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Arabian Drilling CoSAU:2381 -5.73%59 Return-on-Tangible-Equity is 0.50% as of Mar. 2026, which is 92% below its 10-year median of 6.54. GuruFocus rates SAU:2381 with a GF Score™ of 59/100 and a GF Value™ of ﷼100.70 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 943 Oil & Gas companies, Arabian Drilling Co ranks worse than 70.1% 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 Drilling Co's annualized net income for the quarter that ended in Mar. 2026 was ﷼28 Mil. Arabian Drilling Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ﷼5,686 Mil. Therefore, Arabian Drilling Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 0.50%.
The historical rank and industry rank for Arabian Drilling Co's Return-on-Tangible-Equity or its related term are showing as below:
SAU:2381'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2.47 Med: 6.54 Max: 11.41
Current: -2.47
During the past 5 years, Arabian Drilling Co's highest Return-on-Tangible-Equity was 11.41%. The lowest was -2.47%. And the median was 6.54%.
SAU:2381's Return-on-Tangible-Equity is ranked worse than 70.1% of 943
companies
in the Oil & Gas industry
Industry Median: 6.74
vs SAU:2381: -2.47
Arabian Drilling Co (SAU:2381) 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 Drilling Co Return-on-Tangible-Equity Related Terms
Arabian Drilling Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Arabian Drilling 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.
Arabian Drilling Co Return-on-Tangible-Equity Chart
SAU:2381 vs NE, RIG, VAL: Return-on-Tangible-Equity Comparison
For the Oil & Gas Drilling subindustry, Arabian Drilling 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 Drilling Co Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Arabian Drilling Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arabian Drilling 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 0.50% mean?
Arabian Drilling Co (SAU:2381) has a Return-on-Tangible-Equity of 0.50% 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 Drilling Co and its competitors. This is 92% below median its historical median of 6.54. According to the industry distribution chart, Arabian Drilling Co ranks #661 out of 943 companies in the Oil & Gas industry, placing it in the top 70.1%.
Is Arabian Drilling Co's Return-on-Tangible-Equity too high?
Arabian Drilling Co's current Return-on-Tangible-Equity of 0.50% is 92% below median its 10-year median of 6.54. The Oil & Gas industry median Return-on-Tangible-Equity is 6.74. Arabian Drilling Co's value of 0.50% is 92.6% below this industry median. Based on the distribution chart, Arabian Drilling Co ranks #661 out of 943 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Arabian Drilling 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 Arabian Drilling Co's Return-on-Tangible-Equity compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Arabian Drilling Co ranks #661 out of 943 companies for Return-on-Tangible-Equity. This places Arabian Drilling Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.74. Arabian Drilling Co's value of 0.50% is 92.6% below this benchmark. While the company's 10-year median is 6.54 vs. the industry median of 6.74, Arabian Drilling Co has consistently been below 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 an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.74, based on 943 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 Drilling Co's current Return-on-Tangible-Equity of 0.50% is 92.6% below 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 Drilling Co and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Drilling Co's current Return-on-Tangible-Equity is 0.50%, which is 92% below median its own 10-year median of 6.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Drilling Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Drilling Co (SAU:2381) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼100.70, compared to a current price of ﷼81.50 — trading 19.1% below its estimated fair value. The current Return-on-Tangible-Equity is 0.50%, which is 92% below median its 10-year median of 6.54 and 92.6% below the Oil & Gas industry median of 6.74. Arabian Drilling Co's overall GF Score™ is 59/100 with 3 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 Drilling Co (SAU:2381), the current Return-on-Tangible-Equity is 0.50% 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 Drilling Co (SAU:2381) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Drilling Co stock appears to be undervalued.
The current stock price of ﷼81.50 is trading 19.1% below its estimated GF Value™ of ﷼100.70.
GuruFocus considers Arabian Drilling Co to be Modestly Undervalued.
Key valuation signals for SAU:2381:
Return-on-Tangible-Equity: 0.50% (92% below median its 10-year median of 6.54)
GF Value™: ﷼100.70 vs. price of ﷼81.50 (19.1% below fair value)
Industry Position: 92.6% below the Oil & Gas median (#661 of 943)
No single metric tells the full story. See the SAU:2381 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Drilling Co is an onshore and offshore gas and oil rig drilling company in Saudi Arabia. It is principally engaged in the drilling of oil and natural gas wells, operations, maintenance and hauling of rigs, and related activities. The operating segment of the company Provision of drilling and related services through land rigs and the Provision of drilling and related services through off-shore rigs.
59GF Score
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