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Arabian Cement CoCAI:ARCC -0.92%71 Return-on-Tangible-Equity is 94.30% as of Mar. 2026, which is 278% above its 10-year median of 24.92. GuruFocus rates CAI:ARCC with a GF Score™ of 71/100 and a GF Value™ of E£27.76 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 397 Building Materials companies, Arabian Cement Co ranks better than 97.73% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Arabian Cement Co's annualized net income for the quarter that ended in Mar. 2026 was E£3,772 Mil. Arabian Cement Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was E£4,000 Mil. Therefore, Arabian Cement Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 94.30%.
The historical rank and industry rank for Arabian Cement Co's Return-on-Tangible-Equity or its related term are showing as below:
CAI:ARCC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -12.91 Med: 24.92 Max: 107.38
Current: 104.58
During the past 13 years, Arabian Cement Co's highest Return-on-Tangible-Equity was 107.38%. The lowest was -12.91%. And the median was 24.92%.
CAI:ARCC's Return-on-Tangible-Equity is ranked better than 97.73% of 397
companies
in the Building Materials industry
Industry Median: 5.06
vs CAI:ARCC: 104.58
Arabian Cement Co (CAI:ARCC) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Arabian Cement Co Return-on-Tangible-Equity Related Terms
Arabian Cement Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Arabian Cement Co's Return-on-Tangible-Equity 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.
CAI:ARCC vs CRH, VMC, MLM: Return-on-Tangible-Equity Comparison
For the Building Materials subindustry, Arabian Cement Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Cement Co Return-on-Tangible-Equity vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Arabian Cement Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arabian Cement Co's Return-on-Tangible-Equity falls into.
* 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 94.30% mean?
Arabian Cement Co (CAI:ARCC) has a Return-on-Tangible-Equity of 94.30% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Arabian Cement Co and its competitors. This is 278% above median its historical median of 24.92. According to the industry distribution chart, Arabian Cement Co ranks #9 out of 397 companies in the Building Materials industry, placing it in the top 2.3%.
Is Arabian Cement Co's Return-on-Tangible-Equity too high?
Arabian Cement Co's current Return-on-Tangible-Equity of 94.30% is 278% above median its 10-year median of 24.92. The Building Materials industry median Return-on-Tangible-Equity is 5.06. Arabian Cement Co's value of 94.30% is 1763.6% above this industry median. Based on the distribution chart, Arabian Cement Co ranks #9 out of 397 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Arabian Cement Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arabian Cement Co's Return-on-Tangible-Equity compare to CRH and VMC?
According to the Building Materials industry distribution chart, Arabian Cement Co ranks #9 out of 397 companies for Return-on-Tangible-Equity. This places Arabian Cement Co in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.06. Arabian Cement Co's value of 94.30% is 1763.6% above this benchmark. While the company's 10-year median is 24.92 vs. the industry median of 5.06, Arabian Cement 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-Equity for a Building Materials company?
The median Return-on-Tangible-Equity among Building Materials companies is 5.06, based on 397 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arabian Cement Co's current Return-on-Tangible-Equity of 94.30% is 1763.6% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Arabian Cement Co and its competitors. For the Building Materials industry, the median Return-on-Tangible-Equity is 5.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Cement Co's current Return-on-Tangible-Equity is 94.30%, which is 278% above median its own 10-year median of 24.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Cement Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Cement Co (CAI:ARCC) is currently considered Significantly Overvalued. The stock's GF Value™ is E£27.76, compared to a current price of E£54.66 — trading 96.9% above its estimated fair value. The current Return-on-Tangible-Equity is 94.30%, which is 278% above median its 10-year median of 24.92 and 1763.6% above the Building Materials industry median of 5.06. Arabian Cement Co's overall GF Score™ is 71/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Arabian Cement Co (CAI:ARCC), the current Return-on-Tangible-Equity is 94.30% 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 Arabian Cement Co (CAI:ARCC) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Cement Co stock appears to be overvalued.
The current stock price of E£54.66 is trading 96.9% above its estimated GF Value™ of E£27.76.
GuruFocus considers Arabian Cement Co to be Significantly Overvalued.
Key valuation signals for CAI:ARCC:
Return-on-Tangible-Equity: 94.30% (278% above median its 10-year median of 24.92)
GF Value™: E£27.76 vs. price of E£54.66 (96.9% above fair value)
Industry Position: 1763.6% above the Building Materials median (#9 of 397)
No single metric tells the full story. See the CAI:ARCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Cement Co is engaged in the business of manufacturing and selling clinker, cement, and other related products, and the usage of mines and extraction of all mining materials required to produce construction materials, and road transportation of all the company's products. The company sells its products in Egypt and exports them to other countries, of which key revenue is derived within Egypt. Its products include Clinker, Cement, and Concrete. Some of its brands are Al Mosalah and Al Nasr.
71GF Score
Get the complete analysis for CAI:ARCC
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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