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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. Al-Arabiya Real Estate Co KSC's annualized net income for the quarter that ended in Mar. 2026 was KWD-1.07 Mil. Al-Arabiya Real Estate Co KSC's average shareholder tangible equity for the quarter that ended in Mar. 2026 was KWD44.08 Mil. Therefore, Al-Arabiya Real Estate Co KSC's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -2.43%.
The historical rank and industry rank for Al-Arabiya Real Estate Co KSC's Return-on-Tangible-Equity or its related term are showing as below:
KUW:ARABREC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -26.57 Med: -3.12 Max: 7.44
Current: -1.33
During the past 13 years, Al-Arabiya Real Estate Co KSC's highest Return-on-Tangible-Equity was 7.44%. The lowest was -26.57%. And the median was -3.12%.
KUW:ARABREC's Return-on-Tangible-Equity is ranked worse than 75.36% of 1713
companies
in the Real Estate industry
Industry Median: 4.26
vs KUW:ARABREC: -1.33
Al-Arabiya Real Estate Co KSC (KUW:ARABREC) 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.
Al-Arabiya Real Estate Co KSC Return-on-Tangible-Equity Related Terms
Al-Arabiya Real Estate Co KSC Return-on-Tangible-Equity Historical Data
* 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.
Al-Arabiya Real Estate Co KSC Return-on-Tangible-Equity Chart
KUW:ARABREC vs CBRE, BEKE, JLL: Return-on-Tangible-Equity Comparison
For the Real Estate Services subindustry, Al-Arabiya Real Estate Co KSC'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.
Al-Arabiya Real Estate Co KSC Return-on-Tangible-Equity vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Al-Arabiya Real Estate Co KSC's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Al-Arabiya Real Estate Co KSC'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 -2.43% mean?
Al-Arabiya Real Estate Co KSC (KUW:ARABREC) has a Return-on-Tangible-Equity of -2.43% 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 Al-Arabiya Real Estate Co KSC and its competitors. According to the industry distribution chart, Al-Arabiya Real Estate Co KSC ranks #1291 out of 1713 companies in the Real Estate industry, placing it in the top 75.4%.
Is Al-Arabiya Real Estate Co KSC's Return-on-Tangible-Equity too high?
Al-Arabiya Real Estate Co KSC's current Return-on-Tangible-Equity is -2.43%. Based on the distribution chart, Al-Arabiya Real Estate Co KSC ranks #1291 out of 1713 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Al-Arabiya Real Estate Co KSC has a GF Score™ of 4/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Al-Arabiya Real Estate Co KSC's Return-on-Tangible-Equity compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Al-Arabiya Real Estate Co KSC ranks #1291 out of 1713 companies for Return-on-Tangible-Equity. This places Al-Arabiya Real Estate Co KSC in the lower half of its industry. The industry median Return-on-Tangible-Equity is 4.26. 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 Real Estate company?
The median Return-on-Tangible-Equity among Real Estate companies is 4.26, based on 1,713 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. 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 Al-Arabiya Real Estate Co KSC and its competitors. For the Real Estate industry, the median Return-on-Tangible-Equity is 4.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al-Arabiya Real Estate Co KSC's current Return-on-Tangible-Equity is -2.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al-Arabiya Real Estate Co KSC stock overvalued right now?
Based on GuruFocus' analysis, Al-Arabiya Real Estate Co KSC (KUW:ARABREC) is currently considered Significantly Overvalued. The stock's GF Value™ is KWD0.06, compared to a current price of KWD0.18 — trading 198.3% above its estimated fair value. The current Return-on-Tangible-Equity is -2.43%. Al-Arabiya Real Estate Co KSC's overall GF Score™ is 4/100 with 6 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 Al-Arabiya Real Estate Co KSC (KUW:ARABREC), the current Return-on-Tangible-Equity is -2.43% 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 Al-Arabiya Real Estate Co KSC (KUW:ARABREC) Overvalued in 2026?
Based on GuruFocus' analysis, Al-Arabiya Real Estate Co KSC stock appears to be overvalued.
The current stock price of KWD0.18 is trading 198.3% above its estimated GF Value™ of KWD0.06.
GuruFocus considers Al-Arabiya Real Estate Co KSC to be Significantly Overvalued.
Key valuation signals for KUW:ARABREC:
Return-on-Tangible-Equity: -2.43%
GF Value™: KWD0.06 vs. price of KWD0.18 (198.3% above fair value)
No single metric tells the full story. See the KUW:ARABREC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al-Arabiya Real Estate Co KSC Business Description
Al-Arabiya Real Estate Co KSC is a Kuwait based company involved in the construction, contracting, developing and managing the activities of residential buildings, hotels, and commercial centres within the private and public sector. It operates in three segments. Real estate segment involves activities related to real estate investment properties. Hotels segment, which is the key revenue generator, involves establishment, acquiring and managing hotels. Investment segment involves investing in shares and share capital of the companies. Geographically, it generates revenue from Kuwait being the highest revenue driver, United Arab Emirates, and Egypt.
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