Hwa Tai Industries Bhd (XKLS:8478) Interest Coverage: 1.30 (As of Mar. 2026) — 20% Below Median

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XKLS:8478 Hwa Tai Industries Bhd XKLS:8478
32 GF Score
Price RM0.38
GF Value RM0.64
Valuation Possible Value Trap
! 7 Warning Signs
View Full Analysis

What is Hwa Tai Industries Bhd Interest Coverage?

Hwa Tai Industries Bhd XKLS:8478 -6.25% 32 Interest Coverage is 1.30 as of Mar. 2026, which is 20% below its 10-year median of 1.62. GuruFocus rates XKLS:8478 with a GF Score™ of 32/100 and a GF Value™ of RM0.64 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,516 Consumer Packaged Goods companies, Hwa Tai Industries Bhd ranks worse than 85.29% 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. Hwa Tai Industries Bhd's Operating Income for the three months ended in Mar. 2026 was RM0.6 Mil. Hwa Tai Industries Bhd's Interest Expense for the three months ended in Mar. 2026 was RM-0.5 Mil. Hwa Tai Industries Bhd's interest coverage for the quarter that ended in Mar. 2026 was 1.30. 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. Hwa Tai Industries Bhd interest coverage is 1.74, which is low.

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

XKLS:8478' s Interest Coverage Range Over the Past 10 Years
Min: 1.38   Med: 1.62   Max: 4.12
Current: 1.74


XKLS:8478's Interest Coverage is ranked worse than
85.29% of 1516 companies
in the Consumer Packaged Goods industry
Industry Median: 8.605 vs XKLS:8478: 1.74

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


Hwa Tai Industries Bhd  (XKLS:8478) 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 .


Hwa Tai Industries Bhd Interest Coverage Related Terms


Hwa Tai Industries Bhd Interest Coverage Historical Data

* Premium members only.

The historical data trend for Hwa Tai Industries 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.

Hwa Tai Industries Bhd Interest Coverage Chart

Hwa Tai Industries 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 0.00 1.42 1.38

Hwa Tai Industries 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 1.29 1.21 1.16 3.31 1.30

XKLS:8478 vs KHC, GIS: Interest Coverage Comparison

For the Packaged Foods subindustry, Hwa Tai Industries 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.


Hwa Tai Industries Bhd Interest Coverage vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Hwa Tai Industries Bhd's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Hwa Tai Industries Bhd's Interest Coverage falls into.


XKLS:8478
32GF Score
Hwa Tai Industries Bhd XKLS:8478
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hwa Tai Industries 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.

Hwa Tai Industries 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, Hwa Tai Industries Bhd's Interest Expense was RM-1.9 Mil. Its Operating Income was RM2.6 Mil. And its Long-Term Debt & Capital Lease Obligation was RM1.4 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*2.594/-1.876
=1.38

Hwa Tai Industries Bhd's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Hwa Tai Industries Bhd's Interest Expense was RM-0.5 Mil. Its Operating Income was RM0.6 Mil. And its Long-Term Debt & Capital Lease Obligation was RM1.1 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*0.591/-0.454
=1.30

* 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 1.30 mean?
Hwa Tai Industries Bhd (XKLS:8478) has a Interest Coverage of 1.30 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hwa Tai Industries Bhd and its competitors. This is 20% below median its historical median of 1.62. Over the past decade, Hwa Tai Industries Bhd's Interest Coverage has ranged from 1.38 to 4.12. According to the industry distribution chart, Hwa Tai Industries Bhd ranks #1293 out of 1516 companies in the Consumer Packaged Goods industry, placing it in the top 85.3%.
Is Hwa Tai Industries Bhd's Interest Coverage too high?
Hwa Tai Industries Bhd's current Interest Coverage of 1.30 is 20% below median its 10-year median of 1.62. Over the past 10 years, this metric has ranged from a low of 1.38 to a high of 4.12. The Consumer Packaged Goods industry median Interest Coverage is 8.61. Hwa Tai Industries Bhd's value of 1.30 is 84.9% below this industry median. Based on the distribution chart, Hwa Tai Industries Bhd ranks #1293 out of 1516 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Hwa Tai Industries Bhd has a GF Score™ of 32/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hwa Tai Industries Bhd's Interest Coverage compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Hwa Tai Industries Bhd ranks #1293 out of 1516 companies for Interest Coverage. This places Hwa Tai Industries Bhd in the lower half of its industry. The industry median Interest Coverage is 8.61. Hwa Tai Industries Bhd's value of 1.30 is 84.9% below this benchmark. Historically, Hwa Tai Industries Bhd's own Interest Coverage has ranged from 1.38 to 4.12 over the past decade. While the company's 10-year median is 1.62 vs. the industry median of 8.61, Hwa Tai Industries 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 a Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.61, based on 1,516 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. Hwa Tai Industries Bhd's current Interest Coverage of 1.30 is 84.9% 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 Hwa Tai Industries Bhd and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hwa Tai Industries Bhd's current Interest Coverage is 1.30, which is 20% below median its own 10-year median of 1.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hwa Tai Industries Bhd stock overvalued right now?
Based on GuruFocus' analysis, Hwa Tai Industries Bhd (XKLS:8478) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.64, compared to a current price of RM0.38 — trading 41.4% below its estimated fair value. The current Interest Coverage is 1.30, which is 20% below median its 10-year median of 1.62 and 84.9% below the Consumer Packaged Goods industry median of 8.61. Hwa Tai Industries Bhd's overall GF Score™ is 32/100 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 Hwa Tai Industries Bhd (XKLS:8478), the current Interest Coverage is 1.30 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 Hwa Tai Industries Bhd (XKLS:8478) Overvalued in 2026?

Based on GuruFocus' analysis, Hwa Tai Industries Bhd stock appears to be undervalued. The current stock price of RM0.38 is trading 41.4% below its estimated GF Value™ of RM0.64. GuruFocus considers Hwa Tai Industries Bhd to be Possible Value Trap.

Key valuation signals for XKLS:8478:

  • Interest Coverage: 1.30 (20% below median its 10-year median of 1.62)
  • GF Value™: RM0.64 vs. price of RM0.38 (41.4% below fair value)
  • GF Score™: 32/100 with 7 warning signs
  • Industry Position: 84.9% below the Consumer Packaged Goods median (#1293 of 1516)

No single metric tells the full story. See the XKLS:8478 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hwa Tai Industries Bhd Business Description

Address Jalan ML 16, ML-16 Industrial Park, No. L9, Seri Kembangan, SGR, MYS, 43300
Hwa Tai Industries Bhd operates as a biscuit manufacturing and investment holding. Its activities are biscuit manufacturing, property holding, and trading. It operates through the following segments: Manufacturing and Trading. The company's products include crackers, cookies, assorted biscuits, cakes, and cream sandwiches, and are marketed under the brand names of Hwa Tai and Luxury. The majority of revenue is from the Manufacturing segment. Geographically, it operates in Malaysia, Thailand, the Philippines, Mauritius, and Other countries, with the majority is from Malaysia.
32GF Score

Get the complete analysis for XKLS:8478

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

RM0.38
Price
RM0.64
GF Value