Saudi Chemical Co (SAU:2230) Return-on-Tangible-Asset: 5.78% (As of Jun. 2026) — 63% Above Median

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SAU:2230 Saudi Chemical Co SAU:2230
79 GF Score
Price ﷼8.13
GF Value ﷼8.58
Valuation Fairly Valued
! 4 Warning Signs
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What is Saudi Chemical Co Return-on-Tangible-Asset?

Saudi Chemical Co SAU:2230 +0.87% 79 Return-on-Tangible-Asset is 5.78% as of Jun. 2026, which is 63% above its 10-year median of 3.55. GuruFocus rates SAU:2230 with a GF Score™ of 79/100 and a GF Value™ of ﷼8.58 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,007 Drug Manufacturers companies, Saudi Chemical Co ranks better than 64.95% on this metric.

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Saudi Chemical Co's annualized Net Income for the quarter that ended in Jun. 2026 was ﷼322 Mil. Saudi Chemical Co's average total tangible assets for the quarter that ended in Jun. 2026 was ﷼5,572 Mil. Therefore, Saudi Chemical Co's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 5.78%.

The historical rank and industry rank for Saudi Chemical Co's Return-on-Tangible-Asset or its related term are showing as below:

SAU:2230' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.79   Med: 3.55   Max: 6.24
Current: 6.24

During the past 13 years, Saudi Chemical Co's highest Return-on-Tangible-Asset was 6.24%. The lowest was 0.79%. And the median was 3.55%.

SAU:2230's Return-on-Tangible-Asset is ranked better than
64.95% of 1007 companies
in the Drug Manufacturers industry
Industry Median: 2.95 vs SAU:2230: 6.24

Saudi Chemical Co  (SAU:2230) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


Saudi Chemical Co Return-on-Tangible-Asset Related Terms


Saudi Chemical Co Return-on-Tangible-Asset Historical Data

* Premium members only.

The historical data trend for Saudi Chemical Co's Return-on-Tangible-Asset 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.

Saudi Chemical Co Return-on-Tangible-Asset Chart

Saudi Chemical Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.63 1.97 4.40 5.86 5.96

Saudi Chemical Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Return-on-Tangible-Asset 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 4.85 6.10 6.82 6.28 5.78

SAU:2230 vs ZTS, UTHR, VTRS: Return-on-Tangible-Asset Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Saudi Chemical Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.


Saudi Chemical Co Return-on-Tangible-Asset vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Saudi Chemical Co's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Saudi Chemical Co's Return-on-Tangible-Asset falls into.


SAU:2230
79GF Score
Saudi Chemical Co SAU:2230
Return-on-Tangible-Asset is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Saudi Chemical Co Return-on-Tangible-Asset Calculation

Saudi Chemical Co's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2025 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=335.318/( (5635.488+5614.693)/ 2 )
=335.318/5625.0905
=5.96 %

Saudi Chemical Co's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=322.276/( (5489.758+5653.98)/ 2 )
=322.276/5571.869
=5.78 %

* 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.

In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2026) net income data.

What does a Return-on-Tangible-Asset of 5.78% mean?
Saudi Chemical Co (SAU:2230) has a Return-on-Tangible-Asset of 5.78% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Saudi Chemical Co and its competitors. This is 63% above median its historical median of 3.55. Over the past decade, Saudi Chemical Co's Return-on-Tangible-Asset has ranged from 0.79 to 6.24. According to the industry distribution chart, Saudi Chemical Co ranks #353 out of 1007 companies in the Drug Manufacturers industry, placing it in the top 35.1%.
Is Saudi Chemical Co's Return-on-Tangible-Asset too high?
Saudi Chemical Co's current Return-on-Tangible-Asset of 5.78% is 63% above median its 10-year median of 3.55. Over the past 10 years, this metric has ranged from a low of 0.79 to a high of 6.24. The Drug Manufacturers industry median Return-on-Tangible-Asset is 2.95. Saudi Chemical Co's value of 5.78% is 95.9% above this industry median. Based on the distribution chart, Saudi Chemical Co ranks #353 out of 1007 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Saudi Chemical Co has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Saudi Chemical Co's Return-on-Tangible-Asset compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Saudi Chemical Co ranks #353 out of 1007 companies for Return-on-Tangible-Asset. This puts Saudi Chemical Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.95. Saudi Chemical Co's value of 5.78% is 95.9% above this benchmark. Historically, Saudi Chemical Co's own Return-on-Tangible-Asset has ranged from 0.79 to 6.24 over the past decade. While the company's 10-year median is 3.55 vs. the industry median of 2.95, Saudi Chemical 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 Return-on-Tangible-Asset for a Drug Manufacturers company?
The median Return-on-Tangible-Asset among Drug Manufacturers companies is 2.95, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Saudi Chemical Co's current Return-on-Tangible-Asset of 5.78% is 95.9% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Saudi Chemical Co and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Asset is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Chemical Co's current Return-on-Tangible-Asset is 5.78%, which is 63% above median its own 10-year median of 3.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Chemical Co (SAU:2230) is currently considered Fairly Valued. The stock's GF Value™ is ﷼8.58, compared to a current price of ﷼8.13 — trading 5.2% below its estimated fair value. The current Return-on-Tangible-Asset is 5.78%, which is 63% above median its 10-year median of 3.55 and 95.9% above the Drug Manufacturers industry median of 2.95. Saudi Chemical Co's overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Saudi Chemical Co (SAU:2230), the current Return-on-Tangible-Asset is 5.78% 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 Saudi Chemical Co (SAU:2230) Overvalued in 2026?

Based on GuruFocus' analysis, Saudi Chemical Co stock appears to be undervalued. The current stock price of ﷼8.13 is trading 5.2% below its estimated GF Value™ of ﷼8.58. GuruFocus considers Saudi Chemical Co to be Fairly Valued.

Key valuation signals for SAU:2230:

  • Return-on-Tangible-Asset: 5.78% (63% above median its 10-year median of 3.55)
  • GF Value™: ﷼8.58 vs. price of ﷼8.13 (5.2% below fair value)
  • GF Score™: 79/100 with 4 warning signs
  • Industry Position: 95.9% above the Drug Manufacturers median (#353 of 1007)

No single metric tells the full story. See the SAU:2230 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Saudi Chemical Co Business Description

Address Al-Ihsa Road, Al-Malaz, P.O. Box 2665, Riyadh, SAU, 11461
Saudi Chemical Co, along with its subsidiaries, is engaged in the manufacturing and distribution of explosives and their derivatives. Its other business operations include providing technical support services in explosions, wholesale and retail trading in medicines, medical materials and syrups, pharmaceutical preparations, medical and surgical tools, and equipment, supplies of hospitals and medical centers, and the manufacture of ammonium nitrate. The company operates in three segments: Explosives, Medicines & medical supplies, and Production of Ammonium Nitrate. It generates the majority of its revenue from Medicines & medical supplies.
79GF Score

Get the complete analysis for SAU:2230

Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

﷼8.13
Price
﷼8.58
GF Value