Saudi Steel Pipe Co (SAU:1320) Interest Coverage: 15.88 (As of Mar. 2026) — 152% Above Median

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SAU:1320 Saudi Steel Pipe Co SAU:1320
87 GF Score
Price ﷼47.90
GF Value ﷼51.56
Valuation Fairly Valued
! 4 Warning Signs
View Full Analysis

What is Saudi Steel Pipe Co Interest Coverage?

Saudi Steel Pipe Co SAU:1320 +2.53% 87 Interest Coverage is 15.88 as of Mar. 2026, which is 152% above its 10-year median of 6.31. GuruFocus rates SAU:1320 with a GF Score™ of 87/100 and a GF Value™ of ﷼51.56 (Fairly Valued). The stock has 4 warning signs investors should review. Among 456 Steel companies, Saudi Steel Pipe Co ranks better than 70.39% 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. Saudi Steel Pipe Co's Operating Income for the three months ended in Mar. 2026 was ﷼87 Mil. Saudi Steel Pipe Co's Interest Expense for the three months ended in Mar. 2026 was ﷼-5 Mil. Saudi Steel Pipe Co's interest coverage for the quarter that ended in Mar. 2026 was 15.88. The higher the ratio, the stronger the company's financial strength is.

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

SAU:1320' s Interest Coverage Range Over the Past 10 Years
Min: 0.34   Med: 6.31   Max: 12.73
Current: 12.73


SAU:1320's Interest Coverage is ranked better than
70.39% of 456 companies
in the Steel industry
Industry Median: 4.525 vs SAU:1320: 12.73

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


Saudi Steel Pipe Co  (SAU:1320) 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 .


Saudi Steel Pipe Co Interest Coverage Related Terms


Saudi Steel Pipe Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Saudi Steel Pipe 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.

Saudi Steel Pipe Co Interest Coverage Chart

Saudi Steel Pipe 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 0.00 6.04 6.58 9.28 9.83

Saudi Steel Pipe 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 7.05 8.03 4.50 0.00 15.88

SAU:1320 vs NUE, STLD, RS: Interest Coverage Comparison

For the Steel subindustry, Saudi Steel Pipe 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.


Saudi Steel Pipe Co Interest Coverage vs Steel Industry

For the Steel industry and Basic Materials sector, Saudi Steel Pipe Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Saudi Steel Pipe Co's Interest Coverage falls into.


SAU:1320
87GF Score
Saudi Steel Pipe Co SAU:1320
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Saudi Steel Pipe 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.

Saudi Steel Pipe 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, Saudi Steel Pipe Co's Interest Expense was ﷼-25 Mil. Its Operating Income was ﷼243 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼7 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*243.331/-24.765
=9.83

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

Here, for the three months ended in Mar. 2026, Saudi Steel Pipe Co's Interest Expense was ﷼-5 Mil. Its Operating Income was ﷼87 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼11 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*86.83/-5.467
=15.88

* 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 15.88 mean?
Saudi Steel Pipe Co (SAU:1320) has a Interest Coverage of 15.88 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Saudi Steel Pipe Co and its competitors. This is 152% above median its historical median of 6.31. Over the past decade, Saudi Steel Pipe Co's Interest Coverage has ranged from 0.34 to 12.73. According to the industry distribution chart, Saudi Steel Pipe Co ranks #135 out of 456 companies in the Steel industry, placing it in the top 29.6%.
Is Saudi Steel Pipe Co's Interest Coverage too high?
Saudi Steel Pipe Co's current Interest Coverage of 15.88 is 152% above median its 10-year median of 6.31. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 12.73. The Steel industry median Interest Coverage is 4.53. Saudi Steel Pipe Co's value of 15.88 is 250.9% above this industry median. Based on the distribution chart, Saudi Steel Pipe Co ranks #135 out of 456 companies in the Steel industry, which is above the industry midpoint. Overall, Saudi Steel Pipe Co has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Saudi Steel Pipe Co's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Saudi Steel Pipe Co ranks #135 out of 456 companies for Interest Coverage. This puts Saudi Steel Pipe Co in the upper half of its industry. The industry median Interest Coverage is 4.53. Saudi Steel Pipe Co's value of 15.88 is 250.9% above this benchmark. Historically, Saudi Steel Pipe Co's own Interest Coverage has ranged from 0.34 to 12.73 over the past decade. While the company's 10-year median is 6.31 vs. the industry median of 4.53, Saudi Steel Pipe Co has consistently been above 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 4.53, 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. Saudi Steel Pipe Co's current Interest Coverage of 15.88 is 250.9% above 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 Saudi Steel Pipe Co and its competitors. For the Steel industry, the median Interest Coverage is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Steel Pipe Co's current Interest Coverage is 15.88, which is 152% above median its own 10-year median of 6.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Steel Pipe Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Steel Pipe Co (SAU:1320) is currently considered Fairly Valued. The stock's GF Value™ is ﷼51.56, compared to a current price of ﷼47.90 — trading 7.1% below its estimated fair value. The current Interest Coverage is 15.88, which is 152% above median its 10-year median of 6.31 and 250.9% above the Steel industry median of 4.53. Saudi Steel Pipe Co's overall GF Score™ is 87/100 with 4 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 Saudi Steel Pipe Co (SAU:1320), the current Interest Coverage is 15.88 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 Saudi Steel Pipe Co (SAU:1320) Overvalued in 2026?

Based on GuruFocus' analysis, Saudi Steel Pipe Co stock appears to be undervalued. The current stock price of ﷼47.90 is trading 7.1% below its estimated GF Value™ of ﷼51.56. GuruFocus considers Saudi Steel Pipe Co to be Fairly Valued.

Key valuation signals for SAU:1320:

  • Interest Coverage: 15.88 (152% above median its 10-year median of 6.31)
  • GF Value™: ﷼51.56 vs. price of ﷼47.90 (7.1% below fair value)
  • GF Score™: 87/100 with 4 warning signs
  • Industry Position: 250.9% above the Steel median (#135 of 456)

No single metric tells the full story. See the SAU:1320 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Saudi Steel Pipe Co Business Description

Address P.O.Box 11680, Dammam, SAU, 31463
Saudi Steel Pipe Co is a Saudi Arabian company engaged in the manufacturing of steel pipes. The group operates in single segment, being the Steel pipes segment which provides galvanized and non-galvanized steel pipes, square and rectangular pipes used in petroleum, gas, water, and construction sectors. The company has a market presence in two segments namely Saudi Arabia and Other countries with the majority of the revenue generated from Saudi Arabia.
87GF Score

Get the complete analysis for SAU:1320

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

﷼47.90
Price
﷼51.56
GF Value