Southern Steel Bhd (XKLS:5665) Interest Coverage: 0 (At Loss) (As of Sep. 2025)


XKLS:5665 Southern Steel Bhd XKLS:5665
31 GF Score
Price RM0.39
GF Value RM0.26
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Southern Steel Bhd Interest Coverage?

Southern Steel Bhd XKLS:5665 31 Interest Coverage is 0 (At Loss) as of Sep. 2025. GuruFocus rates XKLS:5665 with a GF Score™ of 31/100 and a GF Value™ of RM0.26 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 456 Steel companies, Southern Steel Bhd ranks worse than 219298.03% 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. Southern Steel Bhd's Operating Income for the three months ended in Sep. 2025 was RM-22 Mil. Southern Steel Bhd's Interest Expense for the three months ended in Sep. 2025 was RM-3 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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


XKLS:5665's Interest Coverage is not ranked *
in the Steel industry.
Industry Median: 4.445
* Ranked among companies with meaningful Interest Coverage only.

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


Southern Steel Bhd  (XKLS:5665) 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 .


Southern Steel Bhd Interest Coverage Related Terms


Southern Steel Bhd Interest Coverage Historical Data

* Premium members only.

The historical data trend for Southern Steel 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.

Southern Steel Bhd Interest Coverage Chart

Southern Steel Bhd Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 3.05 4.09 0.00 0.00

Southern Steel Bhd Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25
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 0.00 0.00 0.00 0.91 0.00

XKLS:5665 vs NUE, STLD, RS: Interest Coverage Comparison

For the Steel subindustry, Southern Steel 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.


Southern Steel Bhd Interest Coverage vs Steel Industry

For the Steel industry and Basic Materials sector, Southern Steel Bhd's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Southern Steel Bhd's Interest Coverage falls into.


XKLS:5665
31GF Score
Southern Steel Bhd XKLS:5665
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Southern Steel 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.

Southern Steel Bhd's Interest Coverage for the fiscal year that ended in Jun. 2024 is calculated as

Here, for the fiscal year that ended in Jun. 2024, Southern Steel Bhd's Interest Expense was RM-32 Mil. Its Operating Income was RM-54 Mil. And its Long-Term Debt & Capital Lease Obligation was RM151 Mil.

Southern Steel Bhd did not have earnings to cover the interest expense.

Southern Steel Bhd's Interest Coverage for the quarter that ended in Sep. 2025 is calculated as

Here, for the three months ended in Sep. 2025, Southern Steel Bhd's Interest Expense was RM-3 Mil. Its Operating Income was RM-22 Mil. And its Long-Term Debt & Capital Lease Obligation was RM0 Mil.

Southern Steel Bhd did not have earnings to cover the 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.

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 0 (At Loss) mean?
Southern Steel Bhd (XKLS:5665) has a Interest Coverage of 0 (At Loss) as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Southern Steel Bhd and its competitors. According to the industry distribution chart, Southern Steel Bhd ranks #999999 out of 456 companies in the Steel industry.
Is Southern Steel Bhd's Interest Coverage too high?
Southern Steel Bhd's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Southern Steel Bhd ranks #999999 out of 456 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Southern Steel Bhd has a GF Score™ of 31/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Southern Steel Bhd's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Southern Steel Bhd ranks #999999 out of 456 companies for Interest Coverage. This places Southern Steel Bhd in the lower half of its industry. The industry median Interest Coverage is 4.45. 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 Steel company?
The median Interest Coverage among Steel companies is 4.45, based on 456 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. 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 Southern Steel Bhd and its competitors. For the Steel industry, the median Interest Coverage is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southern Steel Bhd's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southern Steel Bhd stock overvalued right now?
Based on GuruFocus' analysis, Southern Steel Bhd (XKLS:5665) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.26, compared to a current price of RM0.39 — trading 50% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Southern Steel Bhd's overall GF Score™ is 31/100 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 Southern Steel Bhd (XKLS:5665), the current Interest Coverage is 0 (At Loss) as of Sep. 2025. 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 Southern Steel Bhd (XKLS:5665) Overvalued in 2026?

Based on GuruFocus' analysis, Southern Steel Bhd stock appears to be overvalued. The current stock price of RM0.39 is trading 50% above its estimated GF Value™ of RM0.26. GuruFocus considers Southern Steel Bhd to be Significantly Overvalued.

Key valuation signals for XKLS:5665:

  • Interest Coverage: 0 (At Loss)
  • GF Value™: RM0.26 vs. price of RM0.39 (50% above fair value)
  • GF Score™: 31/100 with 3 warning signs

No single metric tells the full story. See the XKLS:5665 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Southern Steel Bhd Business Description

Address 2723, Lorong Perusahaan 12, Prai Industrial Estate, Prai, PNG, MYS, 13600
Southern Steel Bhd is an investment holding company involved in the manufacturing, sale and trading of steel bars and related products, while the principal activities of its subsidiaries include the manufacturing, sale and trading in billets, steel bars, wire rods, pre-stressed concrete strands, bars and wires, steel pipes, steel wires, and other related products, as well as rental of properties and investment holding. The company comprises the following reportable segments: Steel products, Investment holding and others and Hot rolled coil operation. The company derived the majority of revenue from the sale of its products: bars, wire rod, wire mesh, cut and bend and pre-stressed concrete wire.
31GF Score

Get the complete analysis for XKLS:5665

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

RM0.39
Price
RM0.26
GF Value