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Saudi Azm for Communication and Information Technology Co (SAU:7211) 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 Azm for Communication and Information Technology Co ROA % Related Terms
Saudi Azm for Communication and Information Technology 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.
Saudi Azm for Communication and Information Technology Co ROA % Chart
Saudi Azm for Communication and Information Technology Co Annual Data
Trend
Jun21
Jun22
Jun23
Jun24
Jun25
ROA %
19.75
20.51
17.33
13.96
12.76
Saudi Azm for Communication and Information Technology Co Quarterly 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 Azm for Communication and Information Technology Co ROA % vs Software 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 Azm for Communication and Information Technology Co (SAU:7211) has a ROA % of 11.54% 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 Azm for Communication and Information Technology Co and its competitors. This is 33% below median its historical median of 17.33. Over the past decade, Saudi Azm for Communication and Information Technology Co's ROA % has ranged from 12.76 to 20.51. According to the industry distribution chart, Saudi Azm for Communication and Information Technology Co ranks #323 out of 2893 companies in the Software industry, placing it in the top 11.2%.
Is Saudi Azm for Communication and Information Technology Co's ROA % too high?
Saudi Azm for Communication and Information Technology Co's current ROA % of 11.54% is 33% below median its 10-year median of 17.33. Over the past 10 years, this metric has ranged from a low of 12.76 to a high of 20.51. The Software industry median ROA % is 1.70. Saudi Azm for Communication and Information Technology Co's value of 11.54% is 578.8% above this industry median. Based on the distribution chart, Saudi Azm for Communication and Information Technology Co ranks #323 out of 2893 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Saudi Azm for Communication and Information Technology Co has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Saudi Azm for Communication and Information Technology Co's ROA % compare to QH and SHOP?
According to the Software industry distribution chart, Saudi Azm for Communication and Information Technology Co ranks #323 out of 2893 companies for ROA %. This places Saudi Azm for Communication and Information Technology Co in the top 11% of its industry — outperforming the majority of peers. The industry median ROA % is 1.70. Saudi Azm for Communication and Information Technology Co's value of 11.54% is 578.8% above this benchmark. Historically, Saudi Azm for Communication and Information Technology Co's own ROA % has ranged from 12.76 to 20.51 over the past decade. While the company's 10-year median is 17.33 vs. the industry median of 1.70, Saudi Azm for Communication and Information Technology 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 Software company?
The median ROA % among Software companies is 1.70, based on 2,893 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 Azm for Communication and Information Technology Co's current ROA % of 11.54% is 578.8% 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 Azm for Communication and Information Technology Co and its competitors. For the Software industry, the median ROA % is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Azm for Communication and Information Technology Co's current ROA % is 11.54%, which is 33% below median its own 10-year median of 17.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Azm for Communication and Information Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Azm for Communication and Information Technology Co (SAU:7211) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼29.41, compared to a current price of ﷼22.34 — trading 24% below its estimated fair value. The current ROA % is 11.54%, which is 33% below median its 10-year median of 17.33 and 578.8% above the Software industry median of 1.70. Saudi Azm for Communication and Information Technology Co's overall GF Score™ is 55/100 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 Saudi Azm for Communication and Information Technology Co (SAU:7211), the current ROA % is 11.54% 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 Azm for Communication and Information Technology Co (SAU:7211) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Azm for Communication and Information Technology Co stock appears to be undervalued.
The current stock price of ﷼22.34 is trading 24% below its estimated GF Value™ of ﷼29.41.
GuruFocus considers Saudi Azm for Communication and Information Technology Co to be Modestly Undervalued.
Key valuation signals for SAU:7211:
ROA %: 11.54% (33% below median its 10-year median of 17.33)
GF Value™: ﷼29.41 vs. price of ﷼22.34 (24% below fair value)
Industry Position: 578.8% above the Software median (#323 of 2893)
No single metric tells the full story. See the SAU:7211 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Azm for Communication and Information Technology Co aims at providing solutions to projects with qualitative impact in the fields of information technology and executive consulting. The company is principally engaged in the designing and programming special software, application development, providing management and control services of communication sale of wire and wireless equipment and devices, design User Experience and customer journey, repair and maintenance of personal and portable computers, providing senior management consulting services and information networks and research and development on technology.
55GF Score
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