Saudi Telecom CoSAU:7010 +0.83%89 Interest Coverage is 11.26 as of Mar. 2026, which is 49% below its 10-year median of 22.11. GuruFocus rates SAU:7010 with a GF Score™ of 89/100 and a GF Value™ of ﷼44.27 (Fairly Valued). The stock has 9 warning signs investors should review. Among 284 Telecommunication Services companies, Saudi Telecom Co ranks better than 72.18% 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 Telecom Co's
Operating Income
for the
three
months ended in Mar. 2026 was ﷼3,725 Mil. Saudi Telecom Co's Interest Expense for the
three
months ended in Mar. 2026 was ﷼-331 Mil.
Saudi Telecom Co's interest coverage for the quarter that ended in Mar. 2026 was 11.26.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Saudi Telecom Co's Interest Coverage or its related term are showing as below:
SAU:7010'
s Interest Coverage Range Over the Past 10 Years
Min: 10.79 Med: 22.11 Max: 32.53
Current: 12.48
SAU:7010's Interest Coverage is ranked better than 72.18% of 284
companies
in the Telecommunication Services industry
Industry Median: 4.685
vs SAU:7010: 12.48
Saudi Telecom Co (SAU:7010) 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 Telecom Co Interest Coverage Related Terms
Saudi Telecom Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Saudi Telecom 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:7010 vs TMUS, VZ, T: Interest Coverage Comparison
For the Telecom Services subindustry, Saudi Telecom 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 Telecom Co Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Saudi Telecom Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Saudi Telecom 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.
Saudi Telecom Co (SAU:7010) has a Interest Coverage of 11.26 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Saudi Telecom Co and its competitors. This is 49% below median its historical median of 22.11. Over the past decade, Saudi Telecom Co's Interest Coverage has ranged from 10.79 to 32.53. According to the industry distribution chart, Saudi Telecom Co ranks #79 out of 284 companies in the Telecommunication Services industry, placing it in the top 27.8%.
Is Saudi Telecom Co's Interest Coverage too high?
Saudi Telecom Co's current Interest Coverage of 11.26 is 49% below median its 10-year median of 22.11. Over the past 10 years, this metric has ranged from a low of 10.79 to a high of 32.53. The Telecommunication Services industry median Interest Coverage is 4.69. Saudi Telecom Co's value of 11.26 is 140.3% above this industry median. Based on the distribution chart, Saudi Telecom Co ranks #79 out of 284 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Saudi Telecom Co has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Saudi Telecom Co's Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Saudi Telecom Co ranks #79 out of 284 companies for Interest Coverage. This puts Saudi Telecom Co in the upper half of its industry. The industry median Interest Coverage is 4.69. Saudi Telecom Co's value of 11.26 is 140.3% above this benchmark. Historically, Saudi Telecom Co's own Interest Coverage has ranged from 10.79 to 32.53 over the past decade. While the company's 10-year median is 22.11 vs. the industry median of 4.69, Saudi Telecom 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 Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.69, based on 284 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 Telecom Co's current Interest Coverage of 11.26 is 140.3% 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 Saudi Telecom Co and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Telecom Co's current Interest Coverage is 11.26, which is 49% below median its own 10-year median of 22.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Telecom Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Telecom Co (SAU:7010) is currently considered Fairly Valued. The stock's GF Value™ is ﷼44.27, compared to a current price of ﷼43.28 — trading 2.2% below its estimated fair value. The current Interest Coverage is 11.26, which is 49% below median its 10-year median of 22.11 and 140.3% above the Telecommunication Services industry median of 4.69. Saudi Telecom Co's overall GF Score™ is 89/100 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 Saudi Telecom Co (SAU:7010), the current Interest Coverage is 11.26 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 Telecom Co (SAU:7010) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Telecom Co stock appears to be undervalued.
The current stock price of ﷼43.28 is trading 2.2% below its estimated GF Value™ of ﷼44.27.
GuruFocus considers Saudi Telecom Co to be Fairly Valued.
Key valuation signals for SAU:7010:
Interest Coverage: 11.26 (49% below median its 10-year median of 22.11)
GF Value™: ﷼44.27 vs. price of ﷼43.28 (2.2% below fair value)
Industry Position: 140.3% above the Telecommunication Services median (#79 of 284)
No single metric tells the full story. See the SAU:7010 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Telecom Co offers telecommunications, information and media services that establish, manage, operates and maintains fixed and mobile telecommunication networks and systems to customers. The company manufactures and markets devices, equipment, and components of different telecommunication networks including fixed, moving and special networks, and computer programs and the other intellectual properties. It is also engaged in real estate investment activities. The company principally earns its revenue from airtime usage, messaging, data services, interconnect fees, connection fees and device sales. Its reportable segments include: stc; Channels; Solutions; stc Kuwait; stc Bahrain; Center 3; STC Bank; Sirar; Specialized; iot2; and Other operating segments.
89GF 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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