Cherry Trading Co (SAU:4265) Return-on-Tangible-Equity: 12.93% (As of Dec. 2025) — Near Median

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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:4265 Cherry Trading Co SAU:4265
13 GF Score
Price ﷼23.26
! 4 Warning Signs
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What is Cherry Trading Co Return-on-Tangible-Equity?

Cherry Trading Co SAU:4265 +0.26% 13 Return-on-Tangible-Equity is 12.93% as of Dec. 2025, which is 3% above its 10-year median of 12.60. GuruFocus rates SAU:4265 with a GF Score™ of 13/100. The stock has 4 warning signs investors should review. Among 1,010 Business Services companies, Cherry Trading Co ranks better than 55.15% 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. Cherry Trading Co's annualized net income for the quarter that ended in Dec. 2025 was ﷼71.0 Mil. Cherry Trading Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was ﷼549.5 Mil. Therefore, Cherry Trading Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 12.93%.

The historical rank and industry rank for Cherry Trading Co's Return-on-Tangible-Equity or its related term are showing as below:

SAU:4265' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.26   Med: 12.6   Max: 12.93
Current: 12.93

During the past 2 years, Cherry Trading Co's highest Return-on-Tangible-Equity was 12.93%. The lowest was 12.26%. And the median was 12.60%.

SAU:4265's Return-on-Tangible-Equity is ranked better than
55.15% of 1010 companies
in the Business Services industry
Industry Median: 11 vs SAU:4265: 12.93

Cherry Trading Co  (SAU:4265) 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.


Cherry Trading Co Return-on-Tangible-Equity Related Terms


Cherry Trading Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Cherry Trading 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.

Cherry Trading Co Return-on-Tangible-Equity Chart

Cherry Trading Co Annual Data
Trend Dec24 Dec25
Return-on-Tangible-Equity
12.26 12.93

Cherry Trading Co Semi-Annual Data
Dec24 Dec25
Return-on-Tangible-Equity 12.26 12.93

SAU:4265 vs URI, SUNB, AER: Return-on-Tangible-Equity Comparison

For the Rental & Leasing Services subindustry, Cherry Trading 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.


Cherry Trading Co Return-on-Tangible-Equity vs Business Services Industry

For the Business Services industry and Industrials sector, Cherry Trading Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Cherry Trading Co's Return-on-Tangible-Equity falls into.


SAU:4265
13GF Score
Cherry Trading Co SAU:4265
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
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Cherry Trading Co Return-on-Tangible-Equity Calculation

Cherry Trading 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 )
=71.036/( (514.464+584.588 )/ 2 )
=71.036/549.526
=12.93 %

Cherry Trading Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2025 )  (Q: Dec. 2024 )(Q: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2025 )  (Q: Dec. 2024 )(Q: Dec. 2025 )
=71.036/( (514.464+584.588)/ 2 )
=71.036/549.526
=12.93 %

* 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 one times the annual (Dec. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 12.93% mean?
Cherry Trading Co (SAU:4265) has a Return-on-Tangible-Equity of 12.93% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Cherry Trading Co and its competitors. This is near median its historical median of 12.60. Over the past decade, Cherry Trading Co's Return-on-Tangible-Equity has ranged from 12.26 to 12.93. According to the industry distribution chart, Cherry Trading Co ranks #453 out of 1010 companies in the Business Services industry, placing it in the top 44.9%.
Is Cherry Trading Co's Return-on-Tangible-Equity too high?
Cherry Trading Co's current Return-on-Tangible-Equity of 12.93% is near median its 10-year median of 12.60. Over the past 10 years, this metric has ranged from a low of 12.26 to a high of 12.93. The Business Services industry median Return-on-Tangible-Equity is 11.00. Cherry Trading Co's value of 12.93% is 17.5% above this industry median. Based on the distribution chart, Cherry Trading Co ranks #453 out of 1010 companies in the Business Services industry, which is above the industry midpoint. Overall, Cherry Trading Co has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Cherry Trading Co's Return-on-Tangible-Equity compare to URI and SUNB?
According to the Business Services industry distribution chart, Cherry Trading Co ranks #453 out of 1010 companies for Return-on-Tangible-Equity. This puts Cherry Trading Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.00. Cherry Trading Co's value of 12.93% is 17.5% above this benchmark. Historically, Cherry Trading Co's own Return-on-Tangible-Equity has ranged from 12.26 to 12.93 over the past decade. While the company's 10-year median is 12.60 vs. the industry median of 11.00, Cherry Trading 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 Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 11.00, based on 1,010 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. Cherry Trading Co's current Return-on-Tangible-Equity of 12.93% is 17.5% 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 Cherry Trading Co and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 11.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cherry Trading Co's current Return-on-Tangible-Equity is 12.93%, which is near median its own 10-year median of 12.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cherry Trading Co stock overvalued right now?
Cherry Trading Co (SAU:4265) has a current Return-on-Tangible-Equity of 12.93%. The current Return-on-Tangible-Equity is 12.93%, which is near median its 10-year median of 12.60 and 17.5% above the Business Services industry median of 11.00. Cherry Trading Co's overall GF Score™ is 13/100 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 Cherry Trading Co (SAU:4265), the current Return-on-Tangible-Equity is 12.93% as of Dec. 2025. 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.

Cherry Trading Co Business Description

Address 2623 Dammam Branch Road, Ghirnatah district, Riyadh, SAU, 13242-8025
Cherry Trading Co is engaged in wholesale and retail trade of new and used private cars, car service and maintenance center activities, public fare and school transportation, real estate management for commission, and passenger car rental. The company also provides crane rental with operator, rental and operational leasing of passenger cars, trucks, utility trailers, recreational vehicles, buses, electronic car rental, machine tools, public taxi, educational transport, light goods transport, and wholesale and retail sale of used specialized passenger vehicles, including ambulances, minibuses, and jeeps. The group operates through three segments: Long-Term Lease, Short-Term Rental, and Sales of Motor Vehicles, with the Long-Term Lease segment generating the maximum revenue.
13GF Score

Get the complete analysis for SAU:4265

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

﷼23.26
Price