Borouge (ADX:BOROUGE) Interest Coverage: 6.55 (As of Jun. 2026) — 33% Below Median

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ADX:BOROUGE Borouge PLC ADX:BOROUGE
48 GF Score
Price د.إ2.42
GF Value د.إ6.42
Valuation Significantly Undervalued
! 3 Warning Signs
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What is Borouge Interest Coverage?

Borouge ADX:BOROUGE -0.82% 48 Interest Coverage is 6.55 as of Jun. 2026, which is 33% below its 10-year median of 9.82. GuruFocus rates ADX:BOROUGE with a GF Score™ of 48/100 and a GF Value™ of د.إ6.42 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,261 Chemicals companies, Borouge ranks worse than 55.04% 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. Borouge's Operating Income for the three months ended in Jun. 2026 was د.إ1,101 Mil. Borouge's Interest Expense for the three months ended in Jun. 2026 was د.إ-168 Mil. Borouge's interest coverage for the quarter that ended in Jun. 2026 was 6.55. The higher the ratio, the stronger the company's financial strength is.

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

ADX:BOROUGE' s Interest Coverage Range Over the Past 10 Years
Min: 7.24   Med: 9.82   Max: 342.15
Current: 8.8


ADX:BOROUGE's Interest Coverage is ranked worse than
55.04% of 1261 companies
in the Chemicals industry
Industry Median: 11.37 vs ADX:BOROUGE: 8.80

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


Borouge  (ADX:BOROUGE) 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 .


Borouge Interest Coverage Related Terms


Borouge Interest Coverage Historical Data

* Premium members only.

The historical data trend for Borouge'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.

Borouge Interest Coverage Chart

Borouge Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
342.15 N/A 7.24 9.71 9.93

Borouge Quarterly Data
Mar21 Mar22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 6.97 10.39 12.44 5.97 6.55

ADX:BOROUGE vs LIN, SHW, ECL: Interest Coverage Comparison

For the Specialty Chemicals subindustry, Borouge'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.


Borouge Interest Coverage vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Borouge's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Borouge's Interest Coverage falls into.


ADX:BOROUGE
48GF Score
Borouge PLC ADX:BOROUGE
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Borouge 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.

Borouge'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, Borouge's Interest Expense was د.إ-627 Mil. Its Operating Income was د.إ6,227 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ575 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*6226.742/-626.782
=9.93

Borouge's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, Borouge's Interest Expense was د.إ-168 Mil. Its Operating Income was د.إ1,101 Mil. And its Long-Term Debt & Capital Lease Obligation was د.إ11,020 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*1100.807/-168.123
=6.55

* 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 6.55 mean?
Borouge (ADX:BOROUGE) has a Interest Coverage of 6.55 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Borouge and its competitors. This is 33% below median its historical median of 9.82. Over the past decade, Borouge's Interest Coverage has ranged from 7.24 to 342.15. According to the industry distribution chart, Borouge ranks #694 out of 1261 companies in the Chemicals industry, placing it in the top 55%.
Is Borouge's Interest Coverage too high?
Borouge's current Interest Coverage of 6.55 is 33% below median its 10-year median of 9.82. Over the past 10 years, this metric has ranged from a low of 7.24 to a high of 342.15. The Chemicals industry median Interest Coverage is 11.37. Borouge's value of 6.55 is 42.4% below this industry median. Based on the distribution chart, Borouge ranks #694 out of 1261 companies in the Chemicals industry, which is below the industry midpoint. Overall, Borouge has a GF Score™ of 48/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Borouge's Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, Borouge ranks #694 out of 1261 companies for Interest Coverage. This places Borouge in the lower half of its industry. The industry median Interest Coverage is 11.37. Borouge's value of 6.55 is 42.4% below this benchmark. Historically, Borouge's own Interest Coverage has ranged from 7.24 to 342.15 over the past decade. While the company's 10-year median is 9.82 vs. the industry median of 11.37, Borouge 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 11.37, based on 1,261 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. Borouge's current Interest Coverage of 6.55 is 42.4% 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 Borouge and its competitors. For the Chemicals industry, the median Interest Coverage is 11.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Borouge's current Interest Coverage is 6.55, which is 33% below median its own 10-year median of 9.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Borouge stock overvalued right now?
Based on GuruFocus' analysis, Borouge (ADX:BOROUGE) is currently considered Significantly Undervalued. The stock's GF Value™ is د.إ6.42, compared to a current price of د.إ2.42 — trading 62.3% below its estimated fair value. The current Interest Coverage is 6.55, which is 33% below median its 10-year median of 9.82 and 42.4% below the Chemicals industry median of 11.37. Borouge's overall GF Score™ is 48/100 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 Borouge (ADX:BOROUGE), the current Interest Coverage is 6.55 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 Borouge (ADX:BOROUGE) Overvalued in 2026?

Based on GuruFocus' analysis, Borouge stock appears to be undervalued. The current stock price of د.إ2.42 is trading 62.3% below its estimated GF Value™ of د.إ6.42. GuruFocus considers Borouge to be Significantly Undervalued.

Key valuation signals for ADX:BOROUGE:

  • Interest Coverage: 6.55 (33% below median its 10-year median of 9.82)
  • GF Value™: د.إ6.42 vs. price of د.إ2.42 (62.3% below fair value)
  • GF Score™: 48/100 with 3 warning signs
  • Industry Position: 42.4% below the Chemicals median (#694 of 1261)

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


Borouge Business Description

Address El Corniche Street, PO Box 6925, Borouge Tower, Sheikh Khalifa Energy Complex, Abu Dhabi, ARE
Borouge PLC is a petrochemical company that provides solutions of polyolefins such as polyethylene and polypropylene for a wide range of industries such as packaging, infrastructure, energy, mobility, agriculture, and healthcare. Geographically, the company derives maximum revenue from PRC and has a presence in India, United Arab Emirates, Austria, Egypt, Pakistan, Vietnam, Saudi Arabia, and other countries.
48GF Score

Get the complete analysis for ADX:BOROUGE

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

د.إ2.42
Price
د.إ6.42
GF Value