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Al-Arabiya Real Estate Co KSCKUW:ARABREC -1.10%4 Interest Coverage is 0.52 as of Mar. 2026, which is 44% above its 10-year median of 0.36. GuruFocus rates KUW:ARABREC with a GF Score™ of 4/100 and a GF Value™ of KWD0.06 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,305 Real Estate companies, Al-Arabiya Real Estate Co KSC ranks worse than 93.95% 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. Al-Arabiya Real Estate Co KSC's
Operating Income
for the
three
months ended in Mar. 2026 was KWD0.49 Mil. Al-Arabiya Real Estate Co KSC's Interest Expense for the
three
months ended in Mar. 2026 was KWD-0.94 Mil.
Al-Arabiya Real Estate Co KSC's interest coverage for the quarter that ended in Mar. 2026 was 0.52.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Al-Arabiya Real Estate Co KSCs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Al-Arabiya Real Estate Co KSC's Interest Coverage or its related term are showing as below:
KUW:ARABREC'
s Interest Coverage Range Over the Past 10 Years
Min: 0.15 Med: 0.36 Max: 0.63
Current: 0.48
KUW:ARABREC's Interest Coverage is ranked worse than 93.95% of 1305
companies
in the Real Estate industry
Industry Median: 4.21
vs KUW:ARABREC: 0.48
Al-Arabiya Real Estate Co KSC (KUW:ARABREC) 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-Arabiya Real Estate Co KSC Interest Coverage Related Terms
Al-Arabiya Real Estate Co KSC Interest Coverage Historical Data
* 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.
Al-Arabiya Real Estate Co KSC Interest Coverage Chart
KUW:ARABREC vs CBRE, BEKE, JLL: Interest Coverage Comparison
For the Real Estate Services subindustry, Al-Arabiya Real Estate 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.
Al-Arabiya Real Estate Co KSC Interest Coverage vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Al-Arabiya Real Estate Co KSC's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Al-Arabiya Real Estate Co KSC's Interest Coverage falls into.
Al-Arabiya Real Estate 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:
* 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-Arabiya Real Estate Co KSC (KUW:ARABREC) has a Interest Coverage of 0.52 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Al-Arabiya Real Estate Co KSC and its competitors. This is 44% above median its historical median of 0.36. Over the past decade, Al-Arabiya Real Estate Co KSC's Interest Coverage has ranged from 0.15 to 0.63. According to the industry distribution chart, Al-Arabiya Real Estate Co KSC ranks #1226 out of 1305 companies in the Real Estate industry, placing it in the top 93.9%.
Is Al-Arabiya Real Estate Co KSC's Interest Coverage too high?
Al-Arabiya Real Estate Co KSC's current Interest Coverage of 0.52 is 44% above median its 10-year median of 0.36. Over the past 10 years, this metric has ranged from a low of 0.15 to a high of 0.63. The Real Estate industry median Interest Coverage is 4.21. Al-Arabiya Real Estate Co KSC's value of 0.52 is 87.6% below this industry median. Based on the distribution chart, Al-Arabiya Real Estate Co KSC ranks #1226 out of 1305 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Al-Arabiya Real Estate Co KSC has a GF Score™ of 4/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Al-Arabiya Real Estate Co KSC's Interest Coverage compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Al-Arabiya Real Estate Co KSC ranks #1226 out of 1305 companies for Interest Coverage. This places Al-Arabiya Real Estate Co KSC in the lower half of its industry. The industry median Interest Coverage is 4.21. Al-Arabiya Real Estate Co KSC's value of 0.52 is 87.6% below this benchmark. Historically, Al-Arabiya Real Estate Co KSC's own Interest Coverage has ranged from 0.15 to 0.63 over the past decade. While the company's 10-year median is 0.36 vs. the industry median of 4.21, Al-Arabiya Real Estate 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 Real Estate company?
The median Interest Coverage among Real Estate companies is 4.21, based on 1,305 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-Arabiya Real Estate Co KSC's current Interest Coverage of 0.52 is 87.6% 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-Arabiya Real Estate Co KSC and its competitors. For the Real Estate industry, the median Interest Coverage is 4.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al-Arabiya Real Estate Co KSC's current Interest Coverage is 0.52, which is 44% above median its own 10-year median of 0.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al-Arabiya Real Estate Co KSC stock overvalued right now?
Based on GuruFocus' analysis, Al-Arabiya Real Estate Co KSC (KUW:ARABREC) is currently considered Significantly Overvalued. The stock's GF Value™ is KWD0.06, compared to a current price of KWD0.18 — trading 198.3% above its estimated fair value. The current Interest Coverage is 0.52, which is 44% above median its 10-year median of 0.36 and 87.6% below the Real Estate industry median of 4.21. Al-Arabiya Real Estate Co KSC's overall GF Score™ is 4/100 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-Arabiya Real Estate Co KSC (KUW:ARABREC), the current Interest Coverage is 0.52 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 Al-Arabiya Real Estate Co KSC (KUW:ARABREC) Overvalued in 2026?
Based on GuruFocus' analysis, Al-Arabiya Real Estate Co KSC stock appears to be overvalued.
The current stock price of KWD0.18 is trading 198.3% above its estimated GF Value™ of KWD0.06.
GuruFocus considers Al-Arabiya Real Estate Co KSC to be Significantly Overvalued.
Key valuation signals for KUW:ARABREC:
Interest Coverage: 0.52 (44% above median its 10-year median of 0.36)
GF Value™: KWD0.06 vs. price of KWD0.18 (198.3% above fair value)
Industry Position: 87.6% below the Real Estate median (#1226 of 1305)
No single metric tells the full story. See the KUW:ARABREC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al-Arabiya Real Estate Co KSC Business Description
Al-Arabiya Real Estate Co KSC is a Kuwait based company involved in the construction, contracting, developing and managing the activities of residential buildings, hotels, and commercial centres within the private and public sector. It operates in three segments. Real estate segment involves activities related to real estate investment properties. Hotels segment, which is the key revenue generator, involves establishment, acquiring and managing hotels. Investment segment involves investing in shares and share capital of the companies. Geographically, it generates revenue from Kuwait being the highest revenue driver, United Arab Emirates, and Egypt.
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