Barka Desalination Co (MUS:BRDE) Interest Coverage: 1.27 (As of Dec. 2025) — Near Median

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MUS:BRDE Barka Desalination Co MUS:BRDE
12 GF Score
Price ر.ع0.17
GF Value ر.ع0.13
Valuation Modestly Overvalued
! 9 Warning Signs
View Full Analysis

What is Barka Desalination Co Interest Coverage?

Barka Desalination Co MUS:BRDE 12 Interest Coverage is 1.27 as of Dec. 2025, which is at its 10-year median of 1.27. GuruFocus rates MUS:BRDE with a GF Score™ of 12/100 and a GF Value™ of ر.ع0.13 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 447 Utilities - Regulated companies, Barka Desalination Co ranks worse than 91.72% 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. Barka Desalination Co's Operating Income for the six months ended in Dec. 2025 was ر.ع5.38 Mil. Barka Desalination Co's Interest Expense for the six months ended in Dec. 2025 was ر.ع-4.23 Mil. Barka Desalination Co's interest coverage for the quarter that ended in Dec. 2025 was 1.27. 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. Barka Desalination Co interest coverage is 1.27, which is low.

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

MUS:BRDE' s Interest Coverage Range Over the Past 10 Years
Min: 1.02   Med: 1.27   Max: 1.64
Current: 1.27


MUS:BRDE's Interest Coverage is ranked worse than
91.72% of 447 companies
in the Utilities - Regulated industry
Industry Median: 3.92 vs MUS:BRDE: 1.27

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


Barka Desalination Co  (MUS:BRDE) 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 .


Barka Desalination Co Interest Coverage Related Terms


Barka Desalination Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Barka Desalination 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.

Barka Desalination Co Interest Coverage Chart

Barka Desalination Co Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
1.37 1.64 1.02 1.05 1.27

Barka Desalination Co Semi-Annual Data
Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage 1.37 1.64 1.02 1.05 1.27

MUS:BRDE vs AWK, WTRG, AWR: Interest Coverage Comparison

For the Utilities - Regulated Water subindustry, Barka Desalination 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.


Barka Desalination Co Interest Coverage vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Barka Desalination Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Barka Desalination Co's Interest Coverage falls into.


MUS:BRDE
12GF Score
Barka Desalination Co MUS:BRDE
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Barka Desalination Co 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.

Barka Desalination Co'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, Barka Desalination Co's Interest Expense was ر.ع-4.23 Mil. Its Operating Income was ر.ع5.38 Mil. And its Long-Term Debt & Capital Lease Obligation was ر.ع65.09 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*5.375/-4.232
=1.27

Barka Desalination Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Barka Desalination Co's Interest Expense was ر.ع-4.23 Mil. Its Operating Income was ر.ع5.38 Mil. And its Long-Term Debt & Capital Lease Obligation was ر.ع65.09 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*5.375/-4.232
=1.27

* 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 1.27 mean?
Barka Desalination Co (MUS:BRDE) has a Interest Coverage of 1.27 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Barka Desalination Co and its competitors. This is near median its historical median of 1.27. Over the past decade, Barka Desalination Co's Interest Coverage has ranged from 1.02 to 1.64. According to the industry distribution chart, Barka Desalination Co ranks #410 out of 447 companies in the Utilities - Regulated industry, placing it in the top 91.7%.
Is Barka Desalination Co's Interest Coverage too high?
Barka Desalination Co's current Interest Coverage of 1.27 is near median its 10-year median of 1.27. Over the past 10 years, this metric has ranged from a low of 1.02 to a high of 1.64. The Utilities - Regulated industry median Interest Coverage is 3.92. Barka Desalination Co's value of 1.27 is 67.6% below this industry median. Based on the distribution chart, Barka Desalination Co ranks #410 out of 447 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, Barka Desalination Co has a GF Score™ of 12/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Barka Desalination Co's Interest Coverage compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Barka Desalination Co ranks #410 out of 447 companies for Interest Coverage. This places Barka Desalination Co in the lower half of its industry. The industry median Interest Coverage is 3.92. Barka Desalination Co's value of 1.27 is 67.6% below this benchmark. Historically, Barka Desalination Co's own Interest Coverage has ranged from 1.02 to 1.64 over the past decade. While the company's 10-year median is 1.27 vs. the industry median of 3.92, Barka Desalination 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 an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.92, based on 447 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. Barka Desalination Co's current Interest Coverage of 1.27 is 67.6% 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 Barka Desalination Co and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Barka Desalination Co's current Interest Coverage is 1.27, which is near median its own 10-year median of 1.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Barka Desalination Co stock overvalued right now?
Based on GuruFocus' analysis, Barka Desalination Co (MUS:BRDE) is currently considered Modestly Overvalued. The stock's GF Value™ is ر.ع0.13, compared to a current price of ر.ع0.17 — trading 30% above its estimated fair value. The current Interest Coverage is 1.27, which is near median its 10-year median of 1.27 and 67.6% below the Utilities - Regulated industry median of 3.92. Barka Desalination Co's overall GF Score™ is 12/100 with 9 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 Barka Desalination Co (MUS:BRDE), the current Interest Coverage is 1.27 as of Dec. 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 Barka Desalination Co (MUS:BRDE) Overvalued in 2026?

Based on GuruFocus' analysis, Barka Desalination Co stock appears to be overvalued. The current stock price of ر.ع0.17 is trading 30% above its estimated GF Value™ of ر.ع0.13. GuruFocus considers Barka Desalination Co to be Modestly Overvalued.

Key valuation signals for MUS:BRDE:

  • Interest Coverage: 1.27 (near median its 10-year median of 1.27)
  • GF Value™: ر.ع0.13 vs. price of ر.ع0.17 (30% above fair value)
  • GF Score™: 12/100 with 9 warning signs
  • Industry Position: 67.6% below the Utilities - Regulated median (#410 of 447)

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


Barka Desalination Co Business Description

Address Bait Mahmyat Al Qurum, Office 4, Ground Floor, Shatti Al Qurum, Muscat, OMN
Barka Desalination Co core business activity is to develop, own and operate the Barka Independent water project, a Sea Water Reverse Osmosis (SWRO) plant with a production located in Barka, South Batinah Governorate, Sultanate of Oman. objectives of the Company are to develop, finance, design, construct, own, operate, maintain a desalination facility. The Company has one operating segment.
12GF Score

Get the complete analysis for MUS:BRDE

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

ر.ع0.17
Price
ر.ع0.13
GF Value