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. Chuan Huat Resources Bhd's
Operating Income
for the
three
months ended in Mar. 2026 was RM-0.4 Mil. Chuan Huat Resources Bhd's Interest Expense for the
three
months ended in Mar. 2026 was RM-2.6 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Chuan Huat Resources Bhds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Chuan Huat Resources Bhd's Interest Coverage or its related term are showing as below:
XKLS:7016'
s Interest Coverage Range Over the Past 10 Years
Min: 0.14 Med: 1.91 Max: 3.74
Current: 0.14
XKLS:7016's Interest Coverage is ranked worse than 99.11% of 1349
companies
in the Construction industry
Industry Median: 7.92
vs XKLS:7016: 0.14
Chuan Huat Resources Bhd (XKLS:7016) 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 .
Chuan Huat Resources Bhd Interest Coverage Related Terms
Chuan Huat Resources Bhd Interest Coverage Historical Data
* 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:7016 vs TT, JCI, CARR: Interest Coverage Comparison
For the Building Products & Equipment subindustry, Chuan Huat Resources 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.
Chuan Huat Resources Bhd Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, Chuan Huat Resources Bhd's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Chuan Huat Resources Bhd's Interest Coverage falls into.
Chuan Huat Resources 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:
Chuan Huat Resources 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.
What does a Interest Coverage of 0 (At Loss) mean?
Chuan Huat Resources Bhd (XKLS:7016) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Chuan Huat Resources Bhd and its competitors. Over the past decade, Chuan Huat Resources Bhd's Interest Coverage has ranged from 0.14 to 3.74. According to the industry distribution chart, Chuan Huat Resources Bhd ranks #1337 out of 1349 companies in the Construction industry, placing it in the top 99.1%.
Is Chuan Huat Resources Bhd's Interest Coverage too high?
Chuan Huat Resources Bhd's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 0.14 to a high of 3.74. Based on the distribution chart, Chuan Huat Resources Bhd ranks #1337 out of 1349 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Chuan Huat Resources Bhd has a GF Score™ of 25/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Chuan Huat Resources Bhd's Interest Coverage compare to TT and JCI?
According to the Construction industry distribution chart, Chuan Huat Resources Bhd ranks #1337 out of 1349 companies for Interest Coverage. This places Chuan Huat Resources Bhd in the lower half of its industry. The industry median Interest Coverage is 7.92. Historically, Chuan Huat Resources Bhd's own Interest Coverage has ranged from 0.14 to 3.74 over the past decade. 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 7.92, based on 1,349 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 Chuan Huat Resources Bhd and its competitors. For the Construction industry, the median Interest Coverage is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chuan Huat Resources 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 Chuan Huat Resources Bhd stock overvalued right now?
Based on GuruFocus' analysis, Chuan Huat Resources Bhd (XKLS:7016) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.36, compared to a current price of RM0.21 — trading 41.7% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Chuan Huat Resources Bhd's overall GF Score™ is 25/100 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 Chuan Huat Resources Bhd (XKLS:7016), the current Interest Coverage is 0 (At Loss) 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 Chuan Huat Resources Bhd (XKLS:7016) Overvalued in 2026?
Based on GuruFocus' analysis, Chuan Huat Resources Bhd stock appears to be undervalued.
The current stock price of RM0.21 is trading 41.7% below its estimated GF Value™ of RM0.36.
GuruFocus considers Chuan Huat Resources Bhd to be Possible Value Trap.
Key valuation signals for XKLS:7016:
Interest Coverage: 0 (At Loss)
GF Value™: RM0.36 vs. price of RM0.21 (41.7% below fair value)
No single metric tells the full story. See the XKLS:7016 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chuan Huat Resources Bhd is engaged in the building material business sector. The company operates in segments that are Hardware and Building materials, Retailing of IT related - products, Property, Restaurant Operations, and Corporate. In terms of revenue, the company earns majority of its revenue from the sales of Hardware and Building Materials. The company only has its operations present in Malaysia.
25GF Score
Get the complete analysis for XKLS:7016
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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