Etihad Etisalat Co JSC (SAU:7020) Interest Coverage: 6.39 (As of Mar. 2026) — 102% Above Median

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SAU:7020 Etihad Etisalat Co JSC SAU:7020
81 GF Score
Price ﷼62.65
GF Value ﷼62.90
Valuation Fairly Valued
! 3 Warning Signs
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What is Etihad Etisalat Co JSC Interest Coverage?

Etihad Etisalat Co JSC SAU:7020 +0.40% 81 Interest Coverage is 6.39 as of Mar. 2026, which is 102% above its 10-year median of 3.17. GuruFocus rates SAU:7020 with a GF Score™ of 81/100 and a GF Value™ of ﷼62.90 (Fairly Valued). The stock has 3 warning signs investors should review. Among 284 Telecommunication Services companies, Etihad Etisalat Co JSC ranks better than 63.03% 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. Etihad Etisalat Co JSC's Operating Income for the three months ended in Mar. 2026 was ﷼992 Mil. Etihad Etisalat Co JSC's Interest Expense for the three months ended in Mar. 2026 was ﷼-155 Mil. Etihad Etisalat Co JSC's interest coverage for the quarter that ended in Mar. 2026 was 6.39. The higher the ratio, the stronger the company's financial strength is.

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

SAU:7020' s Interest Coverage Range Over the Past 10 Years
Min: 0.38   Med: 3.17   Max: 7.36
Current: 7.36


SAU:7020's Interest Coverage is ranked better than
63.03% of 284 companies
in the Telecommunication Services industry
Industry Median: 4.74 vs SAU:7020: 7.36

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


Etihad Etisalat Co JSC  (SAU:7020) 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 .


Etihad Etisalat Co JSC Interest Coverage Related Terms


Etihad Etisalat Co JSC Interest Coverage Historical Data

* Premium members only.

The historical data trend for Etihad Etisalat Co JSC'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.

Etihad Etisalat Co JSC Interest Coverage Chart

Etihad Etisalat Co JSC 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 3.75 4.19 4.76 6.19 6.97

Etihad Etisalat Co JSC 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 5.16 5.28 5.93 21.20 6.39

SAU:7020 vs TMUS, VZ, T: Interest Coverage Comparison

For the Telecom Services subindustry, Etihad Etisalat Co JSC'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.


Etihad Etisalat Co JSC Interest Coverage vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Etihad Etisalat Co JSC's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Etihad Etisalat Co JSC's Interest Coverage falls into.


SAU:7020
81GF Score
Etihad Etisalat Co JSC SAU:7020
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Etihad Etisalat Co JSC 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.

Etihad Etisalat Co JSC'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, Etihad Etisalat Co JSC's Interest Expense was ﷼-558 Mil. Its Operating Income was ﷼3,887 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼7,740 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*3887.028/-557.662
=6.97

Etihad Etisalat Co JSC's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Etihad Etisalat Co JSC's Interest Expense was ﷼-155 Mil. Its Operating Income was ﷼992 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼7,279 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*992.156/-155.358
=6.39

* 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 6.39 mean?
Etihad Etisalat Co JSC (SAU:7020) has a Interest Coverage of 6.39 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Etihad Etisalat Co JSC and its competitors. This is 102% above median its historical median of 3.17. Over the past decade, Etihad Etisalat Co JSC's Interest Coverage has ranged from 0.38 to 7.36. According to the industry distribution chart, Etihad Etisalat Co JSC ranks #105 out of 284 companies in the Telecommunication Services industry, placing it in the top 37%.
Is Etihad Etisalat Co JSC's Interest Coverage too high?
Etihad Etisalat Co JSC's current Interest Coverage of 6.39 is 102% above median its 10-year median of 3.17. Over the past 10 years, this metric has ranged from a low of 0.38 to a high of 7.36. The Telecommunication Services industry median Interest Coverage is 4.74. Etihad Etisalat Co JSC's value of 6.39 is 34.8% above this industry median. Based on the distribution chart, Etihad Etisalat Co JSC ranks #105 out of 284 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Etihad Etisalat Co JSC has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Etihad Etisalat Co JSC's Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Etihad Etisalat Co JSC ranks #105 out of 284 companies for Interest Coverage. This puts Etihad Etisalat Co JSC in the upper half of its industry. The industry median Interest Coverage is 4.74. Etihad Etisalat Co JSC's value of 6.39 is 34.8% above this benchmark. Historically, Etihad Etisalat Co JSC's own Interest Coverage has ranged from 0.38 to 7.36 over the past decade. While the company's 10-year median is 3.17 vs. the industry median of 4.74, Etihad Etisalat Co JSC 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 4.74, 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. Etihad Etisalat Co JSC's current Interest Coverage of 6.39 is 34.8% 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 Etihad Etisalat Co JSC and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Etihad Etisalat Co JSC's current Interest Coverage is 6.39, which is 102% above median its own 10-year median of 3.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Etihad Etisalat Co JSC stock overvalued right now?
Based on GuruFocus' analysis, Etihad Etisalat Co JSC (SAU:7020) is currently considered Fairly Valued. The stock's GF Value™ is ﷼62.90, compared to a current price of ﷼62.65 — trading 0.4% below its estimated fair value. The current Interest Coverage is 6.39, which is 102% above median its 10-year median of 3.17 and 34.8% above the Telecommunication Services industry median of 4.74. Etihad Etisalat Co JSC's overall GF Score™ is 81/100 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 Etihad Etisalat Co JSC (SAU:7020), the current Interest Coverage is 6.39 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 Etihad Etisalat Co JSC (SAU:7020) Overvalued in 2026?

Based on GuruFocus' analysis, Etihad Etisalat Co JSC stock appears to be undervalued. The current stock price of ﷼62.65 is trading 0.4% below its estimated GF Value™ of ﷼62.90. GuruFocus considers Etihad Etisalat Co JSC to be Fairly Valued.

Key valuation signals for SAU:7020:

  • Interest Coverage: 6.39 (102% above median its 10-year median of 3.17)
  • GF Value™: ﷼62.90 vs. price of ﷼62.65 (0.4% below fair value)
  • GF Score™: 81/100 with 3 warning signs
  • Industry Position: 34.8% above the Telecommunication Services median (#105 of 284)

No single metric tells the full story. See the SAU:7020 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Etihad Etisalat Co JSC Business Description

Address P.O. Box 23088, Riyadh, SAU, 11321
Etihad Etisalat Co JSC operates in the telecom sector. The company also manages, installs, and operates telephone networks, terminals, and telecommunication unit systems, as well as to sell and maintains mobile phones and telecommunication units in the Kingdom of Saudi Arabia. The company's segment includes Consumer, Business, Wholesale and Others. It derives maximum revenue from Consumer segment, which includes products and services such as voice calls, mobile Internet, and fixed Internet. The company has provides integrated services for three main sectors; individuals, businesses, and carriers. All of the company's operations are principally conducted in the Kingdom of Saudi Arabia.
81GF Score

Get the complete analysis for SAU:7020

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

﷼62.65
Price
﷼62.90
GF Value