Saudi Basic IndustriesSAU:2010 -1.06%72 Interest Coverage is 2.05 as of Mar. 2026, which is 79% below its 10-year median of 9.61. GuruFocus rates SAU:2010 with a GF Score™ of 72/100 and a GF Value™ of ﷼55.71 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,234 Chemicals companies, Saudi Basic Industries ranks worse than 79.25% 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 Basic Industries's
Operating Income
for the
three
months ended in Mar. 2026 was ﷼1,387 Mil. Saudi Basic Industries's Interest Expense for the
three
months ended in Mar. 2026 was ﷼-678 Mil.
Saudi Basic Industries's interest coverage for the quarter that ended in Mar. 2026 was 2.05.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Saudi Basic Industries's Interest Coverage or its related term are showing as below:
SAU:2010'
s Interest Coverage Range Over the Past 10 Years
Min: 1.45 Med: 9.61 Max: 17
Current: 2.81
SAU:2010's Interest Coverage is ranked worse than 79.25% of 1234
companies
in the Chemicals industry
Industry Median: 10.18
vs SAU:2010: 2.81
Saudi Basic Industries (SAU:2010) 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 Basic Industries Interest Coverage Related Terms
Saudi Basic Industries Interest Coverage Historical Data
* Premium members only.
The historical data trend for Saudi Basic Industries'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.
For the Chemicals subindustry, Saudi Basic Industries'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 Basic Industries Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Saudi Basic Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Saudi Basic Industries's Interest Coverage falls into.
Saudi Basic Industries 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.
Saudi Basic Industries (SAU:2010) has a Interest Coverage of 2.05 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Saudi Basic Industries and its competitors. This is 79% below median its historical median of 9.61. Over the past decade, Saudi Basic Industries' Interest Coverage has ranged from 1.45 to 17.00. According to the industry distribution chart, Saudi Basic Industries ranks #978 out of 1234 companies in the Chemicals industry, placing it in the top 79.3%.
Is Saudi Basic Industries' Interest Coverage too high?
Saudi Basic Industries' current Interest Coverage of 2.05 is 79% below median its 10-year median of 9.61. Over the past 10 years, this metric has ranged from a low of 1.45 to a high of 17.00. The Chemicals industry median Interest Coverage is 10.18. Saudi Basic Industries' value of 2.05 is 79.9% below this industry median. Based on the distribution chart, Saudi Basic Industries ranks #978 out of 1234 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Saudi Basic Industries has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Saudi Basic Industries' Interest Coverage compare to DOW?
According to the Chemicals industry distribution chart, Saudi Basic Industries ranks #978 out of 1234 companies for Interest Coverage. This places Saudi Basic Industries in the lower half of its industry. The industry median Interest Coverage is 10.18. Saudi Basic Industries' value of 2.05 is 79.9% below this benchmark. Historically, Saudi Basic Industries' own Interest Coverage has ranged from 1.45 to 17.00 over the past decade. While the company's 10-year median is 9.61 vs. the industry median of 10.18, Saudi Basic Industries 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.18, based on 1,234 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 Basic Industries's current Interest Coverage of 2.05 is 79.9% 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 Saudi Basic Industries and its competitors. For the Chemicals industry, the median Interest Coverage is 10.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Basic Industries's current Interest Coverage is 2.05, which is 79% below median its own 10-year median of 9.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Basic Industries stock overvalued right now?
Based on GuruFocus' analysis, Saudi Basic Industries (SAU:2010) is currently considered Fairly Valued. The stock's GF Value™ is ﷼55.71, compared to a current price of ﷼51.55 — trading 7.5% below its estimated fair value. The current Interest Coverage is 2.05, which is 79% below median its 10-year median of 9.61 and 79.9% below the Chemicals industry median of 10.18. Saudi Basic Industries' overall GF Score™ is 72/100 with 8 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 Basic Industries (SAU:2010), the current Interest Coverage is 2.05 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 Basic Industries (SAU:2010) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Basic Industries stock appears to be undervalued.
The current stock price of ﷼51.55 is trading 7.5% below its estimated GF Value™ of ﷼55.71.
GuruFocus considers Saudi Basic Industries to be Fairly Valued.
Key valuation signals for SAU:2010:
Interest Coverage: 2.05 (79% below median its 10-year median of 9.61)
GF Value™: ﷼55.71 vs. price of ﷼51.55 (7.5% below fair value)
Industry Position: 79.9% below the Chemicals median (#978 of 1234)
No single metric tells the full story. See the SAU:2010 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Basic Industries Corp is a chemicals manufacturer in Saudi Arabia. The primary business segments of the company are Petrochemicals and Agri-nutrients. In Petrochemicals segment products included polymers and chemicals are produced from hydrocarbon feedstock including methane, ethane, and propane, it also includes the production of a range of fertilisers; including urea, ammonia, phosphate, as well as compound fertilisers. The Hadeed is concerned with production of steel products, long products and flat products. The company derives maximum revenue from Petrochemicals segment. Geographically, it generates maximum revenue from Rest of Asia followed by China, KSA, America and Europe.
72GF Score
Get the complete analysis for SAU:2010
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