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-Babtain Power & Telecommunication Co's
Operating Income
for the
three
months ended in Mar. 2026 was ﷼168 Mil. Al-Babtain Power & Telecommunication Co's Interest Expense for the
three
months ended in Mar. 2026 was ﷼-18 Mil.
Al-Babtain Power & Telecommunication Co's interest coverage for the quarter that ended in Mar. 2026 was 9.38.
The higher the ratio, the stronger the company's financial strength is.
Al-Babtain Power & Telecommunication Co (SAU:2320) 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-Babtain Power & Telecommunication Co Interest Coverage Related Terms
Al-Babtain Power & Telecommunication 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-Babtain Power & Telecommunication Co Interest Coverage Chart
Al-Babtain Power & Telecommunication Co Annual Data
SAU:2320 vs PWR, FIX, EME: Interest Coverage Comparison
For the Engineering & Construction subindustry, Al-Babtain Power & Telecommunication 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-Babtain Power & Telecommunication Co Interest Coverage vs Construction Industry
Al-Babtain Power & Telecommunication 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-Babtain Power & Telecommunication Co (SAU:2320) has a Interest Coverage of 9.38 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Al-Babtain Power & Telecommunication Co and its competitors. This is 149% above median its historical median of 3.76. Over the past decade, Al-Babtain Power & Telecommunication Co's Interest Coverage has ranged from 2.16 to 8.30. According to the industry distribution chart, Al-Babtain Power & Telecommunication Co ranks #660 out of 1351 companies in the Construction industry, placing it in the top 48.9%.
Is Al-Babtain Power & Telecommunication Co's Interest Coverage too high?
Al-Babtain Power & Telecommunication Co's current Interest Coverage of 9.38 is 149% above median its 10-year median of 3.76. Over the past 10 years, this metric has ranged from a low of 2.16 to a high of 8.30. The Construction industry median Interest Coverage is 7.81. Al-Babtain Power & Telecommunication Co's value of 9.38 is 20.1% above this industry median. Based on the distribution chart, Al-Babtain Power & Telecommunication Co ranks #660 out of 1351 companies in the Construction industry, which is above the industry midpoint. Overall, Al-Babtain Power & Telecommunication Co has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Al-Babtain Power & Telecommunication Co's Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, Al-Babtain Power & Telecommunication Co ranks #660 out of 1351 companies for Interest Coverage. This puts Al-Babtain Power & Telecommunication Co in the upper half of its industry. The industry median Interest Coverage is 7.81. Al-Babtain Power & Telecommunication Co's value of 9.38 is 20.1% above this benchmark. Historically, Al-Babtain Power & Telecommunication Co's own Interest Coverage has ranged from 2.16 to 8.30 over the past decade. While the company's 10-year median is 3.76 vs. the industry median of 7.81, Al-Babtain Power & Telecommunication 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 Construction company?
The median Interest Coverage among Construction companies is 7.81, based on 1,351 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-Babtain Power & Telecommunication Co's current Interest Coverage of 9.38 is 20.1% 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 Al-Babtain Power & Telecommunication 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. Al-Babtain Power & Telecommunication Co's current Interest Coverage is 9.38, which is 149% above median its own 10-year median of 3.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al-Babtain Power & Telecommunication Co stock overvalued right now?
Based on GuruFocus' analysis, Al-Babtain Power & Telecommunication Co (SAU:2320) is currently considered Significantly Overvalued. The stock's GF Value™ is ﷼47.71, compared to a current price of ﷼64.55 — trading 35.3% above its estimated fair value. The current Interest Coverage is 9.38, which is 149% above median its 10-year median of 3.76 and 20.1% above the Construction industry median of 7.81. Al-Babtain Power & Telecommunication Co's overall GF Score™ is 68/100 with 1 warning sign 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-Babtain Power & Telecommunication Co (SAU:2320), the current Interest Coverage is 9.38 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-Babtain Power & Telecommunication Co (SAU:2320) Overvalued in 2026?
Based on GuruFocus' analysis, Al-Babtain Power & Telecommunication Co stock appears to be overvalued.
The current stock price of ﷼64.55 is trading 35.3% above its estimated GF Value™ of ﷼47.71.
GuruFocus considers Al-Babtain Power & Telecommunication Co to be Significantly Overvalued.
Key valuation signals for SAU:2320:
Interest Coverage: 9.38 (149% above median its 10-year median of 3.76)
GF Value™: ﷼47.71 vs. price of ﷼64.55 (35.3% above fair value)
Industry Position: 20.1% above the Construction median (#660 of 1351)
No single metric tells the full story. See the SAU:2320 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al-Babtain Power & Telecommunication Co Business Description
Al-Babtain Power & Telecommunication Co designs and manufactures poles, masts, and lighting systems for streets, stadiums, and public spaces, as well as towers and poles for power transmission and telecommunications. The company also produces and markets decorative poles and LED lighting, and provides installation, operation, and maintenance services for telecommunications systems, computer networks, and industrial equipment. In addition, it manufactures metal components such as solar photovoltaic tracking systems and fixed structures, supports wind energy and power generation projects, and undertakes electrical and mechanical works, communication system design and installation, as well as contracting and oil and gas field services.
68GF Score
Get the complete analysis for SAU:2320
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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