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What is Middle East Pharmaceutical Industries Co ROA %?
Middle East Pharmaceutical Industries CoSAU:4016 -0.74%22 ROA % is 17.55% as of Mar. 2026, which is 8% above its 10-year median of 16.30. GuruFocus rates SAU:4016 with a GF Score™ of 22/100. The stock has 3 warning signs investors should review. Among 1,007 Drug Manufacturers companies, Middle East Pharmaceutical Industries Co ranks better than 95.13% on this metric.
SAU:4016's ROA % is ranked better than 95.13% of 1007
companies
in the Drug Manufacturers industry
Industry Median: 2.78
vs SAU:4016: 18.01
Middle East Pharmaceutical Industries Co (SAU:4016) 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.
Middle East Pharmaceutical Industries Co ROA % Related Terms
Middle East Pharmaceutical Industries Co 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.
Middle East Pharmaceutical Industries Co ROA % Chart
Middle East Pharmaceutical Industries Co Annual Data
Trend
Dec23
Dec24
Dec25
ROA %
14.54
16.30
17.23
Middle East Pharmaceutical Industries Co Quarterly Data
For the Drug Manufacturers - Specialty & Generic subindustry, Middle East Pharmaceutical Industries 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.
Middle East Pharmaceutical Industries Co 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.
Middle East Pharmaceutical Industries Co (SAU:4016) has a ROA % of 17.55% 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 Middle East Pharmaceutical Industries Co and its competitors. This is near median its historical median of 16.30. Over the past decade, Middle East Pharmaceutical Industries Co's ROA % has ranged from 14.54 to 18.01. According to the industry distribution chart, Middle East Pharmaceutical Industries Co ranks #49 out of 1007 companies in the Drug Manufacturers industry, placing it in the top 4.9%.
Is Middle East Pharmaceutical Industries Co's ROA % too high?
Middle East Pharmaceutical Industries Co's current ROA % of 17.55% is near median its 10-year median of 16.30. Over the past 10 years, this metric has ranged from a low of 14.54 to a high of 18.01. The Drug Manufacturers industry median ROA % is 2.78. Middle East Pharmaceutical Industries Co's value of 17.55% is 531.3% above this industry median. Based on the distribution chart, Middle East Pharmaceutical Industries Co ranks #49 out of 1007 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Middle East Pharmaceutical Industries Co has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Middle East Pharmaceutical Industries Co's ROA % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Middle East Pharmaceutical Industries Co ranks #49 out of 1007 companies for ROA %. This places Middle East Pharmaceutical Industries Co in the top 5% of its industry — outperforming the majority of peers. The industry median ROA % is 2.78. Middle East Pharmaceutical Industries Co's value of 17.55% is 531.3% above this benchmark. Historically, Middle East Pharmaceutical Industries Co's own ROA % has ranged from 14.54 to 18.01 over the past decade. While the company's 10-year median is 16.30 vs. the industry median of 2.78, Middle East Pharmaceutical Industries 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 Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.78, based on 1,007 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. Middle East Pharmaceutical Industries Co's current ROA % of 17.55% is 531.3% 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 Middle East Pharmaceutical Industries Co and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Middle East Pharmaceutical Industries Co's current ROA % is 17.55%, which is near median its own 10-year median of 16.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Middle East Pharmaceutical Industries Co stock overvalued right now?
Middle East Pharmaceutical Industries Co (SAU:4016) has a current ROA % of 17.55%. The current ROA % is 17.55%, which is near median its 10-year median of 16.30 and 531.3% above the Drug Manufacturers industry median of 2.78. Middle East Pharmaceutical Industries 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Middle East Pharmaceutical Industries Co (SAU:4016), the current ROA % is 17.55% 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.
Middle East Pharmaceutical Industries Co Business Description
Middle East Pharmaceutical Industries Co is a holding company engaged in manufacturing medicines, medicated and non-medicated creams and gels. The company operates in Private, Public, and Export segments. Geographically, it generates the majority of its revenue from Saudi Arabia.
22GF Score
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