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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. Al Eid Food Co's
Operating Income
for the
three
months ended in Sep. 2025 was KWD0.81 Mil. Al Eid Food Co's Interest Expense for the
three
months ended in Sep. 2025 was KWD-0.34 Mil.
Al Eid Food Co's interest coverage for the quarter that ended in Sep. 2025 was 2.40.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Al Eid Food Co's Interest Coverage or its related term are showing as below:
KUW:ALEID'
s Interest Coverage Range Over the Past 10 Years
Min: 3.67 Med: 4.22 Max: 5.79
Current: 4.68
KUW:ALEID's Interest Coverage is not ranked
in the Retail - Defensive industry.
Industry Median: 8.79
vs KUW:ALEID: 4.68
Al Eid Food Co (KUW:ALEID) 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 .
Al Eid Food Co Interest Coverage Related Terms
Al Eid Food Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Al Eid Food Co'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.
KUW:ALEID vs SYY, USFD, PFGC: Interest Coverage Comparison
For the Food Distribution subindustry, Al Eid Food Co'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.
Al Eid Food Co Interest Coverage vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Al Eid Food Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Al Eid Food Co'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.
Al Eid Food Co (KUW:ALEID) has a Interest Coverage of 2.40 as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Al Eid Food Co and its competitors. This is 43% below median its historical median of 4.22. Over the past decade, Al Eid Food Co's Interest Coverage has ranged from 3.67 to 5.79.
Is Al Eid Food Co's Interest Coverage too high?
Al Eid Food Co's current Interest Coverage of 2.40 is 43% below median its 10-year median of 4.22. Over the past 10 years, this metric has ranged from a low of 3.67 to a high of 5.79. The Retail - Defensive industry median Interest Coverage is 8.79. Al Eid Food Co's value of 2.40 is 72.7% below this industry median. Overall, Al Eid Food Co has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Al Eid Food Co's Interest Coverage compare to SYY and USFD?
Al Eid Food Co's Interest Coverage of 2.40 can be compared against companies in the Retail - Defensive industry. The industry median Interest Coverage is 8.79. Al Eid Food Co's value of 2.40 is 72.7% below this benchmark. Historically, Al Eid Food Co's own Interest Coverage has ranged from 3.67 to 5.79 over the past decade. While the company's 10-year median is 4.22 vs. the industry median of 8.79, Al Eid Food Co 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 Retail - Defensive company?
The median Interest Coverage among Retail - Defensive companies is 8.79, based on 253 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. Al Eid Food Co's current Interest Coverage of 2.40 is 72.7% 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 Al Eid Food Co and its competitors. For the Retail - Defensive industry, the median Interest Coverage is 8.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al Eid Food Co's current Interest Coverage is 2.40, which is 43% below median its own 10-year median of 4.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Eid Food Co stock overvalued right now?
Al Eid Food Co (KUW:ALEID) has a current Interest Coverage of 2.40. The stock's GF Value™ is KWD0.25, compared to a current price of KWD0.22 — trading 13.6% below its estimated fair value. The current Interest Coverage is 2.40, which is 43% below median its 10-year median of 4.22 and 72.7% below the Retail - Defensive industry median of 8.79. Al Eid Food Co's overall GF Score™ is 75/100 with 6 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 Al Eid Food Co (KUW:ALEID), the current Interest Coverage is 2.40 as of Sep. 2025. 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 Al Eid Food Co (KUW:ALEID) Overvalued in 2026?
Based on GuruFocus' analysis, Al Eid Food Co stock appears to be undervalued.
The current stock price of KWD0.22 is trading 13.6% below its estimated GF Value™ of KWD0.25.
Key valuation signals for KUW:ALEID:
Interest Coverage: 2.40 (43% below median its 10-year median of 4.22)
GF Value™: KWD0.25 vs. price of KWD0.22 (13.6% below fair value)
Industry Position: 72.7% below the Retail - Defensive median
No single metric tells the full story. See the KUW:ALEID stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al Eid Food Co is importing, distributes, packaging, and marketing food and consumer products. It specializes in food and beverage distribution in Kuwait. Its products include Alwaha, Seara, GoldAlex, Delicio, Rahma, and Sunlite. It also provides oils, pulses, spices, rice, seafood, nuts, and meat. Operating segments of the group are distributed over the State of Kuwait, and the Gulf co-operation council, and the majority of the revenue comes from the State of Kuwait.
75GF Score
Get the complete analysis for KUW:ALEID
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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