ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Islamic Arab Insurance Co's annualizedNet Income for the quarter that ended in Mar. 2026 was د.إ43.5 Mil.
Islamic Arab Insurance Co's average Total Assets over the quarter that ended in Mar. 2026 was د.إ3,230.5 Mil. Therefore, Islamic Arab Insurance Co's annualized ROA % for the quarter that ended in Mar. 2026 was 1.35%.
The historical rank and industry rank for Islamic Arab Insurance Co's ROA % or its related term are showing as below:
DFM:SALAMA'
s ROA % Range Over the Past 10 Years
Min: -5.45 Med: 0.45 Max: 3.5
Current: 0.49
During the past 13 years, Islamic Arab Insurance Co's highest ROA % was 3.50%. The lowest was -5.45%. And the median was 0.45%.
DFM:SALAMA's ROA % is ranked worse than 83.2% of 506
companies
in the Insurance industry
Industry Median: 2.7
vs DFM:SALAMA: 0.49
Islamic Arab Insurance Co (DFM:SALAMA) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Insurance - Diversified subindustry, Islamic Arab Insurance Co's ROA %, along with its competitors' market caps and ROA % 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.
Islamic Arab Insurance Co ROA % vs Insurance Industry
For the Insurance industry and Financial Services sector, Islamic Arab Insurance Co's ROA % distribution charts can be found below:
* The bar in red indicates where Islamic Arab Insurance Co's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Islamic Arab Insurance Co (DFM:SALAMA) has a ROA % of 1.35% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Islamic Arab Insurance Co and its competitors. This is 200% above median its historical median of 0.45. According to the industry distribution chart, Islamic Arab Insurance Co ranks #421 out of 506 companies in the Insurance industry, placing it in the top 83.2%.
Is Islamic Arab Insurance Co's ROA % too high?
Islamic Arab Insurance Co's current ROA % of 1.35% is 200% above median its 10-year median of 0.45. The Insurance industry median ROA % is 2.70. Islamic Arab Insurance Co's value of 1.35% is 50% below this industry median. Based on the distribution chart, Islamic Arab Insurance Co ranks #421 out of 506 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Islamic Arab Insurance Co has a GF Score™ of 42/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Islamic Arab Insurance Co's ROA % compare to BRK.A and AIG?
According to the Insurance industry distribution chart, Islamic Arab Insurance Co ranks #421 out of 506 companies for ROA %. This places Islamic Arab Insurance Co in the lower half of its industry. The industry median ROA % is 2.70. Islamic Arab Insurance Co's value of 1.35% is 50% below this benchmark. While the company's 10-year median is 0.45 vs. the industry median of 2.70, Islamic Arab Insurance Co has consistently been below 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 ROA % for an Insurance company?
The median ROA % among Insurance companies is 2.70, based on 506 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Islamic Arab Insurance Co's current ROA % of 1.35% is 50% below 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Islamic Arab Insurance Co and its competitors. For the Insurance industry, the median ROA % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Islamic Arab Insurance Co's current ROA % is 1.35%, which is 200% above median its own 10-year median of 0.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Islamic Arab Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, Islamic Arab Insurance Co (DFM:SALAMA) is currently considered Fairly Valued. The stock's GF Value™ is د.إ0.83, compared to a current price of د.إ0.76 — trading 8.6% below its estimated fair value. The current ROA % is 1.35%, which is 200% above median its 10-year median of 0.45 and 50% below the Insurance industry median of 2.70. Islamic Arab Insurance Co's overall GF Score™ is 42/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Islamic Arab Insurance Co (DFM:SALAMA), the current ROA % is 1.35% 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 Islamic Arab Insurance Co (DFM:SALAMA) Overvalued in 2026?
Based on GuruFocus' analysis, Islamic Arab Insurance Co stock appears to be undervalued.
The current stock price of د.إ0.76 is trading 8.6% below its estimated GF Value™ of د.إ0.83.
GuruFocus considers Islamic Arab Insurance Co to be Fairly Valued.
Key valuation signals for DFM:SALAMA:
ROA %: 1.35% (200% above median its 10-year median of 0.45)
GF Value™: د.إ0.83 vs. price of د.إ0.76 (8.6% below fair value)
Industry Position: 50% below the Insurance median (#421 of 506)
No single metric tells the full story. See the DFM:SALAMA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Islamic Arab Insurance Co is a Takaful (Islamic Insurance) and Re-Takaful insurance company focusing on providing sharia-compliant takaful solutions to both institutional and individual customers. It offers various insurance products, such as health insurance, auto insurance, different types of life insurance, home insurance, marine insurance, employee benefits plans, savings plans, and property and casualty insurance products, among others. The Group has two segments: General Takaful and Life Takaful. Maximum revenue is generated from the General Takaful business, incorporating all classes of general takaful, including fire, marine, motor, general accident, engineering, and medical. Geographically, the Group derives maximum revenue from Asia, and the rest from Africa.
42GF Score
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