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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Al-Arabiya Real Estate Co KSC's annualizedNet Income for the quarter that ended in Mar. 2026 was KWD-1.07 Mil.
Al-Arabiya Real Estate Co KSC's average Total Assets over the quarter that ended in Mar. 2026 was KWD111.55 Mil. Therefore, Al-Arabiya Real Estate Co KSC's annualized ROA % for the quarter that ended in Mar. 2026 was -0.96%.
The historical rank and industry rank for Al-Arabiya Real Estate Co KSC's ROA % or its related term are showing as below:
KUW:ARABREC'
s ROA % Range Over the Past 10 Years
Min: -7.44 Med: -1.13 Max: 2.11
Current: -0.51
During the past 13 years, Al-Arabiya Real Estate Co KSC's highest ROA % was 2.11%. The lowest was -7.44%. And the median was -1.13%.
KUW:ARABREC's ROA % is ranked worse than 71.06% of 1804
companies
in the Real Estate industry
Industry Median: 1.71
vs KUW:ARABREC: -0.51
Al-Arabiya Real Estate Co KSC (KUW:ARABREC) 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.
Al-Arabiya Real Estate Co KSC ROA % Related Terms
Al-Arabiya Real Estate Co KSC ROA % 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.
For the Real Estate Services subindustry, Al-Arabiya Real Estate Co KSC'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.
Al-Arabiya Real Estate Co KSC ROA % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Al-Arabiya Real Estate Co KSC's ROA % distribution charts can be found below:
* The bar in red indicates where Al-Arabiya Real Estate Co KSC'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.
Al-Arabiya Real Estate Co KSC (KUW:ARABREC) has a ROA % of -0.96% 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 Al-Arabiya Real Estate Co KSC and its competitors. According to the industry distribution chart, Al-Arabiya Real Estate Co KSC ranks #1282 out of 1804 companies in the Real Estate industry, placing it in the top 71.1%.
Is Al-Arabiya Real Estate Co KSC's ROA % too high?
Al-Arabiya Real Estate Co KSC's current ROA % is -0.96%. Based on the distribution chart, Al-Arabiya Real Estate Co KSC ranks #1282 out of 1804 companies in the Real Estate industry, which is below the industry midpoint. Overall, Al-Arabiya Real Estate Co KSC has a GF Score™ of 4/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Al-Arabiya Real Estate Co KSC's ROA % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Al-Arabiya Real Estate Co KSC ranks #1282 out of 1804 companies for ROA %. This places Al-Arabiya Real Estate Co KSC in the lower half of its industry. The industry median ROA % is 1.71. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Real Estate company?
The median ROA % among Real Estate companies is 1.71, based on 1,804 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. 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 Al-Arabiya Real Estate Co KSC and its competitors. For the Real Estate industry, the median ROA % is 1.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al-Arabiya Real Estate Co KSC's current ROA % is -0.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al-Arabiya Real Estate Co KSC stock overvalued right now?
Based on GuruFocus' analysis, Al-Arabiya Real Estate Co KSC (KUW:ARABREC) is currently considered Significantly Overvalued. The stock's GF Value™ is KWD0.06, compared to a current price of KWD0.18 — trading 198.3% above its estimated fair value. The current ROA % is -0.96%. Al-Arabiya Real Estate Co KSC's overall GF Score™ is 4/100 with 6 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 Al-Arabiya Real Estate Co KSC (KUW:ARABREC), the current ROA % is -0.96% 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 Al-Arabiya Real Estate Co KSC (KUW:ARABREC) Overvalued in 2026?
Based on GuruFocus' analysis, Al-Arabiya Real Estate Co KSC stock appears to be overvalued.
The current stock price of KWD0.18 is trading 198.3% above its estimated GF Value™ of KWD0.06.
GuruFocus considers Al-Arabiya Real Estate Co KSC to be Significantly Overvalued.
Key valuation signals for KUW:ARABREC:
ROA %: -0.96%
GF Value™: KWD0.06 vs. price of KWD0.18 (198.3% above fair value)
No single metric tells the full story. See the KUW:ARABREC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al-Arabiya Real Estate Co KSC Business Description
Al-Arabiya Real Estate Co KSC is a Kuwait based company involved in the construction, contracting, developing and managing the activities of residential buildings, hotels, and commercial centres within the private and public sector. It operates in three segments. Real estate segment involves activities related to real estate investment properties. Hotels segment, which is the key revenue generator, involves establishment, acquiring and managing hotels. Investment segment involves investing in shares and share capital of the companies. Geographically, it generates revenue from Kuwait being the highest revenue driver, United Arab Emirates, and Egypt.
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