Air Arabia PJSCDFM:AIRARABIA -2.14%80 Interest Coverage is 8.37 as of Mar. 2026, which is 16% above its 10-year median of 7.23. GuruFocus rates DFM:AIRARABIA with a GF Score™ of 80/100 and a GF Value™ of د.إ3.83 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 840 Transportation companies, Air Arabia PJSC ranks better than 75.83% 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. Air Arabia PJSC's
Operating Income
for the
three
months ended in Mar. 2026 was د.إ182 Mil. Air Arabia PJSC's Interest Expense for the
three
months ended in Mar. 2026 was د.إ-22 Mil.
Air Arabia PJSC's interest coverage for the quarter that ended in Mar. 2026 was 8.37.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Air Arabia PJSC's Interest Coverage or its related term are showing as below:
DFM:AIRARABIA'
s Interest Coverage Range Over the Past 10 Years
Min: 3.89 Med: 7.23 Max: 19.04
Current: 16.62
DFM:AIRARABIA's Interest Coverage is ranked better than 75.83% of 840
companies
in the Transportation industry
Industry Median: 5.77
vs DFM:AIRARABIA: 16.62
Air Arabia PJSC (DFM:AIRARABIA) 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 .
Air Arabia PJSC Interest Coverage Related Terms
Air Arabia PJSC Interest Coverage Historical Data
* Premium members only.
The historical data trend for Air Arabia PJSC'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.
DFM:AIRARABIA vs DAL, UAL, LUV: Interest Coverage Comparison
For the Airlines subindustry, Air Arabia PJSC'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.
Air Arabia PJSC Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, Air Arabia PJSC's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Air Arabia PJSC's Interest Coverage falls into.
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:
* 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.
Air Arabia PJSC (DFM:AIRARABIA) has a Interest Coverage of 8.37 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Air Arabia PJSC and its competitors. This is 16% above median its historical median of 7.23. Over the past decade, Air Arabia PJSC's Interest Coverage has ranged from 3.89 to 19.04. According to the industry distribution chart, Air Arabia PJSC ranks #203 out of 840 companies in the Transportation industry, placing it in the top 24.2%.
Is Air Arabia PJSC's Interest Coverage too high?
Air Arabia PJSC's current Interest Coverage of 8.37 is 16% above median its 10-year median of 7.23. Over the past 10 years, this metric has ranged from a low of 3.89 to a high of 19.04. The Transportation industry median Interest Coverage is 5.77. Air Arabia PJSC's value of 8.37 is 45.1% above this industry median. Based on the distribution chart, Air Arabia PJSC ranks #203 out of 840 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Air Arabia PJSC has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Air Arabia PJSC's Interest Coverage compare to DAL and UAL?
According to the Transportation industry distribution chart, Air Arabia PJSC ranks #203 out of 840 companies for Interest Coverage. This places Air Arabia PJSC in the top 24% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 5.77. Air Arabia PJSC's value of 8.37 is 45.1% above this benchmark. Historically, Air Arabia PJSC's own Interest Coverage has ranged from 3.89 to 19.04 over the past decade. While the company's 10-year median is 7.23 vs. the industry median of 5.77, Air Arabia PJSC has consistently been above 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 Transportation company?
The median Interest Coverage among Transportation companies is 5.77, based on 840 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. Air Arabia PJSC's current Interest Coverage of 8.37 is 45.1% above 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 Air Arabia PJSC and its competitors. For the Transportation industry, the median Interest Coverage is 5.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Arabia PJSC's current Interest Coverage is 8.37, which is 16% above median its own 10-year median of 7.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Arabia PJSC stock overvalued right now?
Based on GuruFocus' analysis, Air Arabia PJSC (DFM:AIRARABIA) is currently considered Significantly Overvalued. The stock's GF Value™ is د.إ3.83, compared to a current price of د.إ5.48 — trading 43.1% above its estimated fair value. The current Interest Coverage is 8.37, which is 16% above median its 10-year median of 7.23 and 45.1% above the Transportation industry median of 5.77. Air Arabia PJSC's overall GF Score™ is 80/100 with 8 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 Air Arabia PJSC (DFM:AIRARABIA), the current Interest Coverage is 8.37 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 Air Arabia PJSC (DFM:AIRARABIA) Overvalued in 2026?
Based on GuruFocus' analysis, Air Arabia PJSC stock appears to be overvalued.
The current stock price of د.إ5.48 is trading 43.1% above its estimated GF Value™ of د.إ3.83.
GuruFocus considers Air Arabia PJSC to be Significantly Overvalued.
Key valuation signals for DFM:AIRARABIA:
Interest Coverage: 8.37 (16% above median its 10-year median of 7.23)
GF Value™: د.إ3.83 vs. price of د.إ5.48 (43.1% above fair value)
Industry Position: 45.1% above the Transportation median (#203 of 840)
No single metric tells the full story. See the DFM:AIRARABIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Arabia PJSC is a group of airlines and companies offering travel and tourism services internationally. Its activities include international commercial air transportation, aircraft trading and rental, aircraft spare parts trading, passenger transport, cargo services, aviation training, aircraft repairs and maintenance, as well as travel and tourist agencies, hotels, hotel apartment rentals, representative offices, and document transfer services. The company operates through two segments: Airline, covering air transportation, aircraft rental, passenger transport, cargo services, aviation training, and aircraft repairs and maintenance, and Other, covering travel and tourist agencies, hotels, hotel apartment rentals, representative offices, and document transfer services.
80GF Score
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