Al-Babtain Power & Telecommunication Co (SAU:2320) Return-on-Tangible-Equity: 41.73% (As of Mar. 2026) — 200% 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:2320 Al-Babtain Power & Telecommunication Co SAU:2320
70 GF Score
Price ﷼58.85
GF Value ﷼47.89
Valuation Modestly Overvalued
! 1 Warning Sign
View Full Analysis

What is Al-Babtain Power & Telecommunication Co Return-on-Tangible-Equity?

Al-Babtain Power & Telecommunication Co SAU:2320 70 Return-on-Tangible-Equity is 41.73% as of Mar. 2026, which is 200% above its 10-year median of 13.91. GuruFocus rates SAU:2320 with a GF Score™ of 70/100 and a GF Value™ of ﷼47.89 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 1,710 Construction companies, Al-Babtain Power & Telecommunication Co ranks better than 86.96% 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. Al-Babtain Power & Telecommunication Co's annualized net income for the quarter that ended in Mar. 2026 was ﷼573 Mil. Al-Babtain Power & Telecommunication Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ﷼1,373 Mil. Therefore, Al-Babtain Power & Telecommunication Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 41.73%.

The historical rank and industry rank for Al-Babtain Power & Telecommunication Co's Return-on-Tangible-Equity or its related term are showing as below:

SAU:2320' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.48   Med: 13.91   Max: 40.75
Current: 40.75

During the past 13 years, Al-Babtain Power & Telecommunication Co's highest Return-on-Tangible-Equity was 40.75%. The lowest was 6.48%. And the median was 13.91%.

SAU:2320's Return-on-Tangible-Equity is ranked better than
86.96% of 1710 companies
in the Construction industry
Industry Median: 8.21 vs SAU:2320: 40.75

Al-Babtain Power & Telecommunication Co  (SAU:2320) 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-Babtain Power & Telecommunication Co Return-on-Tangible-Equity Related Terms


Al-Babtain Power & Telecommunication Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Al-Babtain Power & Telecommunication 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.

Al-Babtain Power & Telecommunication Co Return-on-Tangible-Equity Chart

Al-Babtain Power & Telecommunication Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.67 6.48 16.50 27.01 38.16

Al-Babtain Power & Telecommunication Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Return-on-Tangible-Equity 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 32.91 34.69 42.22 44.03 41.73

SAU:2320 vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison

For the Engineering & Construction subindustry, Al-Babtain Power & Telecommunication 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.


Al-Babtain Power & Telecommunication Co Return-on-Tangible-Equity vs Construction Industry

For the Construction industry and Industrials sector, Al-Babtain Power & Telecommunication Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Al-Babtain Power & Telecommunication Co's Return-on-Tangible-Equity falls into.


SAU:2320
70GF Score
Al-Babtain Power & Telecommunication Co SAU:2320
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Al-Babtain Power & Telecommunication Co Return-on-Tangible-Equity Calculation

Al-Babtain Power & Telecommunication Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=453.059/( (1068.383+1306.291 )/ 2 )
=453.059/1187.337
=38.16 %

Al-Babtain Power & Telecommunication Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=573.036/( (1306.291+1439.926)/ 2 )
=573.036/1373.1085
=41.73 %

* 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 41.73% mean?
Al-Babtain Power & Telecommunication Co (SAU:2320) has a Return-on-Tangible-Equity of 41.73% 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-Babtain Power & Telecommunication Co and its competitors. This is 200% above median its historical median of 13.91. Over the past decade, Al-Babtain Power & Telecommunication Co's Return-on-Tangible-Equity has ranged from 6.48 to 40.75. According to the industry distribution chart, Al-Babtain Power & Telecommunication Co ranks #223 out of 1710 companies in the Construction industry, placing it in the top 13%.
Is Al-Babtain Power & Telecommunication Co's Return-on-Tangible-Equity too high?
Al-Babtain Power & Telecommunication Co's current Return-on-Tangible-Equity of 41.73% is 200% above median its 10-year median of 13.91. Over the past 10 years, this metric has ranged from a low of 6.48 to a high of 40.75. The Construction industry median Return-on-Tangible-Equity is 8.21. Al-Babtain Power & Telecommunication Co's value of 41.73% is 408.3% above this industry median. Based on the distribution chart, Al-Babtain Power & Telecommunication Co ranks #223 out of 1710 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Al-Babtain Power & Telecommunication Co has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Al-Babtain Power & Telecommunication Co's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Al-Babtain Power & Telecommunication Co ranks #223 out of 1710 companies for Return-on-Tangible-Equity. This places Al-Babtain Power & Telecommunication Co in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.21. Al-Babtain Power & Telecommunication Co's value of 41.73% is 408.3% above this benchmark. Historically, Al-Babtain Power & Telecommunication Co's own Return-on-Tangible-Equity has ranged from 6.48 to 40.75 over the past decade. While the company's 10-year median is 13.91 vs. the industry median of 8.21, Al-Babtain Power & Telecommunication 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.21, based on 1,710 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. Al-Babtain Power & Telecommunication Co's current Return-on-Tangible-Equity of 41.73% is 408.3% 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 Al-Babtain Power & Telecommunication Co and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al-Babtain Power & Telecommunication Co's current Return-on-Tangible-Equity is 41.73%, which is 200% above median its own 10-year median of 13.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al-Babtain Power & Telecommunication Co stock overvalued right now?
Based on GuruFocus' analysis, Al-Babtain Power & Telecommunication Co (SAU:2320) is currently considered Modestly Overvalued. The stock's GF Value™ is ﷼47.89, compared to a current price of ﷼58.85 — trading 22.9% above its estimated fair value. The current Return-on-Tangible-Equity is 41.73%, which is 200% above median its 10-year median of 13.91 and 408.3% above the Construction industry median of 8.21. Al-Babtain Power & Telecommunication Co's overall GF Score™ is 70/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Al-Babtain Power & Telecommunication Co (SAU:2320), the current Return-on-Tangible-Equity is 41.73% 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-Babtain Power & Telecommunication Co (SAU:2320) Overvalued in 2026?

Based on GuruFocus' analysis, Al-Babtain Power & Telecommunication Co stock appears to be overvalued. The current stock price of ﷼58.85 is trading 22.9% above its estimated GF Value™ of ﷼47.89. GuruFocus considers Al-Babtain Power & Telecommunication Co to be Modestly Overvalued.

Key valuation signals for SAU:2320:

  • Return-on-Tangible-Equity: 41.73% (200% above median its 10-year median of 13.91)
  • GF Value™: ﷼47.89 vs. price of ﷼58.85 (22.9% above fair value)
  • GF Score™: 70/100 with 1 warning sign
  • Industry Position: 408.3% above the Construction median (#223 of 1710)

No single metric tells the full story. See the SAU:2320 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Al-Babtain Power & Telecommunication Co Business Description

Address P.O. Box 88373, Riyadh, SAU, 11662
Al-Babtain Power & Telecommunication Co designs and manufactures poles, masts, and lighting systems for streets, stadiums, and public spaces, as well as towers and poles for power transmission and telecommunications. The company also produces and markets decorative poles and LED lighting, and provides installation, operation, and maintenance services for telecommunications systems, computer networks, and industrial equipment. In addition, it manufactures metal components such as solar photovoltaic tracking systems and fixed structures, supports wind energy and power generation projects, and undertakes electrical and mechanical works, communication system design and installation, as well as contracting and oil and gas field services.
70GF Score

Get the complete analysis for SAU:2320

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

﷼58.85
Price
﷼47.89
GF Value