SAU:2070's ROA % is ranked better than 56.52% of 1005
companies
in the Drug Manufacturers industry
Industry Median: 2.72
vs SAU:2070: 4.05
Saudi Pharmaceutical Industries & Medical Appliances (SAU:2070) 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.
Saudi Pharmaceutical Industries & Medical Appliances ROA % Related Terms
Saudi Pharmaceutical Industries & Medical Appliances 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.
Saudi Pharmaceutical Industries & Medical Appliances ROA % Chart
Saudi Pharmaceutical Industries & Medical Appliances Annual 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 Pharmaceutical Industries & Medical Appliances ROA % vs Drug Manufacturers 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 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.
Saudi Pharmaceutical Industries & Medical Appliances (SAU:2070) has a ROA % of 6.03% 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 Saudi Pharmaceutical Industries & Medical Appliances and its competitors. This is 453% above median its historical median of 1.09. According to the industry distribution chart, Saudi Pharmaceutical Industries & Medical Appliances ranks #437 out of 1005 companies in the Drug Manufacturers industry, placing it in the top 43.5%.
Is Saudi Pharmaceutical Industries & Medical Appliances' ROA % too high?
Saudi Pharmaceutical Industries & Medical Appliances' current ROA % of 6.03% is 453% above median its 10-year median of 1.09. The Drug Manufacturers industry median ROA % is 2.72. Saudi Pharmaceutical Industries & Medical Appliances' value of 6.03% is 121.7% above this industry median. Based on the distribution chart, Saudi Pharmaceutical Industries & Medical Appliances ranks #437 out of 1005 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Saudi Pharmaceutical Industries & Medical Appliances has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Saudi Pharmaceutical Industries & Medical Appliances' ROA % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Saudi Pharmaceutical Industries & Medical Appliances ranks #437 out of 1005 companies for ROA %. This puts Saudi Pharmaceutical Industries & Medical Appliances in the upper half of its industry. The industry median ROA % is 2.72. Saudi Pharmaceutical Industries & Medical Appliances' value of 6.03% is 121.7% above this benchmark. While the company's 10-year median is 1.09 vs. the industry median of 2.72, Saudi Pharmaceutical Industries & Medical Appliances 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 ROA % for a Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.72, based on 1,005 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. Saudi Pharmaceutical Industries & Medical Appliances's current ROA % of 6.03% is 121.7% 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 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 Saudi Pharmaceutical Industries & Medical Appliances and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Pharmaceutical Industries & Medical Appliances's current ROA % is 6.03%, which is 453% above median its own 10-year median of 1.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Pharmaceutical Industries & Medical Appliances stock overvalued right now?
Based on GuruFocus' analysis, Saudi Pharmaceutical Industries & Medical Appliances (SAU:2070) is currently considered Fairly Valued. The stock's GF Value™ is ﷼31.15, compared to a current price of ﷼29.00 — trading 6.9% below its estimated fair value. The current ROA % is 6.03%, which is 453% above median its 10-year median of 1.09 and 121.7% above the Drug Manufacturers industry median of 2.72. Saudi Pharmaceutical Industries & Medical Appliances' overall GF Score™ is 70/100 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 Saudi Pharmaceutical Industries & Medical Appliances (SAU:2070), the current ROA % is 6.03% 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 Pharmaceutical Industries & Medical Appliances (SAU:2070) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Pharmaceutical Industries & Medical Appliances stock appears to be undervalued.
The current stock price of ﷼29.00 is trading 6.9% below its estimated GF Value™ of ﷼31.15.
GuruFocus considers Saudi Pharmaceutical Industries & Medical Appliances to be Fairly Valued.
Key valuation signals for SAU:2070:
ROA %: 6.03% (453% above median its 10-year median of 1.09)
GF Value™: ﷼31.15 vs. price of ﷼29.00 (6.9% below fair value)
Industry Position: 121.7% above the Drug Manufacturers median (#437 of 1005)
No single metric tells the full story. See the SAU:2070 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Pharmaceutical Industries & Medical Appliances Business Description
Saudi Pharmaceutical Industries & Medical Appliances Corp is involved in the manufacturing of basic chemical substances and products; medicines for human use, including cosmetics; pharmaceutical production and wholesale and retail of medicines and related products; development and marketing of medicinal and pharmaceutical products; research and development in medical science activities; operating and maintaining the healthcare facilities and any investments in related industries. The segments of the company are Pharmaceutical Manufacturing, Trading and Distribution services, and Healthcare Services, out of which the company derives maximum revenue from the Pharmaceutical Manufacturing segment. Its geographical segments are Saudi Arabia, Egypt, the Middle East, Morocco, and Algeria.
70GF Score
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