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SAU:7202's Return-on-Tangible-Equity is ranked better than 70.46% of 325
companies
in the Telecommunication Services industry
Industry Median: 13.99
vs SAU:7202: 42.10
Arabian Internet and Communications Services Co (SAU:7202) 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 Internet and Communications Services Co Return-on-Tangible-Equity Related Terms
Arabian Internet and Communications Services Co 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.
Arabian Internet and Communications Services Co Return-on-Tangible-Equity Chart
Arabian Internet and Communications Services Co Annual Data
SAU:7202 vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Arabian Internet and Communications Services 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 Internet and Communications Services Co Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Arabian Internet and Communications Services Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arabian Internet and Communications Services 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 38.39% mean?
Arabian Internet and Communications Services Co (SAU:7202) has a Return-on-Tangible-Equity of 38.39% 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 Internet and Communications Services Co and its competitors. This is 13% below median its historical median of 44.14. Over the past decade, Arabian Internet and Communications Services Co's Return-on-Tangible-Equity has ranged from 38.31 to 51.95. According to the industry distribution chart, Arabian Internet and Communications Services Co ranks #96 out of 325 companies in the Telecommunication Services industry, placing it in the top 29.5%.
Is Arabian Internet and Communications Services Co's Return-on-Tangible-Equity too high?
Arabian Internet and Communications Services Co's current Return-on-Tangible-Equity of 38.39% is 13% below median its 10-year median of 44.14. Over the past 10 years, this metric has ranged from a low of 38.31 to a high of 51.95. The Telecommunication Services industry median Return-on-Tangible-Equity is 13.99. Arabian Internet and Communications Services Co's value of 38.39% is 174.4% above this industry median. Based on the distribution chart, Arabian Internet and Communications Services Co ranks #96 out of 325 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Arabian Internet and Communications Services Co has a GF Score™ of 93/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arabian Internet and Communications Services Co's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Arabian Internet and Communications Services Co ranks #96 out of 325 companies for Return-on-Tangible-Equity. This puts Arabian Internet and Communications Services Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 13.99. Arabian Internet and Communications Services Co's value of 38.39% is 174.4% above this benchmark. Historically, Arabian Internet and Communications Services Co's own Return-on-Tangible-Equity has ranged from 38.31 to 51.95 over the past decade. While the company's 10-year median is 44.14 vs. the industry median of 13.99, Arabian Internet and Communications Services 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 Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 13.99, based on 325 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 Internet and Communications Services Co's current Return-on-Tangible-Equity of 38.39% is 174.4% 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 Arabian Internet and Communications Services Co and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 13.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Internet and Communications Services Co's current Return-on-Tangible-Equity is 38.39%, which is 13% below median its own 10-year median of 44.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Internet and Communications Services Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Internet and Communications Services Co (SAU:7202) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼332.24, compared to a current price of ﷼204.10 — trading 38.6% below its estimated fair value. The current Return-on-Tangible-Equity is 38.39%, which is 13% below median its 10-year median of 44.14 and 174.4% above the Telecommunication Services industry median of 13.99. Arabian Internet and Communications Services Co's overall GF Score™ is 93/100 with 2 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 Internet and Communications Services Co (SAU:7202), the current Return-on-Tangible-Equity is 38.39% 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 Internet and Communications Services Co (SAU:7202) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Internet and Communications Services Co stock appears to be undervalued.
The current stock price of ﷼204.10 is trading 38.6% below its estimated GF Value™ of ﷼332.24.
GuruFocus considers Arabian Internet and Communications Services Co to be Significantly Undervalued.
Key valuation signals for SAU:7202:
Return-on-Tangible-Equity: 38.39% (13% below median its 10-year median of 44.14)
GF Value™: ﷼332.24 vs. price of ﷼204.10 (38.6% below fair value)
Industry Position: 174.4% above the Telecommunication Services median (#96 of 325)
No single metric tells the full story. See the SAU:7202 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Internet and Communications Services Co Business Description
Arabian Internet and Communications Services Co is an information and communication company. The company operates in three segments namely, Solutions by STC, GIZA Group, and Contact Center Company. The company's revenue mainly comprises of Solutions by STC segment. The services provided by the company are Core ICT Services, IT Managed and Operational Services, and Digital Services.
93GF Score
Get the complete analysis for SAU:7202
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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