Arabian Centres Co (SAU:4321) Interest Coverage: 1.78 (As of Mar. 2026) — 80% Below Median

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SAU:4321 Arabian Centres Co SAU:4321
80 GF Score
Price ﷼16.19
GF Value ﷼21.19
Valuation Modestly Undervalued
! 7 Warning Signs
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What is Arabian Centres Co Interest Coverage?

Arabian Centres Co SAU:4321 -1.82% 80 Interest Coverage is 1.78 as of Mar. 2026, which is 80% below its 10-year median of 8.75. GuruFocus rates SAU:4321 with a GF Score™ of 80/100 and a GF Value™ of ﷼21.19 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,305 Real Estate companies, Arabian Centres Co ranks better than 65.13% 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 Centres Co's Operating Income for the three months ended in Mar. 2026 was ﷼396 Mil. Arabian Centres Co's Interest Expense for the three months ended in Mar. 2026 was ﷼-222 Mil. Arabian Centres Co's interest coverage for the quarter that ended in Mar. 2026 was 1.78. The higher the ratio, the stronger the company's financial strength is.

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

SAU:4321' s Interest Coverage Range Over the Past 10 Years
Min: 3.87   Med: 8.75   Max: 13.1
Current: 8.06


SAU:4321's Interest Coverage is ranked better than
65.13% of 1305 companies
in the Real Estate industry
Industry Median: 4.21 vs SAU:4321: 8.06

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 Centres Co  (SAU:4321) 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 Centres Co Interest Coverage Related Terms


Arabian Centres Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Arabian Centres 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 Centres Co Interest Coverage Chart

Arabian Centres Co Annual Data
Trend Mar18 Mar19 Mar20 Mar21 Mar22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial 4.77 8.26 13.10 12.83 11.20

Arabian Centres 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 2.37 2.47 1.99 0.00 1.78

SAU:4321 vs JOE: Interest Coverage Comparison

For the Real Estate - Diversified subindustry, Arabian Centres 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 Centres Co Interest Coverage vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Arabian Centres Co's Interest Coverage distribution charts can be found below:

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


SAU:4321
80GF Score
Arabian Centres Co SAU:4321
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arabian Centres 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 Centres 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 Centres Co's Interest Expense was ﷼-139 Mil. Its Operating Income was ﷼1,557 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼16,099 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*1556.788/-139.007
=11.20

Arabian Centres 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 Centres Co's Interest Expense was ﷼-222 Mil. Its Operating Income was ﷼396 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼16,925 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*396.359/-222.287
=1.78

* 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 1.78 mean?
Arabian Centres Co (SAU:4321) has a Interest Coverage of 1.78 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arabian Centres Co and its competitors. This is 80% below median its historical median of 8.75. Over the past decade, Arabian Centres Co's Interest Coverage has ranged from 3.87 to 13.10. According to the industry distribution chart, Arabian Centres Co ranks #455 out of 1305 companies in the Real Estate industry, placing it in the top 34.9%.
Is Arabian Centres Co's Interest Coverage too high?
Arabian Centres Co's current Interest Coverage of 1.78 is 80% below median its 10-year median of 8.75. Over the past 10 years, this metric has ranged from a low of 3.87 to a high of 13.10. The Real Estate industry median Interest Coverage is 4.21. Arabian Centres Co's value of 1.78 is 57.7% below this industry median. Based on the distribution chart, Arabian Centres Co ranks #455 out of 1305 companies in the Real Estate industry, which is above the industry midpoint. Overall, Arabian Centres Co has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arabian Centres Co's Interest Coverage compare to JOE?
According to the Real Estate industry distribution chart, Arabian Centres Co ranks #455 out of 1305 companies for Interest Coverage. This puts Arabian Centres Co in the upper half of its industry. The industry median Interest Coverage is 4.21. Arabian Centres Co's value of 1.78 is 57.7% below this benchmark. Historically, Arabian Centres Co's own Interest Coverage has ranged from 3.87 to 13.10 over the past decade. While the company's 10-year median is 8.75 vs. the industry median of 4.21, Arabian Centres 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 Real Estate company?
The median Interest Coverage among Real Estate companies is 4.21, based on 1,305 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 Centres Co's current Interest Coverage of 1.78 is 57.7% 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 Centres Co and its competitors. For the Real Estate industry, the median Interest Coverage is 4.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Centres Co's current Interest Coverage is 1.78, which is 80% below median its own 10-year median of 8.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Centres Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Centres Co (SAU:4321) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼21.19, compared to a current price of ﷼16.19 — trading 23.6% below its estimated fair value. The current Interest Coverage is 1.78, which is 80% below median its 10-year median of 8.75 and 57.7% below the Real Estate industry median of 4.21. Arabian Centres Co's overall GF Score™ is 80/100 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 Arabian Centres Co (SAU:4321), the current Interest Coverage is 1.78 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 Centres Co (SAU:4321) Overvalued in 2026?

Based on GuruFocus' analysis, Arabian Centres Co stock appears to be undervalued. The current stock price of ﷼16.19 is trading 23.6% below its estimated GF Value™ of ﷼21.19. GuruFocus considers Arabian Centres Co to be Modestly Undervalued.

Key valuation signals for SAU:4321:

  • Interest Coverage: 1.78 (80% below median its 10-year median of 8.75)
  • GF Value™: ﷼21.19 vs. price of ﷼16.19 (23.6% below fair value)
  • GF Score™: 80/100 with 7 warning signs
  • Industry Position: 57.7% below the Real Estate median (#455 of 1305)

No single metric tells the full story. See the SAU:4321 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arabian Centres Co Business Description

Address 8838, Prince Turki Ibn Abdulaziz Al Awwal Road, King Saud University District, Riyadh, SAU, 12373-4925
Arabian Centres Co and its subsidiaries' principal business objectives are to purchase land, build, develop, and invest in buildings, and sell or lease buildings, including the construction of commercial buildings with demolition, repair, excavation, and maintenance works. The Group also maintains and operates commercial centres, tourist resorts, hotels and restaurants, and manages exhibitions, compounds, and hospitals. Its licensed activities include construction and renovation of residential and non-residential buildings, buying and selling land and real estate, leasing and property management, real estate development using modern construction methods, and real estate marketing, advertising, and maintenance service activities for buildings.
80GF Score

Get the complete analysis for SAU:4321

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

﷼16.19
Price
﷼21.19
GF Value