Arabian Cement CoSAU:3010 +0.26%87 Interest Coverage is 254.77 as of Mar. 2026, which is 1963% above its 10-year median of 12.35. GuruFocus rates SAU:3010 with a GF Score™ of 87/100 and a GF Value™ of ﷼32.73 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 307 Building Materials companies, Arabian Cement Co ranks better than 85.67% 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. Arabian Cement Co's
Operating Income
for the
three
months ended in Mar. 2026 was ﷼61 Mil. Arabian Cement Co's Interest Expense for the
three
months ended in Mar. 2026 was ﷼-0 Mil.
Arabian Cement Co's interest coverage for the quarter that ended in Mar. 2026 was 254.77.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Arabian Cement Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Arabian Cement Co's Interest Coverage or its related term are showing as below:
SAU:3010'
s Interest Coverage Range Over the Past 10 Years
Min: 8.99 Med: 12.35 Max: 63.14
Current: 63.14
SAU:3010's Interest Coverage is ranked better than 85.67% of 307
companies
in the Building Materials industry
Industry Median: 6.63
vs SAU:3010: 63.14
Arabian Cement Co (SAU:3010) 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 .
Arabian Cement Co Interest Coverage Related Terms
Arabian Cement Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Arabian Cement 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:3010 vs CRH, VMC, MLM: Interest Coverage Comparison
For the Building Materials subindustry, Arabian Cement 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.
Arabian Cement Co Interest Coverage vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Arabian Cement Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Arabian Cement 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.
Arabian Cement Co (SAU:3010) has a Interest Coverage of 254.77 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arabian Cement Co and its competitors. This is 1963% above median its historical median of 12.35. Over the past decade, Arabian Cement Co's Interest Coverage has ranged from 8.99 to 63.14. According to the industry distribution chart, Arabian Cement Co ranks #44 out of 307 companies in the Building Materials industry, placing it in the top 14.3%.
Is Arabian Cement Co's Interest Coverage too high?
Arabian Cement Co's current Interest Coverage of 254.77 is 1963% above median its 10-year median of 12.35. Over the past 10 years, this metric has ranged from a low of 8.99 to a high of 63.14. The Building Materials industry median Interest Coverage is 6.63. Arabian Cement Co's value of 254.77 is 3742.7% above this industry median. Based on the distribution chart, Arabian Cement Co ranks #44 out of 307 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Arabian Cement Co has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arabian Cement Co's Interest Coverage compare to CRH and VMC?
According to the Building Materials industry distribution chart, Arabian Cement Co ranks #44 out of 307 companies for Interest Coverage. This places Arabian Cement Co in the top 14% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 6.63. Arabian Cement Co's value of 254.77 is 3742.7% above this benchmark. Historically, Arabian Cement Co's own Interest Coverage has ranged from 8.99 to 63.14 over the past decade. While the company's 10-year median is 12.35 vs. the industry median of 6.63, Arabian Cement 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 Building Materials company?
The median Interest Coverage among Building Materials companies is 6.63, based on 307 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. Arabian Cement Co's current Interest Coverage of 254.77 is 3742.7% 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 Arabian Cement Co and its competitors. For the Building Materials industry, the median Interest Coverage is 6.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Cement Co's current Interest Coverage is 254.77, which is 1963% above median its own 10-year median of 12.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Cement Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Cement Co (SAU:3010) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼32.73, compared to a current price of ﷼22.97 — trading 29.8% below its estimated fair value. The current Interest Coverage is 254.77, which is 1963% above median its 10-year median of 12.35 and 3742.7% above the Building Materials industry median of 6.63. Arabian Cement Co's overall GF Score™ is 87/100 with 3 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 Arabian Cement Co (SAU:3010), the current Interest Coverage is 254.77 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 Arabian Cement Co (SAU:3010) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Cement Co stock appears to be undervalued.
The current stock price of ﷼22.97 is trading 29.8% below its estimated GF Value™ of ﷼32.73.
GuruFocus considers Arabian Cement Co to be Significantly Undervalued.
Key valuation signals for SAU:3010:
Interest Coverage: 254.77 (1963% above median its 10-year median of 12.35)
GF Value™: ﷼32.73 vs. price of ﷼22.97 (29.8% below fair value)
Industry Position: 3742.7% above the Building Materials median (#44 of 307)
No single metric tells the full story. See the SAU:3010 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Cement Co Ltd operates as a cement company in the Kingdom of Saudi Arabia and the Arabian Gulf region. Along with its subsidiaries, the company is engaged in the production of cement, building materials, trading of clinker, cement, construction materials, and other related materials and derivatives. The company's geographical segments include Inside KSA and the Outside Kingdom of Saudi Arabia. It derives a majority of its revenue from Inside KSA.
87GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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