Middle East Healthcare Co (SAU:4009) Operating Income: ﷼343 Mil (TTM As of Jun. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

SAU:4009 Middle East Healthcare Co SAU:4009
82 GF Score
Price ﷼33.38
GF Value ﷼77.13
Valuation Possible Value Trap
! 6 Warning Signs
View Full Analysis

What is Middle East Healthcare Co Operating Income?

Middle East Healthcare Co SAU:4009 -0.24% 82 Operating Income is ﷼343 Mil as of Jun. 2026. GuruFocus rates SAU:4009 with a GF Score™ of 82/100 and a GF Value™ of ﷼77.13 (Possible Value Trap). The stock has 6 warning signs investors should review.

Middle East Healthcare Co's Operating Income for the three months ended in Jun. 2026 was ﷼88 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was ﷼343 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Middle East Healthcare Co's Operating Income for the three months ended in Jun. 2026 was ﷼88 Mil. Middle East Healthcare Co's Revenue for the three months ended in Jun. 2026 was ﷼846 Mil. Therefore, Middle East Healthcare Co's Operating Margin % for the quarter that ended in Jun. 2026 was 10.45%.

Good Sign:

Middle East Healthcare Co operating margin is expanding. Margin expansion is usually a good sign.

Middle East Healthcare Co's 5-Year average Growth Rate for Operating Margin % was 27.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Middle East Healthcare Co's annualized ROC % for the quarter that ended in Jun. 2026 was 6.32%. Middle East Healthcare Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 7.55%.


Middle East Healthcare Co  (SAU:4009) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Middle East Healthcare Co's annualized ROC % for the quarter that ended in Jun. 2026 is calculated as:

ROC % (Q: Jun. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2026 ) + Invested Capital (Q: Jun. 2026 ))/ count )
=353.408 * ( 1 - 12.89% )/( (5058.644 + 4679.535)/ 2 )
=307.8537088/4869.0895
=6.32 %

where

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5467.522 - 384.781 - ( 24.097 - max(0, 1468.15 - 2167.892+24.097))
=5058.644

Invested Capital(Q: Jun. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5164.019 - 401.942 - ( 82.542 - max(0, 1506.772 - 2335.056+82.542))
=4679.535

Note: The Operating Income data used here is four times the quarterly (Jun. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Middle East Healthcare Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2026  Q: Jun. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=336.036/( ( (3196.444 + max(1447.551, 0)) + (2724.344 + max(1535.498, 0)) )/ 2 )
=336.036/( ( 4643.995 + 4259.842 )/ 2 )
=336.036/4451.9185
=7.55 %

where Working Capital is:

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1913.768 + 83.265 + 134.582) - (384.781 + 0 + 299.283)
=1447.551

Working Capital(Q: Jun. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2000.87 + 102.897 + 148.747) - (401.942 + 0 + 315.074)
=1535.498

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Middle East Healthcare Co's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2026 )/Revenue (Q: Jun. 2026 )
=88.352/845.52
=10.45 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Middle East Healthcare Co Operating Income Related Terms


Middle East Healthcare Co Operating Income Historical Data

* Premium members only.

The historical data trend for Middle East Healthcare Co's Operating Income 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.

Middle East Healthcare Co Operating Income Chart

Middle East Healthcare Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 62.60 144.85 331.02 446.63 393.03

Middle East Healthcare Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Operating Income 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 118.18 87.44 92.70 74.50 88.35
SAU:4009
82GF Score
Middle East Healthcare Co SAU:4009
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Middle East Healthcare Co Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ﷼343 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of ﷼343 Mil mean?
Middle East Healthcare Co (SAU:4009) has a Operating Income of ﷼343 Mil as of Jun. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Middle East Healthcare Co and its competitors.
Is Middle East Healthcare Co's Operating Income too high?
Middle East Healthcare Co's current Operating Income is ﷼343 Mil. Overall, Middle East Healthcare Co has a GF Score™ of 82/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Middle East Healthcare Co's Operating Income compare to HCA and THC?
Middle East Healthcare Co's Operating Income of ﷼343 Mil can be compared against companies in the Healthcare Providers & Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Healthcare Providers & Services company?
A good Operating Income depends on the Healthcare Providers & Services industry context. However, Operating Income 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 Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Middle East Healthcare Co and its competitors. Middle East Healthcare Co's current Operating Income is ﷼343 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Middle East Healthcare Co stock overvalued right now?
Based on GuruFocus' analysis, Middle East Healthcare Co (SAU:4009) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼77.13, compared to a current price of ﷼33.38 — trading 56.7% below its estimated fair value. The current Operating Income is ﷼343 Mil. Middle East Healthcare Co's overall GF Score™ is 82/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Middle East Healthcare Co (SAU:4009), the current Operating Income is ﷼343 Mil as of Jun. 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 Middle East Healthcare Co (SAU:4009) Overvalued in 2026?

Based on GuruFocus' analysis, Middle East Healthcare Co stock appears to be undervalued. The current stock price of ﷼33.38 is trading 56.7% below its estimated GF Value™ of ﷼77.13. GuruFocus considers Middle East Healthcare Co to be Possible Value Trap.

Key valuation signals for SAU:4009:

  • Operating Income: ﷼343 Mil
  • GF Value™: ﷼77.13 vs. price of ﷼33.38 (56.7% below fair value)
  • GF Score™: 82/100 with 6 warning signs

No single metric tells the full story. See the SAU:4009 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Middle East Healthcare Co Business Description

Address 4, Batterjee Road, P.O.Box 2550, Al-Zahra District, Jeddah, SAU, 21461
Middle East Healthcare Co is a Saudi Arabia-based company engaged in the business of managing, operating and maintaining hospitals, medical centers, educational centers, rehabilitation centers, physiotherapy, laboratories and radiology centers, pharmacies, construction, and to buy land for the purpose of constructing medical projects and to establish, manage and organize exhibitions for the company. The company's reportable segments are Inpatient Services, Outpatient Services, Pharmacy Sales and Others. The majority of revenue is derived from the Inpatient Services segment.
82GF Score

Get the complete analysis for SAU:4009

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

﷼33.38
Price
﷼77.13
GF Value