Saudi Marketing Co (SAU:4006) Interest Coverage: 1.30 (As of Mar. 2026) — Near Median

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SAU:4006 Saudi Marketing Co SAU:4006
74 GF Score
Price ﷼12.44
GF Value ﷼20.95
Valuation Possible Value Trap
! 6 Warning Signs
View Full Analysis

What is Saudi Marketing Co Interest Coverage?

Saudi Marketing Co SAU:4006 +0.97% 74 Interest Coverage is 1.30 as of Mar. 2026, which is 2% below its 10-year median of 1.33. GuruFocus rates SAU:4006 with a GF Score™ of 74/100 and a GF Value™ of ﷼20.95 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 837 Retail - Cyclical companies, Saudi Marketing Co ranks worse than 88.05% 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 Marketing Co's Operating Income for the three months ended in Mar. 2026 was ﷼26 Mil. Saudi Marketing Co's Interest Expense for the three months ended in Mar. 2026 was ﷼-20 Mil. Saudi Marketing Co's interest coverage for the quarter that ended in Mar. 2026 was 1.30. 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. Saudi Marketing Co interest coverage is 1.4, which is low.

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

SAU:4006' s Interest Coverage Range Over the Past 10 Years
Min: 0.52   Med: 1.33   Max: 11.25
Current: 1.4


SAU:4006's Interest Coverage is ranked worse than
88.05% of 837 companies
in the Retail - Cyclical industry
Industry Median: 7.45 vs SAU:4006: 1.40

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 Marketing Co  (SAU:4006) 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 Marketing Co Interest Coverage Related Terms


Saudi Marketing Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Saudi Marketing 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 Marketing Co Interest Coverage Chart

Saudi Marketing 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 1.20 1.28 1.19 1.38 1.45

Saudi Marketing 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 1.50 1.27 1.06 1.93 1.30

SAU:4006 vs DDS: Interest Coverage Comparison

For the Department Stores subindustry, Saudi Marketing 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 Marketing Co Interest Coverage vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Saudi Marketing Co's Interest Coverage distribution charts can be found below:

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


SAU:4006
74GF Score
Saudi Marketing Co SAU:4006
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Saudi Marketing 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 Marketing 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 Marketing Co's Interest Expense was ﷼-87 Mil. Its Operating Income was ﷼127 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼696 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*127.079/-87.48
=1.45

Saudi Marketing 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 Marketing Co's Interest Expense was ﷼-20 Mil. Its Operating Income was ﷼26 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼740 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*26.163/-20.137
=1.30

* 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 1.30 mean?
Saudi Marketing Co (SAU:4006) has a Interest Coverage of 1.30 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Saudi Marketing Co and its competitors. This is near median its historical median of 1.33. Over the past decade, Saudi Marketing Co's Interest Coverage has ranged from 0.52 to 11.25. According to the industry distribution chart, Saudi Marketing Co ranks #737 out of 837 companies in the Retail - Cyclical industry, placing it in the top 88.1%.
Is Saudi Marketing Co's Interest Coverage too high?
Saudi Marketing Co's current Interest Coverage of 1.30 is near median its 10-year median of 1.33. Over the past 10 years, this metric has ranged from a low of 0.52 to a high of 11.25. The Retail - Cyclical industry median Interest Coverage is 7.45. Saudi Marketing Co's value of 1.30 is 82.6% below this industry median. Based on the distribution chart, Saudi Marketing Co ranks #737 out of 837 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Saudi Marketing Co has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Saudi Marketing Co's Interest Coverage compare to DDS?
According to the Retail - Cyclical industry distribution chart, Saudi Marketing Co ranks #737 out of 837 companies for Interest Coverage. This places Saudi Marketing Co in the lower half of its industry. The industry median Interest Coverage is 7.45. Saudi Marketing Co's value of 1.30 is 82.6% below this benchmark. Historically, Saudi Marketing Co's own Interest Coverage has ranged from 0.52 to 11.25 over the past decade. While the company's 10-year median is 1.33 vs. the industry median of 7.45, Saudi Marketing 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 a Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.45, based on 837 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 Marketing Co's current Interest Coverage of 1.30 is 82.6% 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 Marketing Co and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Marketing Co's current Interest Coverage is 1.30, which is near median its own 10-year median of 1.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Marketing Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Marketing Co (SAU:4006) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼20.95, compared to a current price of ﷼12.44 — trading 40.6% below its estimated fair value. The current Interest Coverage is 1.30, which is near median its 10-year median of 1.33 and 82.6% below the Retail - Cyclical industry median of 7.45. Saudi Marketing Co's overall GF Score™ is 74/100 with 6 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 Marketing Co (SAU:4006), the current Interest Coverage is 1.30 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 Marketing Co (SAU:4006) Overvalued in 2026?

Based on GuruFocus' analysis, Saudi Marketing Co stock appears to be undervalued. The current stock price of ﷼12.44 is trading 40.6% below its estimated GF Value™ of ﷼20.95. GuruFocus considers Saudi Marketing Co to be Possible Value Trap.

Key valuation signals for SAU:4006:

  • Interest Coverage: 1.30 (near median its 10-year median of 1.33)
  • GF Value™: ﷼20.95 vs. price of ﷼12.44 (40.6% below fair value)
  • GF Score™: 74/100 with 6 warning signs
  • Industry Position: 82.6% below the Retail - Cyclical median (#737 of 837)

No single metric tells the full story. See the SAU:4006 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Saudi Marketing Co Business Description

Address King Fahd Road, Al Nasiriyah Area, P.O Box 4605, Dammam, SAU, 31412
Saudi Marketing Co operates stores. The farm markets include a wide products and varieties of fresh products, consumer goods, and household items. It operates in three reportable segments: The retail segment- this segment includes sale of goods to customers commonly at the store checkout for the sales via the Group's stores. The household segment- this segment includes sale of goods to the wholesale customers. The entertainment service segment- this segment includes services provided by operating kids play grounds "Adventure World". Key revenue is generated from Retail segment.
74GF Score

Get the complete analysis for SAU:4006

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

﷼12.44
Price
﷼20.95
GF Value