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Saudi Azm for Communication and Information Technology Co (SAU:7211) 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 Azm for Communication and Information Technology Co Return-on-Tangible-Equity Related Terms
Saudi Azm for Communication and Information Technology 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.
Saudi Azm for Communication and Information Technology Co Return-on-Tangible-Equity Chart
Saudi Azm for Communication and Information Technology Co Annual Data
Trend
Jun21
Jun22
Jun23
Jun24
Jun25
Return-on-Tangible-Equity
48.16
45.69
38.80
36.47
34.25
Saudi Azm for Communication and Information Technology Co Quarterly Data
* 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 Azm for Communication and Information Technology Co Return-on-Tangible-Equity vs Software Industry
* 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 32.97% mean?
Saudi Azm for Communication and Information Technology Co (SAU:7211) has a Return-on-Tangible-Equity of 32.97% 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 Azm for Communication and Information Technology Co and its competitors. This is 15% below median its historical median of 38.80. Over the past decade, Saudi Azm for Communication and Information Technology Co's Return-on-Tangible-Equity has ranged from 34.25 to 48.16. According to the industry distribution chart, Saudi Azm for Communication and Information Technology Co ranks #548 out of 2487 companies in the Software industry, placing it in the top 22%.
Is Saudi Azm for Communication and Information Technology Co's Return-on-Tangible-Equity too high?
Saudi Azm for Communication and Information Technology Co's current Return-on-Tangible-Equity of 32.97% is 15% below median its 10-year median of 38.80. Over the past 10 years, this metric has ranged from a low of 34.25 to a high of 48.16. The Software industry median Return-on-Tangible-Equity is 9.03. Saudi Azm for Communication and Information Technology Co's value of 32.97% is 265.1% above this industry median. Based on the distribution chart, Saudi Azm for Communication and Information Technology Co ranks #548 out of 2487 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Saudi Azm for Communication and Information Technology Co has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Saudi Azm for Communication and Information Technology Co's Return-on-Tangible-Equity compare to QH and SHOP?
According to the Software industry distribution chart, Saudi Azm for Communication and Information Technology Co ranks #548 out of 2487 companies for Return-on-Tangible-Equity. This places Saudi Azm for Communication and Information Technology Co in the top 22% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.03. Saudi Azm for Communication and Information Technology Co's value of 32.97% is 265.1% above this benchmark. Historically, Saudi Azm for Communication and Information Technology Co's own Return-on-Tangible-Equity has ranged from 34.25 to 48.16 over the past decade. While the company's 10-year median is 38.80 vs. the industry median of 9.03, Saudi Azm for Communication and Information Technology 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 9.03, based on 2,487 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 Azm for Communication and Information Technology Co's current Return-on-Tangible-Equity of 32.97% is 265.1% 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 Azm for Communication and Information Technology Co and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Azm for Communication and Information Technology Co's current Return-on-Tangible-Equity is 32.97%, which is 15% below median its own 10-year median of 38.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Azm for Communication and Information Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Azm for Communication and Information Technology Co (SAU:7211) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼29.41, compared to a current price of ﷼22.20 — trading 24.5% below its estimated fair value. The current Return-on-Tangible-Equity is 32.97%, which is 15% below median its 10-year median of 38.80 and 265.1% above the Software industry median of 9.03. Saudi Azm for Communication and Information Technology Co's overall GF Score™ is 55/100 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 Saudi Azm for Communication and Information Technology Co (SAU:7211), the current Return-on-Tangible-Equity is 32.97% 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 Azm for Communication and Information Technology Co (SAU:7211) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Azm for Communication and Information Technology Co stock appears to be undervalued.
The current stock price of ﷼22.20 is trading 24.5% below its estimated GF Value™ of ﷼29.41.
GuruFocus considers Saudi Azm for Communication and Information Technology Co to be Modestly Undervalued.
Key valuation signals for SAU:7211:
Return-on-Tangible-Equity: 32.97% (15% below median its 10-year median of 38.80)
GF Value™: ﷼29.41 vs. price of ﷼22.20 (24.5% below fair value)
Industry Position: 265.1% above the Software median (#548 of 2487)
No single metric tells the full story. See the SAU:7211 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Azm for Communication and Information Technology Co aims at providing solutions to projects with qualitative impact in the fields of information technology and executive consulting. The company is principally engaged in the designing and programming special software, application development, providing management and control services of communication sale of wire and wireless equipment and devices, design User Experience and customer journey, repair and maintenance of personal and portable computers, providing senior management consulting services and information networks and research and development on technology.
55GF Score
Get the complete analysis for SAU:7211
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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