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Saudi Cement CoSAU:3030 -0.40%81 Return-on-Tangible-Equity is 17.80% as of Mar. 2026, which is 7% above its 10-year median of 16.66. GuruFocus rates SAU:3030 with a GF Score™ of 81/100 and a GF Value™ of ﷼44.86 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 398 Building Materials companies, Saudi Cement Co ranks better than 81.91% 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. Saudi Cement Co's annualized net income for the quarter that ended in Mar. 2026 was ﷼401 Mil. Saudi Cement Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ﷼2,251 Mil. Therefore, Saudi Cement Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 17.80%.
The historical rank and industry rank for Saudi Cement Co's Return-on-Tangible-Equity or its related term are showing as below:
SAU:3030'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.14 Med: 16.66 Max: 28.38
Current: 16.19
During the past 13 years, Saudi Cement Co's highest Return-on-Tangible-Equity was 28.38%. The lowest was 13.14%. And the median was 16.66%.
SAU:3030's Return-on-Tangible-Equity is ranked better than 81.91% of 398
companies
in the Building Materials industry
Industry Median: 5.055
vs SAU:3030: 16.19
Saudi Cement Co (SAU:3030) 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.
Saudi Cement Co Return-on-Tangible-Equity Related Terms
Saudi Cement Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Saudi 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.
SAU:3030 vs CRH, VMC, MLM: Return-on-Tangible-Equity Comparison
For the Building Materials subindustry, Saudi 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.
Saudi Cement Co Return-on-Tangible-Equity vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Saudi Cement Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Saudi 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 17.80% mean?
Saudi Cement Co (SAU:3030) has a Return-on-Tangible-Equity of 17.80% 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 Saudi Cement Co and its competitors. This is near median its historical median of 16.66. Over the past decade, Saudi Cement Co's Return-on-Tangible-Equity has ranged from 13.14 to 28.38. According to the industry distribution chart, Saudi Cement Co ranks #72 out of 398 companies in the Building Materials industry, placing it in the top 18.1%.
Is Saudi Cement Co's Return-on-Tangible-Equity too high?
Saudi Cement Co's current Return-on-Tangible-Equity of 17.80% is near median its 10-year median of 16.66. Over the past 10 years, this metric has ranged from a low of 13.14 to a high of 28.38. The Building Materials industry median Return-on-Tangible-Equity is 5.06. Saudi Cement Co's value of 17.80% is 252.1% above this industry median. Based on the distribution chart, Saudi Cement Co ranks #72 out of 398 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Saudi Cement Co has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Saudi Cement Co's Return-on-Tangible-Equity compare to CRH and VMC?
According to the Building Materials industry distribution chart, Saudi Cement Co ranks #72 out of 398 companies for Return-on-Tangible-Equity. This places Saudi Cement Co in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.06. Saudi Cement Co's value of 17.80% is 252.1% above this benchmark. Historically, Saudi Cement Co's own Return-on-Tangible-Equity has ranged from 13.14 to 28.38 over the past decade. While the company's 10-year median is 16.66 vs. the industry median of 5.06, Saudi 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 398 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. Saudi Cement Co's current Return-on-Tangible-Equity of 17.80% is 252.1% 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-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 Saudi 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. Saudi Cement Co's current Return-on-Tangible-Equity is 17.80%, which is near median its own 10-year median of 16.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Cement Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Cement Co (SAU:3030) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼44.86, compared to a current price of ﷼29.56 — trading 34.1% below its estimated fair value. The current Return-on-Tangible-Equity is 17.80%, which is near median its 10-year median of 16.66 and 252.1% above the Building Materials industry median of 5.06. Saudi Cement Co's overall GF Score™ is 81/100 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 Saudi Cement Co (SAU:3030), the current Return-on-Tangible-Equity is 17.80% 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 Saudi Cement Co (SAU:3030) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Cement Co stock appears to be undervalued.
The current stock price of ﷼29.56 is trading 34.1% below its estimated GF Value™ of ﷼44.86.
GuruFocus considers Saudi Cement Co to be Significantly Undervalued.
Key valuation signals for SAU:3030:
Return-on-Tangible-Equity: 17.80% (near median its 10-year median of 16.66)
GF Value™: ﷼44.86 vs. price of ﷼29.56 (34.1% below fair value)
Industry Position: 252.1% above the Building Materials median (#72 of 398)
No single metric tells the full story. See the SAU:3030 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Cement Co is engaged in manufacturing and selling cement and its related products. Its products are Cement Clinker, Sulfate Resistant Cement, and Ordinary Portland Cement used for highways, bridges, airports, seaports, railways, metros, and numerous housing and commercial projects. It operates in two geographic segments: the Kingdom of Saudi Arabia and the Kingdom of Bahrain. It generates the majority of its revenue from the Kingdom of Saudi Arabia.
81GF Score
Get the complete analysis for SAU:3030
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