Arabian Internet and Communications Services Co (SAU:7202) Return-on-Tangible-Asset: 14.80% (As of Jun. 2026) — 19% Above Median

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:7202 Arabian Internet and Communications Services Co SAU:7202
94 GF Score
Price ﷼207.90
GF Value ﷼324.69
Valuation Significantly Undervalued
! 1 Warning Sign
View Full Analysis

What is Arabian Internet and Communications Services Co Return-on-Tangible-Asset?

Arabian Internet and Communications Services Co SAU:7202 -2.39% 94 Return-on-Tangible-Asset is 14.80% as of Jun. 2026, which is 19% above its 10-year median of 12.46. GuruFocus rates SAU:7202 with a GF Score™ of 94/100 and a GF Value™ of ﷼324.69 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 368 Telecommunication Services companies, Arabian Internet and Communications Services Co ranks better than 87.5% 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. Arabian Internet and Communications Services Co's annualized Net Income for the quarter that ended in Jun. 2026 was ﷼1,813 Mil. Arabian Internet and Communications Services Co's average total tangible assets for the quarter that ended in Jun. 2026 was ﷼12,256 Mil. Therefore, Arabian Internet and Communications Services Co's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 14.80%.

The historical rank and industry rank for Arabian Internet and Communications Services Co's Return-on-Tangible-Asset or its related term are showing as below:

SAU:7202' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 11.24   Med: 12.46   Max: 14.27
Current: 13.07

During the past 6 years, Arabian Internet and Communications Services Co's highest Return-on-Tangible-Asset was 14.27%. The lowest was 11.24%. And the median was 12.46%.

SAU:7202's Return-on-Tangible-Asset is ranked better than
87.5% of 368 companies
in the Telecommunication Services industry
Industry Median: 3.45 vs SAU:7202: 13.07

Arabian Internet and Communications Services Co  (SAU:7202) 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.


Arabian Internet and Communications Services Co Return-on-Tangible-Asset Related Terms


Arabian Internet and Communications Services Co Return-on-Tangible-Asset Historical Data

* Premium members only.

The historical data trend for Arabian Internet and Communications Services 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.

Arabian Internet and Communications Services Co Return-on-Tangible-Asset Chart

Arabian Internet and Communications Services Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Asset
Get a 7-Day Free Trial 12.51 12.40 11.46 14.27 12.63

Arabian Internet and Communications Services 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 16.54 15.64 9.63 11.92 14.80

SAU:7202 vs VZ, TMUS, T: Return-on-Tangible-Asset Comparison

For the Telecom Services subindustry, Arabian Internet and Communications Services 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.


Arabian Internet and Communications Services Co Return-on-Tangible-Asset vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Arabian Internet and Communications Services Co's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Arabian Internet and Communications Services Co's Return-on-Tangible-Asset falls into.


SAU:7202
94GF Score
Arabian Internet and Communications Services Co SAU:7202
Return-on-Tangible-Asset is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arabian Internet and Communications Services Co Return-on-Tangible-Asset Calculation

Arabian Internet and Communications Services 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 )
=1502.536/( (11482.869+12308.463)/ 2 )
=1502.536/11895.666
=12.63 %

Arabian Internet and Communications Services 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 )
=1813.48/( (12542.076+11969.17)/ 2 )
=1813.48/12255.623
=14.80 %

* 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 14.80% mean?
Arabian Internet and Communications Services Co (SAU:7202) has a Return-on-Tangible-Asset of 14.80% 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 Arabian Internet and Communications Services Co and its competitors. This is 19% above median its historical median of 12.46. Over the past decade, Arabian Internet and Communications Services Co's Return-on-Tangible-Asset has ranged from 11.24 to 14.27. According to the industry distribution chart, Arabian Internet and Communications Services Co ranks #46 out of 368 companies in the Telecommunication Services industry, placing it in the top 12.5%.
Is Arabian Internet and Communications Services Co's Return-on-Tangible-Asset too high?
Arabian Internet and Communications Services Co's current Return-on-Tangible-Asset of 14.80% is 19% above median its 10-year median of 12.46. Over the past 10 years, this metric has ranged from a low of 11.24 to a high of 14.27. The Telecommunication Services industry median Return-on-Tangible-Asset is 3.45. Arabian Internet and Communications Services Co's value of 14.80% is 329% above this industry median. Based on the distribution chart, Arabian Internet and Communications Services Co ranks #46 out of 368 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 Return-on-Tangible-Asset compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Arabian Internet and Communications Services Co ranks #46 out of 368 companies for Return-on-Tangible-Asset. This places Arabian Internet and Communications Services Co in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.45. Arabian Internet and Communications Services Co's value of 14.80% is 329% above this benchmark. Historically, Arabian Internet and Communications Services Co's own Return-on-Tangible-Asset has ranged from 11.24 to 14.27 over the past decade. While the company's 10-year median is 12.46 vs. the industry median of 3.45, 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 Return-on-Tangible-Asset for a Telecommunication Services company?
The median Return-on-Tangible-Asset among Telecommunication Services companies is 3.45, based on 368 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. Arabian Internet and Communications Services Co's current Return-on-Tangible-Asset of 14.80% is 329% 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 Arabian Internet and Communications Services Co and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Asset is 3.45 — 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 Return-on-Tangible-Asset is 14.80%, which is 19% above median its own 10-year median of 12.46. 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 ﷼324.69, compared to a current price of ﷼207.90 — trading 36% below its estimated fair value. The current Return-on-Tangible-Asset is 14.80%, which is 19% above median its 10-year median of 12.46 and 329% above the Telecommunication Services industry median of 3.45. Arabian Internet and Communications Services Co's overall GF Score™ is 94/100 with 1 warning sign 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 Arabian Internet and Communications Services Co (SAU:7202), the current Return-on-Tangible-Asset is 14.80% 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 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 ﷼207.90 is trading 36% below its estimated GF Value™ of ﷼324.69. GuruFocus considers Arabian Internet and Communications Services Co to be Significantly Undervalued.

Key valuation signals for SAU:7202:

  • Return-on-Tangible-Asset: 14.80% (19% above median its 10-year median of 12.46)
  • GF Value™: ﷼324.69 vs. price of ﷼207.90 (36% below fair value)
  • GF Score™: 94/100 with 1 warning sign
  • Industry Position: 329% above the Telecommunication Services median (#46 of 368)

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

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

﷼207.90
Price
﷼324.69
GF Value