Edarat Communication And Information Technology Co (SAU:9557) Return-on-Tangible-Asset: 24.38% (As of Jun. 2026) — 28% Below Median

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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.
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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:9557 Edarat Communication And Information Technology Co SAU:9557
59 GF Score
Price ﷼270.00
GF Value ﷼303.72
Valuation Modestly Undervalued
! 4 Warning Signs
View Full Analysis

What is Edarat Communication And Information Technology Co Return-on-Tangible-Asset?

Edarat Communication And Information Technology Co SAU:9557 -0.74% 59 Return-on-Tangible-Asset is 24.38% as of Jun. 2026, which is 28% below its 10-year median of 34.09. GuruFocus rates SAU:9557 with a GF Score™ of 59/100 and a GF Value™ of ﷼303.72 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,887 Software companies, Edarat Communication And Information Technology Co ranks better than 95.01% 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. Edarat Communication And Information Technology Co's annualized Net Income for the quarter that ended in Jun. 2026 was ﷼39.6 Mil. Edarat Communication And Information Technology Co's average total tangible assets for the quarter that ended in Jun. 2026 was ﷼162.3 Mil. Therefore, Edarat Communication And Information Technology Co's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 24.38%.

The historical rank and industry rank for Edarat Communication And Information Technology Co's Return-on-Tangible-Asset or its related term are showing as below:

SAU:9557' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 25.76   Med: 34.09   Max: 39.28
Current: 27.62

During the past 5 years, Edarat Communication And Information Technology Co's highest Return-on-Tangible-Asset was 39.28%. The lowest was 25.76%. And the median was 34.09%.

SAU:9557's Return-on-Tangible-Asset is ranked better than
95.01% of 2887 companies
in the Software industry
Industry Median: 2.04 vs SAU:9557: 27.62

Edarat Communication And Information Technology Co  (SAU:9557) 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.


Edarat Communication And Information Technology Co Return-on-Tangible-Asset Related Terms


Edarat Communication And Information Technology Co Return-on-Tangible-Asset Historical Data

* Premium members only.

The historical data trend for Edarat Communication And Information Technology 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.

Edarat Communication And Information Technology Co Return-on-Tangible-Asset Chart

Edarat Communication And Information Technology Co Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Asset
25.76 39.28 35.83 34.09 29.06

Edarat Communication And Information Technology Co Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
Return-on-Tangible-Asset Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.67 32.96 29.56 29.83 24.38

SAU:9557 vs IBM, ACN, CTSH: Return-on-Tangible-Asset Comparison

For the Information Technology Services subindustry, Edarat Communication And Information Technology 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.


Edarat Communication And Information Technology Co Return-on-Tangible-Asset vs Software Industry

For the Software industry and Technology sector, Edarat Communication And Information Technology Co's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Edarat Communication And Information Technology Co's Return-on-Tangible-Asset falls into.


SAU:9557
59GF Score
Edarat Communication And Information Technology Co SAU:9557
Return-on-Tangible-Asset is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Edarat Communication And Information Technology Co Return-on-Tangible-Asset Calculation

Edarat Communication And Information Technology 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 )
=36.341/( (86.763+163.369)/ 2 )
=36.341/125.066
=29.06 %

Edarat Communication And Information Technology 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: Dec. 2025 )(Q: Jun. 2026 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Jun. 2026 )  (Q: Dec. 2025 )(Q: Jun. 2026 )
=39.572/( (163.369+161.245)/ 2 )
=39.572/162.307
=24.38 %

* 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 two times the semi-annual (Jun. 2026) net income data.

What does a Return-on-Tangible-Asset of 24.38% mean?
Edarat Communication And Information Technology Co (SAU:9557) has a Return-on-Tangible-Asset of 24.38% 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 Edarat Communication And Information Technology Co and its competitors. This is 28% below median its historical median of 34.09. Over the past decade, Edarat Communication And Information Technology Co's Return-on-Tangible-Asset has ranged from 25.76 to 39.28. According to the industry distribution chart, Edarat Communication And Information Technology Co ranks #144 out of 2887 companies in the Software industry, placing it in the top 5%.
Is Edarat Communication And Information Technology Co's Return-on-Tangible-Asset too high?
Edarat Communication And Information Technology Co's current Return-on-Tangible-Asset of 24.38% is 28% below median its 10-year median of 34.09. Over the past 10 years, this metric has ranged from a low of 25.76 to a high of 39.28. The Software industry median Return-on-Tangible-Asset is 2.04. Edarat Communication And Information Technology Co's value of 24.38% is 1095.1% above this industry median. Based on the distribution chart, Edarat Communication And Information Technology Co ranks #144 out of 2887 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Edarat Communication And Information Technology Co has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Edarat Communication And Information Technology Co's Return-on-Tangible-Asset compare to IBM and ACN?
According to the Software industry distribution chart, Edarat Communication And Information Technology Co ranks #144 out of 2887 companies for Return-on-Tangible-Asset. This places Edarat Communication And Information Technology Co in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.04. Edarat Communication And Information Technology Co's value of 24.38% is 1095.1% above this benchmark. Historically, Edarat Communication And Information Technology Co's own Return-on-Tangible-Asset has ranged from 25.76 to 39.28 over the past decade. While the company's 10-year median is 34.09 vs. the industry median of 2.04, Edarat Communication And Information Technology 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 Software company?
The median Return-on-Tangible-Asset among Software companies is 2.04, based on 2,887 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. Edarat Communication And Information Technology Co's current Return-on-Tangible-Asset of 24.38% is 1095.1% 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 Edarat Communication And Information Technology Co and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Edarat Communication And Information Technology Co's current Return-on-Tangible-Asset is 24.38%, which is 28% below median its own 10-year median of 34.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Edarat Communication And Information Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Edarat Communication And Information Technology Co (SAU:9557) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼303.72, compared to a current price of ﷼270.00 — trading 11.1% below its estimated fair value. The current Return-on-Tangible-Asset is 24.38%, which is 28% below median its 10-year median of 34.09 and 1095.1% above the Software industry median of 2.04. Edarat Communication And Information Technology Co's overall GF Score™ is 59/100 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 Edarat Communication And Information Technology Co (SAU:9557), the current Return-on-Tangible-Asset is 24.38% 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 Edarat Communication And Information Technology Co (SAU:9557) Overvalued in 2026?

Based on GuruFocus' analysis, Edarat Communication And Information Technology Co stock appears to be undervalued. The current stock price of ﷼270.00 is trading 11.1% below its estimated GF Value™ of ﷼303.72. GuruFocus considers Edarat Communication And Information Technology Co to be Modestly Undervalued.

Key valuation signals for SAU:9557:

  • Return-on-Tangible-Asset: 24.38% (28% below median its 10-year median of 34.09)
  • GF Value™: ﷼303.72 vs. price of ﷼270.00 (11.1% below fair value)
  • GF Score™: 59/100 with 4 warning signs
  • Industry Position: 1095.1% above the Software median (#144 of 2887)

No single metric tells the full story. See the SAU:9557 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Edarat Communication And Information Technology Co Business Description

Address King Abdulaziz Road, PO Box. No. 2414, Al Yasmeen District, Riyadh, SAU, 13322
Edarat Communication And Information Technology Co is engaged in the implementation of service contracts including provision of virtual network operator services, colocation services, system analysis, design and programming of software, providing management and monitoring of communications and information networks, establishing web hosting infrastructure and related services, data center services and related activities and subscriptions to provide cloud computing service. Its services include data center engineering, data center colocation, Edge AI, Edarat Marketplace, and cloud services. The company has two operating segments; Data Center Engineering Services and Cloud Service. It derives maximum revenue from Data Center Engineering Services segment.
59GF Score

Get the complete analysis for SAU:9557

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

﷼270.00
Price
﷼303.72
GF Value