Arabian Contracting Services Co (SAU:4071) Interest Coverage: 1.19 (As of Mar. 2026) — 65% Below Median

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SAU:4071 Arabian Contracting Services Co SAU:4071
81 GF Score
Price ﷼80.15
GF Value ﷼195.81
Valuation Possible Value Trap
! 9 Warning Signs
View Full Analysis

What is Arabian Contracting Services Co Interest Coverage?

Arabian Contracting Services Co SAU:4071 -1.60% 81 Interest Coverage is 1.19 as of Mar. 2026, which is 65% below its 10-year median of 3.39. GuruFocus rates SAU:4071 with a GF Score™ of 81/100 and a GF Value™ of ﷼195.81 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 606 Media - Diversified companies, Arabian Contracting Services Co ranks worse than 86.63% 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 Contracting Services Co's Operating Income for the three months ended in Mar. 2026 was ﷼119 Mil. Arabian Contracting Services Co's Interest Expense for the three months ended in Mar. 2026 was ﷼-99 Mil. Arabian Contracting Services Co's interest coverage for the quarter that ended in Mar. 2026 was 1.19. 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. Arabian Contracting Services Co interest coverage is 1.56, which is low.

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

SAU:4071' s Interest Coverage Range Over the Past 10 Years
Min: 1.52   Med: 3.39   Max: 7.95
Current: 1.56


SAU:4071's Interest Coverage is ranked worse than
86.63% of 606 companies
in the Media - Diversified industry
Industry Median: 11.935 vs SAU:4071: 1.56

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Arabian Contracting Services Co  (SAU:4071) 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 Contracting Services Co Interest Coverage Related Terms


Arabian Contracting Services Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Arabian Contracting Services 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.

Arabian Contracting Services Co Interest Coverage Chart

Arabian Contracting Services Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial 7.95 6.96 3.98 2.13 1.52

Arabian Contracting Services 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 3.25 0.12 0.00 0.00 1.19

SAU:4071 vs APP, OMC, TTD: Interest Coverage Comparison

For the Advertising Agencies subindustry, Arabian Contracting Services 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 Contracting Services Co Interest Coverage vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Arabian Contracting Services Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Arabian Contracting Services Co's Interest Coverage falls into.


SAU:4071
81GF Score
Arabian Contracting Services Co SAU:4071
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arabian Contracting Services 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.

Arabian Contracting Services 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, Arabian Contracting Services Co's Interest Expense was ﷼-356 Mil. Its Operating Income was ﷼543 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼3,635 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*543.082/-356.336
=1.52

Arabian Contracting Services Co's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Arabian Contracting Services Co's Interest Expense was ﷼-99 Mil. Its Operating Income was ﷼119 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼3,210 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*118.735/-99.381
=1.19

* 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 1.19 mean?
Arabian Contracting Services Co (SAU:4071) has a Interest Coverage of 1.19 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arabian Contracting Services Co and its competitors. This is 65% below median its historical median of 3.39. Over the past decade, Arabian Contracting Services Co's Interest Coverage has ranged from 1.52 to 7.95. According to the industry distribution chart, Arabian Contracting Services Co ranks #525 out of 606 companies in the Media - Diversified industry, placing it in the top 86.6%.
Is Arabian Contracting Services Co's Interest Coverage too high?
Arabian Contracting Services Co's current Interest Coverage of 1.19 is 65% below median its 10-year median of 3.39. Over the past 10 years, this metric has ranged from a low of 1.52 to a high of 7.95. The Media - Diversified industry median Interest Coverage is 11.94. Arabian Contracting Services Co's value of 1.19 is 90% below this industry median. Based on the distribution chart, Arabian Contracting Services Co ranks #525 out of 606 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Arabian Contracting Services Co has a GF Score™ of 81/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Arabian Contracting Services Co's Interest Coverage compare to APP and OMC?
According to the Media - Diversified industry distribution chart, Arabian Contracting Services Co ranks #525 out of 606 companies for Interest Coverage. This places Arabian Contracting Services Co in the lower half of its industry. The industry median Interest Coverage is 11.94. Arabian Contracting Services Co's value of 1.19 is 90% below this benchmark. Historically, Arabian Contracting Services Co's own Interest Coverage has ranged from 1.52 to 7.95 over the past decade. While the company's 10-year median is 3.39 vs. the industry median of 11.94, Arabian Contracting Services 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 Media - Diversified company?
The median Interest Coverage among Media - Diversified companies is 11.94, based on 606 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 Contracting Services Co's current Interest Coverage of 1.19 is 90% 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 Arabian Contracting Services Co and its competitors. For the Media - Diversified industry, the median Interest Coverage is 11.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Contracting Services Co's current Interest Coverage is 1.19, which is 65% below median its own 10-year median of 3.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Contracting Services Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Contracting Services Co (SAU:4071) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼195.81, compared to a current price of ﷼80.15 — trading 59.1% below its estimated fair value. The current Interest Coverage is 1.19, which is 65% below median its 10-year median of 3.39 and 90% below the Media - Diversified industry median of 11.94. Arabian Contracting Services Co's overall GF Score™ is 81/100 with 9 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 Contracting Services Co (SAU:4071), the current Interest Coverage is 1.19 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 Contracting Services Co (SAU:4071) Overvalued in 2026?

Based on GuruFocus' analysis, Arabian Contracting Services Co stock appears to be undervalued. The current stock price of ﷼80.15 is trading 59.1% below its estimated GF Value™ of ﷼195.81. GuruFocus considers Arabian Contracting Services Co to be Possible Value Trap.

Key valuation signals for SAU:4071:

  • Interest Coverage: 1.19 (65% below median its 10-year median of 3.39)
  • GF Value™: ﷼195.81 vs. price of ﷼80.15 (59.1% below fair value)
  • GF Score™: 81/100 with 9 warning signs
  • Industry Position: 90% below the Media - Diversified median (#525 of 606)

No single metric tells the full story. See the SAU:4071 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arabian Contracting Services Co Business Description

Address Olaya Towers, Tower B, Floor 33, P.O.Box 55905, Riyadh, SAU, 11544
Arabian Contracting Services Co is an outdoor advertising solution provider, offering clients expertise across a multitude of platforms and disciplines. It is mainly engaged in establishing and operating outdoor advertising billboards, including roadside and indoor advertisements. The group's operating segments are Advertising and Others. The Advertising segment, which generates a majority of its revenue, is engaged in the provision of indoor and outdoor advertisements. The Others segment includes all types of printing work and retail sales by mail. Geographically, the group derives maximum revenue from its business in the Kingdom of Saudi Arabia, and also has a presence in the Arab Republic of Egypt and the United Arab Emirates.
81GF Score

Get the complete analysis for SAU:4071

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

﷼80.15
Price
﷼195.81
GF Value