VSTECS Bhd (XKLS:5162) Financial Strength: 8 (As of Jun. 2026) — 11% 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:5162 VSTECS Bhd XKLS:5162
81 GF Score
Price RM1.60
GF Value RM1.70
Valuation Fairly Valued
! 2 Warning Signs
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What is VSTECS Bhd Financial Strength?

VSTECS Bhd XKLS:5162 +1.27% 81 Financial Strength is 8 as of Jun. 2026, which is 11% below its 10-year median of 9.00. GuruFocus rates XKLS:5162 with a GF Score™ of 81/100 and a GF Value™ of RM1.70 (Fairly Valued). The stock has 2 warning signs investors should review.

VSTECS Bhd has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

VSTECS Bhd shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

VSTECS Bhd's Interest Coverage for the quarter that ended in Jun. 2026 was 117.30. VSTECS Bhd's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.01. As of today, VSTECS Bhd's Altman Z-Score is 7.35.


VSTECS Bhd  (XKLS:5162) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

VSTECS Bhd has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


VSTECS Bhd Financial Strength Related Terms


XKLS:5162 vs SNX, ARW, AVT: Financial Strength Comparison

For the Electronics & Computer Distribution subindustry, VSTECS Bhd's Financial Strength, along with its competitors' market caps and Financial Strength 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.


VSTECS Bhd Financial Strength vs Hardware Industry

For the Hardware industry and Technology sector, VSTECS Bhd's Financial Strength distribution charts can be found below:

* The bar in red indicates where VSTECS Bhd's Financial Strength falls into.


XKLS:5162
81GF Score
VSTECS Bhd XKLS:5162
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

VSTECS Bhd Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

VSTECS Bhd's Interest Expense for the months ended in Jun. 2026 was RM0 Mil. Its Operating Income for the months ended in Jun. 2026 was RM36 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was RM0 Mil.

VSTECS Bhd's Interest Coverage for the quarter that ended in Jun. 2026 is

GuruFocus does not calculate VSTECS Bhd's interest coverage with the available data.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

VSTECS Bhd's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(62.761 + 0.229) / 4312.78
=0.01

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

VSTECS Bhd has a Z-score of 7.35, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 7.35 is strong.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 8 mean?
VSTECS Bhd (XKLS:5162) has a Financial Strength of 8 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on VSTECS Bhd and its competitors. This is 11% below median its historical median of 9.00. Over the past decade, VSTECS Bhd's Financial Strength has ranged from 4.00 to 10.00.
Is VSTECS Bhd's Financial Strength too high?
VSTECS Bhd's current Financial Strength of 8 is 11% below median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 10.00. Overall, VSTECS Bhd has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does VSTECS Bhd's Financial Strength compare to SNX and ARW?
VSTECS Bhd's Financial Strength of 8 can be compared against companies in the Hardware industry. Historically, VSTECS Bhd's own Financial Strength has ranged from 4.00 to 10.00 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 Financial Strength for a Hardware company?
A good Financial Strength depends on the Hardware industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on VSTECS Bhd and its competitors. VSTECS Bhd's current Financial Strength is 8, which is 11% below median its own 10-year median of 9.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VSTECS Bhd stock overvalued right now?
Based on GuruFocus' analysis, VSTECS Bhd (XKLS:5162) is currently considered Fairly Valued. The stock's GF Value™ is RM1.70, compared to a current price of RM1.60 — trading 5.9% below its estimated fair value. The current Financial Strength is 8, which is 11% below median its 10-year median of 9.00. VSTECS Bhd's overall GF Score™ is 81/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For VSTECS Bhd (XKLS:5162), the current Financial Strength is 8 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 VSTECS Bhd (XKLS:5162) Overvalued in 2026?

Based on GuruFocus' analysis, VSTECS Bhd stock appears to be undervalued. The current stock price of RM1.60 is trading 5.9% below its estimated GF Value™ of RM1.70. GuruFocus considers VSTECS Bhd to be Fairly Valued.

Key valuation signals for XKLS:5162:

  • Financial Strength: 8 (11% below median its 10-year median of 9.00)
  • GF Value™: RM1.70 vs. price of RM1.60 (5.9% below fair value)
  • GF Score™: 81/100 with 2 warning signs

No single metric tells the full story. See the XKLS:5162 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


VSTECS Bhd Business Description

Address Lot 3, Jalan Teknologi 3/5, Taman Sains Selangor, Kota Damansara, Petaling Jaya, SGR, MYS, 47810
VSTECS Bhd is engaged in the provision of e-commerce systems and solutions. The company distributes information and communications technology (ICT) products in Malaysia. These products consist of notebooks, personal computers, smartphones, tablets, wearables, printers, software, network and communication infrastructure, servers, and enterprise software. It operates in three segments. The ICT distribution segment distributes products to resellers, comprising mainly retailers. Its Enterprise systems segment markets products to system integrators and corporate dealers. The ICT services segment is involved in the provision of ICT services. The Enterprise Systems segment generates the maximum revenue.
81GF Score

Get the complete analysis for XKLS:5162

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

RM1.60
Price
RM1.70
GF Value