS:5243's Interest Coverage is ranked better than
76.71% of 730 companies
in the Oil & Gas industry
Industry Median: 5.89 vs XKLS:5243: 27.77

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


Velesto Energy Bhd  (XKLS:5243) 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 .


Velesto Energy Bhd Interest Coverage Related Terms


Velesto Energy Bhd Interest Coverage Historical Data

* Premium members only.

The historical data trend for Velesto Energy 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.

Velesto Energy Bhd Interest Coverage Chart

Velesto Energy 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 0.00 0.00 3.56 8.57 24.49

Velesto Energy 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 26.36 30.27 35.34 23.30 21.29

XKLS:5243 vs NE, RIG, VAL: Interest Coverage Comparison

For the Oil & Gas Drilling subindustry, Velesto Energy 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.


Velesto Energy Bhd Interest Coverage vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Velesto Energy Bhd's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Velesto Energy Bhd's Interest Coverage falls into.


XKLS:5243
59GF Score
Velesto Energy Bhd XKLS:5243
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Velesto Energy 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.

Velesto Energy 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, Velesto Energy Bhd's Interest Expense was RM-9.5 Mil. Its Operating Income was RM232.4 Mil. And its Long-Term Debt & Capital Lease Obligation was RM6.6 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*232.38/-9.49
=24.49

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

Here, for the three months ended in Mar. 2026, Velesto Energy Bhd's Interest Expense was RM-1.7 Mil. Its Operating Income was RM36.6 Mil. And its Long-Term Debt & Capital Lease Obligation was RM5.9 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*36.617/-1.72
=21.29

* 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 21.29 mean?
Velesto Energy Bhd (XKLS:5243) has a Interest Coverage of 21.29 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Velesto Energy Bhd and its competitors. This is 765% above median its historical median of 2.46. Over the past decade, Velesto Energy Bhd's Interest Coverage has ranged from 0.54 to 27.77. According to the industry distribution chart, Velesto Energy Bhd ranks #170 out of 730 companies in the Oil & Gas industry, placing it in the top 23.3%.
Is Velesto Energy Bhd's Interest Coverage too high?
Velesto Energy Bhd's current Interest Coverage of 21.29 is 765% above median its 10-year median of 2.46. Over the past 10 years, this metric has ranged from a low of 0.54 to a high of 27.77. The Oil & Gas industry median Interest Coverage is 5.89. Velesto Energy Bhd's value of 21.29 is 261.5% above this industry median. Based on the distribution chart, Velesto Energy Bhd ranks #170 out of 730 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Velesto Energy Bhd has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Velesto Energy Bhd's Interest Coverage compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Velesto Energy Bhd ranks #170 out of 730 companies for Interest Coverage. This places Velesto Energy Bhd in the top 23% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 5.89. Velesto Energy Bhd's value of 21.29 is 261.5% above this benchmark. Historically, Velesto Energy Bhd's own Interest Coverage has ranged from 0.54 to 27.77 over the past decade. While the company's 10-year median is 2.46 vs. the industry median of 5.89, Velesto Energy 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 an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 730 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. Velesto Energy Bhd's current Interest Coverage of 21.29 is 261.5% 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 Velesto Energy Bhd and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velesto Energy Bhd's current Interest Coverage is 21.29, which is 765% above median its own 10-year median of 2.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Velesto Energy Bhd stock overvalued right now?
Based on GuruFocus' analysis, Velesto Energy Bhd (XKLS:5243) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.18, compared to a current price of RM0.25 — trading 38.9% above its estimated fair value. The current Interest Coverage is 21.29, which is 765% above median its 10-year median of 2.46 and 261.5% above the Oil & Gas industry median of 5.89. Velesto Energy Bhd's overall GF Score™ is 59/100 with 3 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 Velesto Energy Bhd (XKLS:5243), the current Interest Coverage is 21.29 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 Velesto Energy Bhd (XKLS:5243) Overvalued in 2026?

Based on GuruFocus' analysis, Velesto Energy Bhd stock appears to be overvalued. The current stock price of RM0.25 is trading 38.9% above its estimated GF Value™ of RM0.18. GuruFocus considers Velesto Energy Bhd to be Significantly Overvalued.

Key valuation signals for XKLS:5243:

  • Interest Coverage: 21.29 (765% above median its 10-year median of 2.46)
  • GF Value™: RM0.18 vs. price of RM0.25 (38.9% above fair value)
  • GF Score™: 59/100 with 3 warning signs
  • Industry Position: 261.5% above the Oil & Gas median (#170 of 730)

No single metric tells the full story. See the XKLS:5243 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Velesto Energy Bhd Business Description

Industry EnergyOil & Gas
Address Jalan Stesen Sentral 5, Level 18, Block 3A, Plaza Sentral, Kuala Lumpur, SGR, MYS, 50470
Velesto Energy Bhd is a Malaysia-based company that provides services to the oil and gas industry. It is engaged in the provision of drilling services for exploration, development, and production wells and workover services to the upstream sector of the oil and gas industry. It is also engaged in the provision of threading, inspection, and repair services for Oil Country Tubular Goods in Malaysia and overseas. The company operates under two segments, namely drilling services and others. The company has a geographical presence in Malaysia and other countries.
59GF Score

Get the complete analysis for XKLS:5243

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

RM0.25
Price
RM0.18
GF Value