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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Pakistan Petroleum's Interest Coverage for the quarter that ended in Mar. 2026 was 58.17.
Pakistan Petroleum's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.01.
As of today, Pakistan Petroleum's Altman Z-Score is 2.87.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Pakistan Petroleum has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.
Pakistan Petroleum Financial Strength Related Terms
KAR:PPL vs COP, EOG, FANG: Financial Strength Comparison
For the Oil & Gas E&P subindustry, Pakistan Petroleum's Financial Strength, along with its competitors' market caps and Financial Strength 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.
Pakistan Petroleum Financial Strength vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Pakistan Petroleum's Financial Strength distribution charts can be found below:
* The bar in red indicates where Pakistan Petroleum's Financial Strength 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:
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Pakistan Petroleum Ltd has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Pakistan Petroleum's Debt to Revenue Ratio for the quarter that ended in Mar. 2026 is
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Pakistan Petroleum has a Z-score of 2.87, indicating it is in Grey Zones. This implies that Pakistan Petroleum is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.87 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* 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.
Pakistan Petroleum (KAR:PPL) has a Financial Strength of 9 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Pakistan Petroleum and its competitors. This is 10% below median its historical median of 10.00. Over the past decade, Pakistan Petroleum's Financial Strength has ranged from 8.00 to 10.00.
Is Pakistan Petroleum's Financial Strength too high?
Pakistan Petroleum's current Financial Strength of 9 is 10% below median its 10-year median of 10.00. Over the past 10 years, this metric has ranged from a low of 8.00 to a high of 10.00. Overall, Pakistan Petroleum has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pakistan Petroleum's Financial Strength compare to COP and EOG?
Pakistan Petroleum's Financial Strength of 9 can be compared against companies in the Oil & Gas industry. Historically, Pakistan Petroleum's own Financial Strength has ranged from 8.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Oil & Gas company?
A good Financial Strength depends on the Oil & Gas industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Pakistan Petroleum and its competitors. Pakistan Petroleum's current Financial Strength is 9, which is 10% below median its own 10-year median of 10.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pakistan Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Pakistan Petroleum (KAR:PPL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨86.40, compared to a current price of ₨236.47 — trading 173.7% above its estimated fair value. The current Financial Strength is 9, which is 10% below median its 10-year median of 10.00. Pakistan Petroleum's overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Pakistan Petroleum (KAR:PPL), the current Financial Strength is 9 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 Pakistan Petroleum (KAR:PPL) Overvalued in 2026?
Based on GuruFocus' analysis, Pakistan Petroleum stock appears to be overvalued.
The current stock price of ₨236.47 is trading 173.7% above its estimated GF Value™ of ₨86.40.
GuruFocus considers Pakistan Petroleum to be Significantly Overvalued.
Key valuation signals for KAR:PPL:
Financial Strength: 9 (10% below median its 10-year median of 10.00)
GF Value™: ₨86.40 vs. price of ₨236.47 (173.7% above fair value)
No single metric tells the full story. See the KAR:PPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pakistan Petroleum Ltd, or PPL along with its subsidiaries is engaged in conducting exploration, prospecting, development, and production of oil and natural gas resources. The company is organised into one operating segment i.e. exploration, development and production of oil, gas and barytes. It operates several producing fields across the country at Sui, Adhi, Kandhkot, Chachar, Mazarani, Adam, Adam West, Shadadpur and Shahdadpur West.
80GF Score
Get the complete analysis for KAR:PPL
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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