Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) Effective Interest Rate on Debt %: 4.27% (As of Mar. 2026)

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KUW:SHIP Heavy Engineering Industries and Shipbuilding Co KSC KUW:SHIP
78 GF Score
Price KWD0.68
GF Value KWD1.05
Valuation Possible Value Trap
! 6 Warning Signs
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What is Heavy Engineering Industries and Shipbuilding Co KSC Effective Interest Rate on Debt %?

Heavy Engineering Industries and Shipbuilding Co KSC KUW:SHIP +0.59% 78 Effective Interest Rate on Debt % is 4.27% as of Mar. 2026. GuruFocus rates KUW:SHIP with a GF Score™ of 78/100 and a GF Value™ of KWD1.05 (Possible Value Trap). The stock has 6 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Heavy Engineering Industries and Shipbuilding Co KSC's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was KWD2.6 Mil. Heavy Engineering Industries and Shipbuilding Co KSC's average total debt for the quarter that ended in Mar. 2026 was KWD60.4 Mil. Therefore, Heavy Engineering Industries and Shipbuilding Co KSC's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 4.27%.


Heavy Engineering Industries and Shipbuilding Co KSC  (KUW:SHIP) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Heavy Engineering Industries and Shipbuilding Co KSC Effective Interest Rate on Debt % Related Terms


Heavy Engineering Industries and Shipbuilding Co KSC Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Heavy Engineering Industries and Shipbuilding Co KSC's Effective Interest Rate on Debt % 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.

Heavy Engineering Industries and Shipbuilding Co KSC Effective Interest Rate on Debt % Chart

Heavy Engineering Industries and Shipbuilding Co KSC Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.24 2.88 5.26 5.15 4.64

Heavy Engineering Industries and Shipbuilding Co KSC Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % 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 4.95 5.01 4.98 3.56 4.27

KUW:SHIP vs PWR, FIX, EME: Effective Interest Rate on Debt % Comparison

For the Engineering & Construction subindustry, Heavy Engineering Industries and Shipbuilding Co KSC's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.


Heavy Engineering Industries and Shipbuilding Co KSC Effective Interest Rate on Debt % vs Construction Industry

For the Construction industry and Industrials sector, Heavy Engineering Industries and Shipbuilding Co KSC's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Heavy Engineering Industries and Shipbuilding Co KSC's Effective Interest Rate on Debt % falls into.


KUW:SHIP
78GF Score
Heavy Engineering Industries and Shipbuilding Co KSC KUW:SHIP
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Heavy Engineering Industries and Shipbuilding Co KSC Effective Interest Rate on Debt % Calculation

Heavy Engineering Industries and Shipbuilding Co KSC's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -2.182/( (42.144+51.973)/ 2 )
=-1  *  -2.182/47.0585
=4.64 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=2.242 + 39.902
=42.144

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=6.253 + 45.72
=51.973

Heavy Engineering Industries and Shipbuilding Co KSC's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -2.58/( (51.973+68.86)/ 2 )
=-1  *  -2.58/60.4165
=4.27 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=6.253 + 45.72
=51.973

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=5.727 + 63.133
=68.86

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 4.27% mean?
Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) has a Effective Interest Rate on Debt % of 4.27% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Heavy Engineering Industries and Shipbuilding Co KSC and its competitors.
Is Heavy Engineering Industries and Shipbuilding Co KSC's Effective Interest Rate on Debt % too high?
Heavy Engineering Industries and Shipbuilding Co KSC's current Effective Interest Rate on Debt % is 4.27%. Overall, Heavy Engineering Industries and Shipbuilding Co KSC has a GF Score™ of 78/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Heavy Engineering Industries and Shipbuilding Co KSC's Effective Interest Rate on Debt % compare to PWR and FIX?
Heavy Engineering Industries and Shipbuilding Co KSC's Effective Interest Rate on Debt % of 4.27% can be compared against companies in the Construction industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Construction company?
A good Effective Interest Rate on Debt % depends on the Construction industry context. However, Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Heavy Engineering Industries and Shipbuilding Co KSC and its competitors. Heavy Engineering Industries and Shipbuilding Co KSC's current Effective Interest Rate on Debt % is 4.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heavy Engineering Industries and Shipbuilding Co KSC stock overvalued right now?
Based on GuruFocus' analysis, Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) is currently considered Possible Value Trap. The stock's GF Value™ is KWD1.05, compared to a current price of KWD0.68 — trading 35.4% below its estimated fair value. The current Effective Interest Rate on Debt % is 4.27%. Heavy Engineering Industries and Shipbuilding Co KSC's overall GF Score™ is 78/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP), the current Effective Interest Rate on Debt % is 4.27% 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 Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) Overvalued in 2026?

Based on GuruFocus' analysis, Heavy Engineering Industries and Shipbuilding Co KSC stock appears to be undervalued. The current stock price of KWD0.68 is trading 35.4% below its estimated GF Value™ of KWD1.05. GuruFocus considers Heavy Engineering Industries and Shipbuilding Co KSC to be Possible Value Trap.

Key valuation signals for KUW:SHIP:

  • Effective Interest Rate on Debt %: 4.27%
  • GF Value™: KWD1.05 vs. price of KWD0.68 (35.4% below fair value)
  • GF Score™: 78/100 with 6 warning signs

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


Heavy Engineering Industries and Shipbuilding Co KSC Business Description

Address Shuwaik Port, Gate No.7, P.O. Box 21998, Safat, Kuwait, KWT, 13080
Heavy Engineering Industries and Shipbuilding Co KSC is engaged in engineering, procurement, and construction (EPC) contracting, focusing on the shipping and maritime industry in Kuwait. The Company serves sectors including oil and gas, refineries, petrochemicals, power, water distillation and desalination, shipbuilding, ship repair, dredging, and maritime construction. Its activities include industrial and marine works, installation and maintenance services, trading of equipment and spare parts, and contracting and tendering with international companies. It also provides services such as shipyard operations, fabrication, testing and calibration, quality control, scaffolding, galvanizing, onshore and offshore operations, technical manpower supply, and design and engineering services.
78GF Score

Get the complete analysis for KUW:SHIP

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

KWD0.68
Price
KWD1.05
GF Value