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Riyadh Steel CoSAU:9588 22 Return-on-Tangible-Equity is 8.02% as of Dec. 2025, which is 7% above its 10-year median of 7.47. GuruFocus rates SAU:9588 with a GF Score™ of 22/100. The stock has 3 warning signs investors should review. Among 616 Steel companies, Riyadh Steel Co ranks better than 64.77% 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. Riyadh Steel Co's annualized net income for the quarter that ended in Dec. 2025 was ﷼6.5 Mil. Riyadh Steel Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was ﷼81.4 Mil. Therefore, Riyadh Steel Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 8.02%.
The historical rank and industry rank for Riyadh Steel Co's Return-on-Tangible-Equity or its related term are showing as below:
SAU:9588'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.68 Med: 7.47 Max: 16.22
Current: 7.18
During the past 5 years, Riyadh Steel Co's highest Return-on-Tangible-Equity was 16.22%. The lowest was 2.68%. And the median was 7.47%.
SAU:9588's Return-on-Tangible-Equity is ranked better than 64.77% of 616
companies
in the Steel industry
Industry Median: 4.13
vs SAU:9588: 7.18
Riyadh Steel Co (SAU:9588) 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.
Riyadh Steel Co Return-on-Tangible-Equity Related Terms
Riyadh Steel Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Riyadh Steel 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:9588 vs NUE, STLD, RS: Return-on-Tangible-Equity Comparison
For the Steel subindustry, Riyadh Steel 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.
Riyadh Steel Co Return-on-Tangible-Equity vs Steel Industry
For the Steel industry and Basic Materials sector, Riyadh Steel Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Riyadh Steel 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 two times the semi-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 8.02% mean?
Riyadh Steel Co (SAU:9588) has a Return-on-Tangible-Equity of 8.02% 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 Riyadh Steel Co and its competitors. This is near median its historical median of 7.47. Over the past decade, Riyadh Steel Co's Return-on-Tangible-Equity has ranged from 2.68 to 16.22. According to the industry distribution chart, Riyadh Steel Co ranks #217 out of 616 companies in the Steel industry, placing it in the top 35.2%.
Is Riyadh Steel Co's Return-on-Tangible-Equity too high?
Riyadh Steel Co's current Return-on-Tangible-Equity of 8.02% is near median its 10-year median of 7.47. Over the past 10 years, this metric has ranged from a low of 2.68 to a high of 16.22. The Steel industry median Return-on-Tangible-Equity is 4.13. Riyadh Steel Co's value of 8.02% is 94.2% above this industry median. Based on the distribution chart, Riyadh Steel Co ranks #217 out of 616 companies in the Steel industry, which is above the industry midpoint. Overall, Riyadh Steel Co has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Riyadh Steel Co's Return-on-Tangible-Equity compare to NUE and STLD?
According to the Steel industry distribution chart, Riyadh Steel Co ranks #217 out of 616 companies for Return-on-Tangible-Equity. This puts Riyadh Steel Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.13. Riyadh Steel Co's value of 8.02% is 94.2% above this benchmark. Historically, Riyadh Steel Co's own Return-on-Tangible-Equity has ranged from 2.68 to 16.22 over the past decade. While the company's 10-year median is 7.47 vs. the industry median of 4.13, Riyadh Steel 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 Steel company?
The median Return-on-Tangible-Equity among Steel companies is 4.13, based on 616 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. Riyadh Steel Co's current Return-on-Tangible-Equity of 8.02% is 94.2% 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 Riyadh Steel Co and its competitors. For the Steel industry, the median Return-on-Tangible-Equity is 4.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Riyadh Steel Co's current Return-on-Tangible-Equity is 8.02%, which is near median its own 10-year median of 7.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Riyadh Steel Co stock overvalued right now?
Riyadh Steel Co (SAU:9588) has a current Return-on-Tangible-Equity of 8.02%. The current Return-on-Tangible-Equity is 8.02%, which is near median its 10-year median of 7.47 and 94.2% above the Steel industry median of 4.13. Riyadh Steel Co's overall GF Score™ is 22/100 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 Riyadh Steel Co (SAU:9588), the current Return-on-Tangible-Equity is 8.02% 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.
Riyadh Steel Co Group is a steel manufacturer principally engaged in the production of sheets, plates, strip coils, rods, skewers, corners, wires, and sections. The Company provides steel scrap, billets, and ASTM A36 standard flat and angle bars, and generates revenue from the sale of angled and flat bars and other finished goods, billets, and scrap iron and raw materials. It mainly operates in the Kingdom of Saudi Arabia, which generates the majority of its revenue, and also has a presence in other GCC countries.
22GF Score
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