Velesto Energy Bhd (XKLS:5243) Interest Coverage: 1.45 (As of Jun. 2026) — 41% Below 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:5243 Velesto Energy Bhd XKLS:5243
51 GF Score
Price RM0.23
GF Value RM0.18
Valuation Modestly Overvalued
! 3 Warning Signs
View Full Analysis

What is Velesto Energy Bhd Interest Coverage?

Velesto Energy Bhd XKLS:5243 -6.12% 51 Interest Coverage is 1.45 as of Jun. 2026, which is 41% below its 10-year median of 2.46. GuruFocus rates XKLS:5243 with a GF Score™ of 51/100 and a GF Value™ of RM0.18 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 745 Oil & Gas companies, Velesto Energy Bhd ranks better than 73.29% 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 Jun. 2026 was RM2.6 Mil. Velesto Energy Bhd's Interest Expense for the three months ended in Jun. 2026 was RM-1.8 Mil. Velesto Energy Bhd's interest coverage for the quarter that ended in Jun. 2026 was 1.45. 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: 24.49
Current: 20.52


XKLS:5243's Interest Coverage is ranked better than
73.29% of 745 companies
in the Oil & Gas industry
Industry Median: 6.33 vs XKLS:5243: 20.52

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
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 30.27 35.34 23.30 21.29 1.45

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
51GF 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 Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, Velesto Energy Bhd's Interest Expense was RM-1.8 Mil. Its Operating Income was RM2.6 Mil. And its Long-Term Debt & Capital Lease Obligation was RM355.0 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*2.639/-1.816
=1.45

* 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 1.45 mean?
Velesto Energy Bhd (XKLS:5243) has a Interest Coverage of 1.45 as of Jun. 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 41% below median its historical median of 2.46. Over the past decade, Velesto Energy Bhd's Interest Coverage has ranged from 0.54 to 24.49. According to the industry distribution chart, Velesto Energy Bhd ranks #199 out of 745 companies in the Oil & Gas industry, placing it in the top 26.7%.
Is Velesto Energy Bhd's Interest Coverage too high?
Velesto Energy Bhd's current Interest Coverage of 1.45 is 41% below 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 24.49. The Oil & Gas industry median Interest Coverage is 6.33. Velesto Energy Bhd's value of 1.45 is 77.1% below this industry median. Based on the distribution chart, Velesto Energy Bhd ranks #199 out of 745 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Velesto Energy Bhd has a GF Score™ of 51/100 and is considered Modestly 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 #199 out of 745 companies for Interest Coverage. This puts Velesto Energy Bhd in the upper half of its industry. The industry median Interest Coverage is 6.33. Velesto Energy Bhd's value of 1.45 is 77.1% below this benchmark. Historically, Velesto Energy Bhd's own Interest Coverage has ranged from 0.54 to 24.49 over the past decade. While the company's 10-year median is 2.46 vs. the industry median of 6.33, Velesto Energy Bhd has consistently been below 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 6.33, based on 745 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 1.45 is 77.1% below 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 6.33 — 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 1.45, which is 41% below 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 Modestly Overvalued. The stock's GF Value™ is RM0.18, compared to a current price of RM0.23 — trading 27.8% above its estimated fair value. The current Interest Coverage is 1.45, which is 41% below median its 10-year median of 2.46 and 77.1% below the Oil & Gas industry median of 6.33. Velesto Energy Bhd's overall GF Score™ is 51/100 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 1.45 as of Jun. 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 RM0.23 is trading 27.8% above its estimated GF Value™ of RM0.18. GuruFocus considers Velesto Energy Bhd to be Modestly Overvalued.

Key valuation signals for XKLS:5243:

  • Interest Coverage: 1.45 (41% below median its 10-year median of 2.46)
  • GF Value™: RM0.18 vs. price of RM0.23 (27.8% above fair value)
  • GF Score™: 51/100 with 3 warning signs
  • Industry Position: 77.1% below the Oil & Gas median (#199 of 745)

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.
51GF 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.

RM0.23
Price
RM0.18
GF Value