Bawan Co (SAU:1302) Interest Coverage: 3.30 (As of Mar. 2026) — 42% Below Median

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SAU:1302 Bawan Co SAU:1302
71 GF Score
Price ﷼38.48
GF Value ﷼58.63
Valuation Significantly Undervalued
! 9 Warning Signs
View Full Analysis

What is Bawan Co Interest Coverage?

Bawan Co SAU:1302 +1.10% 71 Interest Coverage is 3.30 as of Mar. 2026, which is 42% below its 10-year median of 5.71. GuruFocus rates SAU:1302 with a GF Score™ of 71/100 and a GF Value™ of ﷼58.63 (Significantly Undervalued). The stock has 9 warning signs investors should review. Among 1,359 Construction companies, Bawan Co ranks worse than 79.54% 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. Bawan Co's Operating Income for the three months ended in Mar. 2026 was ﷼78 Mil. Bawan Co's Interest Expense for the three months ended in Mar. 2026 was ﷼-23 Mil. Bawan Co's interest coverage for the quarter that ended in Mar. 2026 was 3.30. 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. Bawan Co interest coverage is 2.24, which is low.

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

SAU:1302' s Interest Coverage Range Over the Past 10 Years
Min: 0.28   Med: 5.71   Max: 13.84
Current: 2.24


SAU:1302's Interest Coverage is ranked worse than
79.54% of 1359 companies
in the Construction industry
Industry Median: 7.81 vs SAU:1302: 2.24

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


Bawan Co  (SAU:1302) 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 .


Bawan Co Interest Coverage Related Terms


Bawan Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Bawan 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.

Bawan Co Interest Coverage Chart

Bawan Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.84 8.90 5.35 4.26 2.15

Bawan Co 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.16 3.27 3.66 0.00 3.30

SAU:1302 vs TT, JCI, CARR: Interest Coverage Comparison

For the Building Products & Equipment subindustry, Bawan 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.


Bawan Co Interest Coverage vs Construction Industry

For the Construction industry and Industrials sector, Bawan Co's Interest Coverage distribution charts can be found below:

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


SAU:1302
71GF Score
Bawan Co SAU:1302
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Bawan 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.

Bawan 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, Bawan Co's Interest Expense was ﷼-109 Mil. Its Operating Income was ﷼236 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼526 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*235.511/-109.32
=2.15

Bawan Co's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Bawan Co's Interest Expense was ﷼-23 Mil. Its Operating Income was ﷼78 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼526 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*77.557/-23.493
=3.30

* 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 3.30 mean?
Bawan Co (SAU:1302) has a Interest Coverage of 3.30 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Bawan Co and its competitors. This is 42% below median its historical median of 5.71. Over the past decade, Bawan Co's Interest Coverage has ranged from 0.28 to 13.84. According to the industry distribution chart, Bawan Co ranks #1081 out of 1359 companies in the Construction industry, placing it in the top 79.5%.
Is Bawan Co's Interest Coverage too high?
Bawan Co's current Interest Coverage of 3.30 is 42% below median its 10-year median of 5.71. Over the past 10 years, this metric has ranged from a low of 0.28 to a high of 13.84. The Construction industry median Interest Coverage is 7.81. Bawan Co's value of 3.30 is 57.7% below this industry median. Based on the distribution chart, Bawan Co ranks #1081 out of 1359 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Bawan Co has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bawan Co's Interest Coverage compare to TT and JCI?
According to the Construction industry distribution chart, Bawan Co ranks #1081 out of 1359 companies for Interest Coverage. This places Bawan Co in the lower half of its industry. The industry median Interest Coverage is 7.81. Bawan Co's value of 3.30 is 57.7% below this benchmark. Historically, Bawan Co's own Interest Coverage has ranged from 0.28 to 13.84 over the past decade. While the company's 10-year median is 5.71 vs. the industry median of 7.81, Bawan 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 Construction company?
The median Interest Coverage among Construction companies is 7.81, based on 1,359 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. Bawan Co's current Interest Coverage of 3.30 is 57.7% 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 Bawan Co and its competitors. For the Construction industry, the median Interest Coverage is 7.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bawan Co's current Interest Coverage is 3.30, which is 42% below median its own 10-year median of 5.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bawan Co stock overvalued right now?
Based on GuruFocus' analysis, Bawan Co (SAU:1302) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼58.63, compared to a current price of ﷼38.48 — trading 34.4% below its estimated fair value. The current Interest Coverage is 3.30, which is 42% below median its 10-year median of 5.71 and 57.7% below the Construction industry median of 7.81. Bawan Co's overall GF Score™ is 71/100 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 Bawan Co (SAU:1302), the current Interest Coverage is 3.30 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 Bawan Co (SAU:1302) Overvalued in 2026?

Based on GuruFocus' analysis, Bawan Co stock appears to be undervalued. The current stock price of ﷼38.48 is trading 34.4% below its estimated GF Value™ of ﷼58.63. GuruFocus considers Bawan Co to be Significantly Undervalued.

Key valuation signals for SAU:1302:

  • Interest Coverage: 3.30 (42% below median its 10-year median of 5.71)
  • GF Value™: ﷼58.63 vs. price of ﷼38.48 (34.4% below fair value)
  • GF Score™: 71/100 with 9 warning signs
  • Industry Position: 57.7% below the Construction median (#1081 of 1359)

No single metric tells the full story. See the SAU:1302 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Bawan Co Business Description

Address King Fahad Road, P.O. Box 25533, Riyadh, SAU
Bawan Co is engaged in the manufacturing of metal and steelworks, wooden pallets, plywood panels, boards, and all acts of carpentry and decorations, electrical transformers, packaged and unit substations.. The company's operating segments include Metal and Wood, Plastic, Electrical, Oil and gas equipment, and Other. It derives the majority of its revenues from Metal and Wood, followed by Oil and Gas equipment. Geographically, the firm generates the majority of its revenue from the Kingdom of Saudi Arabia, and a small portion of its revenue from the United Arab Emirates.
71GF Score

Get the complete analysis for SAU:1302

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

﷼38.48
Price
﷼58.63
GF Value