Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Interest Coverage: 7.95 (As of Mar. 2026) — 34% Below Median

What is Ali Alghanim Sons Automotive Co KSC Interest Coverage?

Ali Alghanim Sons Automotive Co KSC KUW:ALG -0.57% 26 Interest Coverage is 7.95 as of Mar. 2026, which is 34% below its 10-year median of 11.99. GuruFocus rates KUW:ALG with a GF Score™ of 26/100 and a GF Value™ of KWD0.95 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,067 Vehicles & Parts companies, Ali Alghanim Sons Automotive Co KSC ranks better than 51.83% 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. Ali Alghanim Sons Automotive Co KSC's Operating Income for the three months ended in Mar. 2026 was KWD5.8 Mil. Ali Alghanim Sons Automotive Co KSC's Interest Expense for the three months ended in Mar. 2026 was KWD-0.7 Mil. Ali Alghanim Sons Automotive Co KSC's interest coverage for the quarter that ended in Mar. 2026 was 7.95. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Ali Alghanim Sons Automotive Co KSC's Interest Coverage or its related term are showing as below:

KUW:ALG' s Interest Coverage Range Over the Past 10 Years
Min: 8.77 Med: 11.99 Max: 18.13
Current: 8.77

KUW:ALG's Interest Coverage is ranked better than
51.83% of 1067 companies
in the Vehicles & Parts industry
Industry Median: 8.31 vs KUW:ALG: 8.77

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

Ali Alghanim Sons Automotive Co KSC (KUW:ALG) 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 .

Ali Alghanim Sons Automotive Co KSC Interest Coverage Related Terms

Ali Alghanim Sons Automotive Co KSC Interest Coverage Historical Data

* Premium members only.

The historical data trend for Ali Alghanim Sons Automotive Co KSC'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.

Ali Alghanim Sons Automotive Co KSC Interest Coverage Chart

Ali Alghanim Sons Automotive Co KSC Annual Data

Trend

Dec21

Dec22

Dec23

Dec24

Dec25

Interest Coverage

11.99

18.13

16.92

11.40

9.48

Ali Alghanim Sons Automotive Co KSC Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Interest Coverage	Get a 7-Day Free Trial															11.38	9.25	8.62	9.04	7.95

KUW:ALG vs CVNA, PAG, ALTB: Interest Coverage Comparison

For the Auto & Truck Dealerships subindustry, Ali Alghanim Sons Automotive Co KSC'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.

Ali Alghanim Sons Automotive Co KSC Interest Coverage vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Ali Alghanim Sons Automotive Co KSC's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ali Alghanim Sons Automotive Co KSC's Interest Coverage falls into.

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26GF Score

Ali Alghanim Sons Automotive Co KSC KUW:ALG

Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.

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Ali Alghanim Sons Automotive Co KSC 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.

Ali Alghanim Sons Automotive Co KSC'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, Ali Alghanim Sons Automotive Co KSC's Interest Expense was KWD-4.0 Mil. Its Operating Income was KWD38.3 Mil. And its Long-Term Debt & Capital Lease Obligation was KWD34.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2025 )	/	Interest Expense (A: Dec. 2025 )
	=	-1	*	38.273	/	-4.036
	=	9.48

Ali Alghanim Sons Automotive Co KSC's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Ali Alghanim Sons Automotive Co KSC's Interest Expense was KWD-0.7 Mil. Its Operating Income was KWD5.8 Mil. And its Long-Term Debt & Capital Lease Obligation was KWD47.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2026 )	/	Interest Expense (Q: Mar. 2026 )
	=	-1	*	5.795	/	-0.729
	=	7.95

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 7.95 mean?

Ali Alghanim Sons Automotive Co KSC (KUW:ALG) has a Interest Coverage of 7.95 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ali Alghanim Sons Automotive Co KSC and its competitors. This is 34% below median its historical median of 11.99. Over the past decade, Ali Alghanim Sons Automotive Co KSC's Interest Coverage has ranged from 8.77 to 18.13. According to the industry distribution chart, Ali Alghanim Sons Automotive Co KSC ranks #514 out of 1067 companies in the Vehicles & Parts industry, placing it in the top 48.2%.

Is Ali Alghanim Sons Automotive Co KSC's Interest Coverage too high?

Ali Alghanim Sons Automotive Co KSC's current Interest Coverage of 7.95 is 34% below median its 10-year median of 11.99. Over the past 10 years, this metric has ranged from a low of 8.77 to a high of 18.13. The Vehicles & Parts industry median Interest Coverage is 8.31. Ali Alghanim Sons Automotive Co KSC's value of 7.95 is 4.3% below this industry median. Based on the distribution chart, Ali Alghanim Sons Automotive Co KSC ranks #514 out of 1067 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Ali Alghanim Sons Automotive Co KSC has a GF Score™ of 26/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.

How does Ali Alghanim Sons Automotive Co KSC's Interest Coverage compare to CVNA and PAG?

According to the Vehicles & Parts industry distribution chart, Ali Alghanim Sons Automotive Co KSC ranks #514 out of 1067 companies for Interest Coverage. This puts Ali Alghanim Sons Automotive Co KSC in the upper half of its industry. The industry median Interest Coverage is 8.31. Ali Alghanim Sons Automotive Co KSC's value of 7.95 is 4.3% below this benchmark. Historically, Ali Alghanim Sons Automotive Co KSC's own Interest Coverage has ranged from 8.77 to 18.13 over the past decade. While the company's 10-year median is 11.99 vs. the industry median of 8.31, Ali Alghanim Sons Automotive Co KSC 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 Vehicles & Parts company?

The median Interest Coverage among Vehicles & Parts companies is 8.31, based on 1,067 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. Ali Alghanim Sons Automotive Co KSC's current Interest Coverage of 7.95 is 4.3% 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 Ali Alghanim Sons Automotive Co KSC and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ali Alghanim Sons Automotive Co KSC's current Interest Coverage is 7.95, which is 34% below median its own 10-year median of 11.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Ali Alghanim Sons Automotive Co KSC stock overvalued right now?

Based on GuruFocus' analysis, Ali Alghanim Sons Automotive Co KSC (KUW:ALG) is currently considered Fairly Valued. The stock's GF Value™ is KWD0.95, compared to a current price of KWD0.88 — trading 7.6% below its estimated fair value. The current Interest Coverage is 7.95, which is 34% below median its 10-year median of 11.99 and 4.3% below the Vehicles & Parts industry median of 8.31. Ali Alghanim Sons Automotive Co KSC's overall GF Score™ is 26/100 with 2 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 Ali Alghanim Sons Automotive Co KSC (KUW:ALG), the current Interest Coverage is 7.95 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 Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Overvalued in 2026?

Based on GuruFocus' analysis, Ali Alghanim Sons Automotive Co KSC stock appears to be undervalued. The current stock price of KWD0.88 is trading 7.6% below its estimated GF Value™ of KWD0.95. GuruFocus considers Ali Alghanim Sons Automotive Co KSC to be Fairly Valued.

Key valuation signals for KUW:ALG:

Interest Coverage: 7.95 (34% below median its 10-year median of 11.99)
GF Value™: KWD0.95 vs. price of KWD0.88 (7.6% below fair value)
GF Score™: 26/100 with 2 warning signs
Industry Position: 4.3% below the Vehicles & Parts median (#514 of 1067)

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

Ali Alghanim Sons Automotive Co KSC Business Description

Industry Consumer Cyclical Vehicles & Parts

Comparable Companies CVNA PAG XBRU:DIE ALTB TPE:2207 KMX LAD AN RUSHA TSE:4732 VVV OPLN ASX:APE ABG LSE:INCH GPI CARG TSX:BYD SAH DRVN

Address Airport Road 55, P.O. Box 21540, Safat, Opposite Kaifan Telecommunication, Shuwaikh, KWT, 13076

Website https://alg.com.kw

Ali Alghanim Sons Automotive Co KSC is engaged in the automotive business, with activities including the sale and purchase of cars and spare parts, import and export of light and heavy vehicles, car rental services, maintenance of vehicles, trading of auto spare parts, and equipment rental and maintenance. The Group operates across three geographical segments, namely the State of Kuwait, Iraq, and the United Arab Emirates, with the State of Kuwait contributing the majority of its revenue.

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

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