Arabian Cement CoSAU:3010 -0.82%84 ROA % is 7.79% as of Mar. 2026, which is 48% above its 10-year median of 5.26. GuruFocus rates SAU:3010 with a GF Score™ of 84/100 and a GF Value™ of ﷼32.74 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 409 Building Materials companies, Arabian Cement Co ranks better than 78.48% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Arabian Cement Co's annualizedNet Income for the quarter that ended in Mar. 2026 was ﷼240 Mil.
Arabian Cement Co's average Total Assets over the quarter that ended in Mar. 2026 was ﷼3,078 Mil. Therefore, Arabian Cement Co's annualized ROA % for the quarter that ended in Mar. 2026 was 7.79%.
The historical rank and industry rank for Arabian Cement Co's ROA % or its related term are showing as below:
SAU:3010'
s ROA % Range Over the Past 10 Years
Min: -0.7 Med: 5.26 Max: 12.7
Current: 6.58
During the past 13 years, Arabian Cement Co's highest ROA % was 12.70%. The lowest was -0.70%. And the median was 5.26%.
SAU:3010's ROA % is ranked better than 78.48% of 409
companies
in the Building Materials industry
Industry Median: 2.34
vs SAU:3010: 6.58
Arabian Cement Co (SAU:3010) 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.
Arabian Cement Co ROA % Related Terms
Arabian Cement Co ROA % Historical Data
* Premium members only.
The historical data trend for Arabian Cement Co's ROA % 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.
For the Building Materials subindustry, Arabian Cement 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.
Arabian Cement Co ROA % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Arabian Cement Co's ROA % distribution charts can be found below:
* The bar in red indicates where Arabian Cement 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.
Arabian Cement Co (SAU:3010) has a ROA % of 7.79% 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 Arabian Cement Co and its competitors. This is 48% above median its historical median of 5.26. According to the industry distribution chart, Arabian Cement Co ranks #88 out of 409 companies in the Building Materials industry, placing it in the top 21.5%.
Is Arabian Cement Co's ROA % too high?
Arabian Cement Co's current ROA % of 7.79% is 48% above median its 10-year median of 5.26. The Building Materials industry median ROA % is 2.34. Arabian Cement Co's value of 7.79% is 232.9% above this industry median. Based on the distribution chart, Arabian Cement Co ranks #88 out of 409 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Arabian Cement Co has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arabian Cement Co's ROA % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Arabian Cement Co ranks #88 out of 409 companies for ROA %. This places Arabian Cement Co in the top 22% of its industry — outperforming the majority of peers. The industry median ROA % is 2.34. Arabian Cement Co's value of 7.79% is 232.9% above this benchmark. While the company's 10-year median is 5.26 vs. the industry median of 2.34, Arabian Cement 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 ROA % for a Building Materials company?
The median ROA % among Building Materials companies is 2.34, based on 409 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. Arabian Cement Co's current ROA % of 7.79% is 232.9% 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 Arabian Cement Co and its competitors. For the Building Materials industry, the median ROA % is 2.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Cement Co's current ROA % is 7.79%, which is 48% above median its own 10-year median of 5.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Cement Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Cement Co (SAU:3010) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼32.74, compared to a current price of ﷼22.91 — trading 30% below its estimated fair value. The current ROA % is 7.79%, which is 48% above median its 10-year median of 5.26 and 232.9% above the Building Materials industry median of 2.34. Arabian Cement Co's overall GF Score™ is 84/100 with 3 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 Arabian Cement Co (SAU:3010), the current ROA % is 7.79% 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 Arabian Cement Co (SAU:3010) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Cement Co stock appears to be undervalued.
The current stock price of ﷼22.91 is trading 30% below its estimated GF Value™ of ﷼32.74.
GuruFocus considers Arabian Cement Co to be Significantly Undervalued.
Key valuation signals for SAU:3010:
ROA %: 7.79% (48% above median its 10-year median of 5.26)
GF Value™: ﷼32.74 vs. price of ﷼22.91 (30% below fair value)
Industry Position: 232.9% above the Building Materials median (#88 of 409)
No single metric tells the full story. See the SAU:3010 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Cement Co Ltd operates as a cement company in the Kingdom of Saudi Arabia and the Arabian Gulf region. Along with its subsidiaries, the company is engaged in the production of cement, building materials, trading of clinker, cement, construction materials, and other related materials and derivatives. The company's geographical segments include Inside KSA and the Outside Kingdom of Saudi Arabia. It derives a majority of its revenue from Inside KSA.
84GF Score
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