Arabian Internet and Communications Services Co (SAU:7202) Interest Coverage: 17.83 (As of Mar. 2026) — 62% Below Median

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SAU:7202 Arabian Internet and Communications Services Co SAU:7202
94 GF Score
Price ﷼203.10
GF Value ﷼331.99
Valuation Significantly Undervalued
! 2 Warning Signs
View Full Analysis

What is Arabian Internet and Communications Services Co Interest Coverage?

Arabian Internet and Communications Services Co SAU:7202 +0.05% 94 Interest Coverage is 17.83 as of Mar. 2026, which is 62% below its 10-year median of 47.41. GuruFocus rates SAU:7202 with a GF Score™ of 94/100 and a GF Value™ of ﷼331.99 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 283 Telecommunication Services companies, Arabian Internet and Communications Services Co ranks better than 78.09% 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 Internet and Communications Services Co's Operating Income for the three months ended in Mar. 2026 was ﷼399 Mil. Arabian Internet and Communications Services Co's Interest Expense for the three months ended in Mar. 2026 was ﷼-22 Mil. Arabian Internet and Communications Services Co's interest coverage for the quarter that ended in Mar. 2026 was 17.83. The higher the ratio, the stronger the company's financial strength is.

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

SAU:7202' s Interest Coverage Range Over the Past 10 Years
Min: 17.86   Med: 47.41   Max: 979.44
Current: 17.86


SAU:7202's Interest Coverage is ranked better than
78.09% of 283 companies
in the Telecommunication Services industry
Industry Median: 4.74 vs SAU:7202: 17.86

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 Internet and Communications Services Co  (SAU:7202) 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 Internet and Communications Services Co Interest Coverage Related Terms


Arabian Internet and Communications Services Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Arabian Internet and Communications 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 Internet and Communications Services Co Interest Coverage Chart

Arabian Internet and Communications Services Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial 979.44 72.22 18.23 22.59 18.45

Arabian Internet and Communications 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 20.74 21.08 22.02 12.52 17.83

SAU:7202 vs TMUS, VZ, T: Interest Coverage Comparison

For the Telecom Services subindustry, Arabian Internet and Communications 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 Internet and Communications Services Co Interest Coverage vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Arabian Internet and Communications Services Co's Interest Coverage distribution charts can be found below:

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


SAU:7202
94GF Score
Arabian Internet and Communications Services Co SAU:7202
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arabian Internet and Communications 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 Internet and Communications 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 Internet and Communications Services Co's Interest Expense was ﷼-89 Mil. Its Operating Income was ﷼1,641 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼867 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*1641.431/-88.968
=18.45

Arabian Internet and Communications 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 Internet and Communications Services Co's Interest Expense was ﷼-22 Mil. Its Operating Income was ﷼399 Mil. And its Long-Term Debt & Capital Lease Obligation was ﷼841 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*399.038/-22.386
=17.83

* 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 17.83 mean?
Arabian Internet and Communications Services Co (SAU:7202) has a Interest Coverage of 17.83 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arabian Internet and Communications Services Co and its competitors. This is 62% below median its historical median of 47.41. Over the past decade, Arabian Internet and Communications Services Co's Interest Coverage has ranged from 17.86 to 979.44. According to the industry distribution chart, Arabian Internet and Communications Services Co ranks #62 out of 283 companies in the Telecommunication Services industry, placing it in the top 21.9%.
Is Arabian Internet and Communications Services Co's Interest Coverage too high?
Arabian Internet and Communications Services Co's current Interest Coverage of 17.83 is 62% below median its 10-year median of 47.41. Over the past 10 years, this metric has ranged from a low of 17.86 to a high of 979.44. The Telecommunication Services industry median Interest Coverage is 4.74. Arabian Internet and Communications Services Co's value of 17.83 is 276.2% above this industry median. Based on the distribution chart, Arabian Internet and Communications Services Co ranks #62 out of 283 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Arabian Internet and Communications Services Co has a GF Score™ of 94/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arabian Internet and Communications Services Co's Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Arabian Internet and Communications Services Co ranks #62 out of 283 companies for Interest Coverage. This places Arabian Internet and Communications Services Co in the top 22% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 4.74. Arabian Internet and Communications Services Co's value of 17.83 is 276.2% above this benchmark. Historically, Arabian Internet and Communications Services Co's own Interest Coverage has ranged from 17.86 to 979.44 over the past decade. While the company's 10-year median is 47.41 vs. the industry median of 4.74, Arabian Internet and Communications Services 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 4.74, based on 283 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 Internet and Communications Services Co's current Interest Coverage of 17.83 is 276.2% 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 Arabian Internet and Communications Services Co 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. Arabian Internet and Communications Services Co's current Interest Coverage is 17.83, which is 62% below median its own 10-year median of 47.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Internet and Communications Services Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Internet and Communications Services Co (SAU:7202) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼331.99, compared to a current price of ﷼203.10 — trading 38.8% below its estimated fair value. The current Interest Coverage is 17.83, which is 62% below median its 10-year median of 47.41 and 276.2% above the Telecommunication Services industry median of 4.74. Arabian Internet and Communications Services Co's overall GF Score™ is 94/100 with 2 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 Internet and Communications Services Co (SAU:7202), the current Interest Coverage is 17.83 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 Internet and Communications Services Co (SAU:7202) Overvalued in 2026?

Based on GuruFocus' analysis, Arabian Internet and Communications Services Co stock appears to be undervalued. The current stock price of ﷼203.10 is trading 38.8% below its estimated GF Value™ of ﷼331.99. GuruFocus considers Arabian Internet and Communications Services Co to be Significantly Undervalued.

Key valuation signals for SAU:7202:

  • Interest Coverage: 17.83 (62% below median its 10-year median of 47.41)
  • GF Value™: ﷼331.99 vs. price of ﷼203.10 (38.8% below fair value)
  • GF Score™: 94/100 with 2 warning signs
  • Industry Position: 276.2% above the Telecommunication Services median (#62 of 283)

No single metric tells the full story. See the SAU:7202 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arabian Internet and Communications Services Co Business Description

Address Olaya Street, P.O. Box 50, Riyadh, SAU, 11372
Arabian Internet and Communications Services Co is an information and communication company. The company operates in three segments namely, Solutions by STC, GIZA Group, and Contact Center Company. The company's revenue mainly comprises of Solutions by STC segment. The services provided by the company are Core ICT Services, IT Managed and Operational Services, and Digital Services.
94GF Score

Get the complete analysis for SAU:7202

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

﷼203.10
Price
﷼331.99
GF Value