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Riyadh Steel CoSAU:9588 22 Interest Coverage is 7.34 as of Dec. 2025, which is 6% below its 10-year median of 7.81. GuruFocus rates SAU:9588 with a GF Score™ of 22/100. The stock has 3 warning signs investors should review. Among 455 Steel companies, Riyadh Steel Co ranks better than 61.54% 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. Riyadh Steel Co's
Operating Income
for the
six
months ended in Dec. 2025 was ﷼4.1 Mil. Riyadh Steel Co's Interest Expense for the
six
months ended in Dec. 2025 was ﷼-0.6 Mil.
Riyadh Steel Co's interest coverage for the quarter that ended in Dec. 2025 was 7.34.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Riyadh Steel Co's Interest Coverage or its related term are showing as below:
SAU:9588'
s Interest Coverage Range Over the Past 10 Years
Min: 2.02 Med: 7.81 Max: 28.65
Current: 7.81
SAU:9588's Interest Coverage is ranked better than 61.54% of 455
companies
in the Steel industry
Industry Median: 4.57
vs SAU:9588: 7.81
Riyadh Steel Co (SAU:9588) 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 .
Riyadh Steel Co Interest Coverage Related Terms
Riyadh Steel Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Riyadh Steel 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:9588 vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Riyadh Steel 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.
Riyadh Steel Co Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Riyadh Steel Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Riyadh Steel 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.
Riyadh Steel Co (SAU:9588) has a Interest Coverage of 7.34 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Riyadh Steel Co and its competitors. This is near median its historical median of 7.81. Over the past decade, Riyadh Steel Co's Interest Coverage has ranged from 2.02 to 28.65. According to the industry distribution chart, Riyadh Steel Co ranks #175 out of 455 companies in the Steel industry, placing it in the top 38.5%.
Is Riyadh Steel Co's Interest Coverage too high?
Riyadh Steel Co's current Interest Coverage of 7.34 is near median its 10-year median of 7.81. Over the past 10 years, this metric has ranged from a low of 2.02 to a high of 28.65. The Steel industry median Interest Coverage is 4.57. Riyadh Steel Co's value of 7.34 is 60.6% above this industry median. Based on the distribution chart, Riyadh Steel Co ranks #175 out of 455 companies in the Steel industry, which is above the industry midpoint. Overall, Riyadh Steel Co has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Riyadh Steel Co's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Riyadh Steel Co ranks #175 out of 455 companies for Interest Coverage. This puts Riyadh Steel Co in the upper half of its industry. The industry median Interest Coverage is 4.57. Riyadh Steel Co's value of 7.34 is 60.6% above this benchmark. Historically, Riyadh Steel Co's own Interest Coverage has ranged from 2.02 to 28.65 over the past decade. While the company's 10-year median is 7.81 vs. the industry median of 4.57, Riyadh Steel 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 Steel company?
The median Interest Coverage among Steel companies is 4.57, based on 455 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. Riyadh Steel Co's current Interest Coverage of 7.34 is 60.6% 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 Riyadh Steel Co and its competitors. For the Steel industry, the median Interest Coverage is 4.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Riyadh Steel Co's current Interest Coverage is 7.34, which is near median its own 10-year median of 7.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Riyadh Steel Co stock overvalued right now?
Riyadh Steel Co (SAU:9588) has a current Interest Coverage of 7.34. The current Interest Coverage is 7.34, which is near median its 10-year median of 7.81 and 60.6% above the Steel industry median of 4.57. Riyadh Steel Co's overall GF Score™ is 22/100 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 Riyadh Steel Co (SAU:9588), the current Interest Coverage is 7.34 as of Dec. 2025. 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.
Riyadh Steel Co Group is a steel manufacturer principally engaged in the production of sheets, plates, strip coils, rods, skewers, corners, wires, and sections. The Company provides steel scrap, billets, and ASTM A36 standard flat and angle bars, and generates revenue from the sale of angled and flat bars and other finished goods, billets, and scrap iron and raw materials. It mainly operates in the Kingdom of Saudi Arabia, which generates the majority of its revenue, and also has a presence in other GCC countries.
22GF Score
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