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 Yamamah Steel Industries Co's
Operating Income
for the
six
months ended in Mar. 2026 was ﷼122 Mil. Al Yamamah Steel Industries Co's Interest Expense for the
six
months ended in Mar. 2026 was ﷼-33 Mil.
Al Yamamah Steel Industries Co's interest coverage for the quarter that ended in Mar. 2026 was 3.70.
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 Yamamah Steel Industries Co interest coverage is 3.14, which is low.
The historical rank and industry rank for Al Yamamah Steel Industries Co's Interest Coverage or its related term are showing as below:
SAU:1304'
s Interest Coverage Range Over the Past 10 Years
Min: 0.71 Med: 5.12 Max: 21.43
Current: 3.14
SAU:1304's Interest Coverage is ranked worse than 60.96% of 456
companies
in the Steel industry
Industry Median: 4.445
vs SAU:1304: 3.14
Al Yamamah Steel Industries Co (SAU:1304) 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 Yamamah Steel Industries Co Interest Coverage Related Terms
Al Yamamah Steel Industries Co 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 Yamamah Steel Industries Co Interest Coverage Chart
SAU:1304 vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Al Yamamah Steel Industries 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 Yamamah Steel Industries Co Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Al Yamamah Steel Industries Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Al Yamamah Steel Industries Co's Interest Coverage falls into.
Al Yamamah Steel Industries 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:
* 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 Yamamah Steel Industries Co (SAU:1304) has a Interest Coverage of 3.70 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Al Yamamah Steel Industries Co and its competitors. This is 28% below median its historical median of 5.12. Over the past decade, Al Yamamah Steel Industries Co's Interest Coverage has ranged from 0.71 to 21.43. According to the industry distribution chart, Al Yamamah Steel Industries Co ranks #278 out of 456 companies in the Steel industry, placing it in the top 61%.
Is Al Yamamah Steel Industries Co's Interest Coverage too high?
Al Yamamah Steel Industries Co's current Interest Coverage of 3.70 is 28% below median its 10-year median of 5.12. Over the past 10 years, this metric has ranged from a low of 0.71 to a high of 21.43. The Steel industry median Interest Coverage is 4.45. Al Yamamah Steel Industries Co's value of 3.70 is 16.8% below this industry median. Based on the distribution chart, Al Yamamah Steel Industries Co ranks #278 out of 456 companies in the Steel industry, which is below the industry midpoint. Overall, Al Yamamah Steel Industries Co has a GF Score™ of 55/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Al Yamamah Steel Industries Co's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Al Yamamah Steel Industries Co ranks #278 out of 456 companies for Interest Coverage. This places Al Yamamah Steel Industries Co in the lower half of its industry. The industry median Interest Coverage is 4.45. Al Yamamah Steel Industries Co's value of 3.70 is 16.8% below this benchmark. Historically, Al Yamamah Steel Industries Co's own Interest Coverage has ranged from 0.71 to 21.43 over the past decade. While the company's 10-year median is 5.12 vs. the industry median of 4.45, Al Yamamah Steel Industries 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 Steel company?
The median Interest Coverage among Steel companies is 4.45, based on 456 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 Yamamah Steel Industries Co's current Interest Coverage of 3.70 is 16.8% 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 Yamamah Steel Industries Co and its competitors. For the Steel industry, the median Interest Coverage is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al Yamamah Steel Industries Co's current Interest Coverage is 3.70, which is 28% below median its own 10-year median of 5.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Yamamah Steel Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Al Yamamah Steel Industries Co (SAU:1304) is currently considered Modestly Overvalued. The stock's GF Value™ is ﷼36.24, compared to a current price of ﷼42.00 — trading 15.9% above its estimated fair value. The current Interest Coverage is 3.70, which is 28% below median its 10-year median of 5.12 and 16.8% below the Steel industry median of 4.45. Al Yamamah Steel Industries Co's overall GF Score™ is 55/100 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 Yamamah Steel Industries Co (SAU:1304), the current Interest Coverage is 3.70 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 Yamamah Steel Industries Co (SAU:1304) Overvalued in 2026?
Based on GuruFocus' analysis, Al Yamamah Steel Industries Co stock appears to be overvalued.
The current stock price of ﷼42.00 is trading 15.9% above its estimated GF Value™ of ﷼36.24.
GuruFocus considers Al Yamamah Steel Industries Co to be Modestly Overvalued.
Key valuation signals for SAU:1304:
Interest Coverage: 3.70 (28% below median its 10-year median of 5.12)
GF Value™: ﷼36.24 vs. price of ﷼42.00 (15.9% above fair value)
Industry Position: 16.8% below the Steel median (#278 of 456)
No single metric tells the full story. See the SAU:1304 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al Yamamah Steel Industries Co Business Description
Al Yamamah Steel Industries Co is a manufacturer of tubes, pipes and hollow shapes from iron, metal structures and their parts for bridges and towers, poles and their parts, including poles, lighting cabins, traffic lights, etc. and installation of prefabricated steel structures for industrial facilities. The company produces and sells steel welded tubes, steel sheets, steel reinforcement bars, and three-dimension space structures. The company's operating segments include Construction, Electricity and Renewable Energy. It generates maximum revenue from the Construction segment.The company has production facilities at Jeddah, Dammam and Yanbu.
55GF Score
Get the complete analysis for SAU:1304
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SAU:1304 has been successfully added to your 
