ACWA Power CoSAU:2082 -0.67%86 Interest Coverage is 1.45 as of Mar. 2026, which is 15% below its 10-year median of 1.71. GuruFocus rates SAU:2082 with a GF Score™ of 86/100 and a GF Value™ of ﷼295.70 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 450 Utilities - Regulated companies, ACWA Power Co ranks worse than 92.89% 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. ACWA Power Co's
Operating Income
for the
three
months ended in Mar. 2026 was ﷼567 Mil. ACWA Power Co's Interest Expense for the
three
months ended in Mar. 2026 was ﷼-392 Mil.
ACWA Power Co's interest coverage for the quarter that ended in Mar. 2026 was 1.45.
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. ACWA Power Co interest coverage is 1.19, which is low.
The historical rank and industry rank for ACWA Power Co's Interest Coverage or its related term are showing as below:
SAU:2082'
s Interest Coverage Range Over the Past 10 Years
Min: 1.19 Med: 1.71 Max: 1.76
Current: 1.19
SAU:2082's Interest Coverage is ranked worse than 92.89% of 450
companies
in the Utilities - Regulated industry
Industry Median: 3.8
vs SAU:2082: 1.19
ACWA Power Co (SAU:2082) 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 .
ACWA Power Co Interest Coverage Related Terms
ACWA Power Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for ACWA Power 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.
SAU:2082 vs SRE, AES: Interest Coverage Comparison
For the Utilities - Diversified subindustry, ACWA Power 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.
ACWA Power Co Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, ACWA Power Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where ACWA Power Co's Interest Coverage falls into.
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.
ACWA Power Co (SAU:2082) has a Interest Coverage of 1.45 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ACWA Power Co and its competitors. This is 15% below median its historical median of 1.71. Over the past decade, ACWA Power Co's Interest Coverage has ranged from 1.19 to 1.76. According to the industry distribution chart, ACWA Power Co ranks #418 out of 450 companies in the Utilities - Regulated industry, placing it in the top 92.9%.
Is ACWA Power Co's Interest Coverage too high?
ACWA Power Co's current Interest Coverage of 1.45 is 15% below median its 10-year median of 1.71. Over the past 10 years, this metric has ranged from a low of 1.19 to a high of 1.76. The Utilities - Regulated industry median Interest Coverage is 3.80. ACWA Power Co's value of 1.45 is 61.8% below this industry median. Based on the distribution chart, ACWA Power Co ranks #418 out of 450 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, ACWA Power Co has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ACWA Power Co's Interest Coverage compare to SRE and AES?
According to the Utilities - Regulated industry distribution chart, ACWA Power Co ranks #418 out of 450 companies for Interest Coverage. This places ACWA Power Co in the lower half of its industry. The industry median Interest Coverage is 3.80. ACWA Power Co's value of 1.45 is 61.8% below this benchmark. Historically, ACWA Power Co's own Interest Coverage has ranged from 1.19 to 1.76 over the past decade. While the company's 10-year median is 1.71 vs. the industry median of 3.80, ACWA Power 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 3.80, based on 450 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. ACWA Power Co's current Interest Coverage of 1.45 is 61.8% 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 ACWA Power Co and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ACWA Power Co's current Interest Coverage is 1.45, which is 15% below median its own 10-year median of 1.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ACWA Power Co stock overvalued right now?
Based on GuruFocus' analysis, ACWA Power Co (SAU:2082) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼295.70, compared to a current price of ﷼193.00 — trading 34.7% below its estimated fair value. The current Interest Coverage is 1.45, which is 15% below median its 10-year median of 1.71 and 61.8% below the Utilities - Regulated industry median of 3.80. ACWA Power Co's overall GF Score™ is 86/100 with 7 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 ACWA Power Co (SAU:2082), the current Interest Coverage is 1.45 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 ACWA Power Co (SAU:2082) Overvalued in 2026?
Based on GuruFocus' analysis, ACWA Power Co stock appears to be undervalued.
The current stock price of ﷼193.00 is trading 34.7% below its estimated GF Value™ of ﷼295.70.
GuruFocus considers ACWA Power Co to be Significantly Undervalued.
Key valuation signals for SAU:2082:
Interest Coverage: 1.45 (15% below median its 10-year median of 1.71)
GF Value™: ﷼295.70 vs. price of ﷼193.00 (34.7% below fair value)
Industry Position: 61.8% below the Utilities - Regulated median (#418 of 450)
No single metric tells the full story. See the SAU:2082 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ACWA Power Co is engaged in the development, investment, operation and maintenance of power generation, water desalination and green hydrogen production plants and bulk sale of electricity, desalinated water, green hydrogen and/or green ammonia in the Kingdom of Saudi Arabia and internationally. Its segments include Thermal and Water Desalination, Renewables, and Others. The majority of the revenue is derived from Thermal and Water Desalination segment that refers to the power and water desalination plants which use fossil fuel as the main source of fuel for the generation of electricity and production of water whereas Water Desalination refers to the stand-alone reverse osmosis desalination plants.
86GF Score
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