ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Saudi Manpower Solutions Co (SMASCO)'s annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 21.88%.
As of today (2026-06-29), Saudi Manpower Solutions Co (SMASCO)'s WACC % is 10.47%. Saudi Manpower Solutions Co (SMASCO)'s ROC % is 19.38% (calculated using TTM income statement data).
Saudi Manpower Solutions Co (SMASCO) generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Saudi Manpower Solutions Co (SMASCO) (SAU:1834) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Saudi Manpower Solutions Co (SMASCO)'s WACC % is 10.47%. Saudi Manpower Solutions Co (SMASCO)'s ROC % is 19.38% (calculated using TTM income statement data).
Saudi Manpower Solutions Co (SMASCO) generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of 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.
Saudi Manpower Solutions Co (SMASCO) ROC % Related Terms
Saudi Manpower Solutions Co (SMASCO) ROC % 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 Manpower Solutions Co (SMASCO) ROC % Chart
Saudi Manpower Solutions Co (SMASCO) Annual Data
Trend
Dec23
Dec24
Dec25
ROC %
21.29
15.93
20.00
Saudi Manpower Solutions Co (SMASCO) Quarterly Data
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 Manpower Solutions Co (SMASCO) (SAU:1834) has a ROC % of 21.88% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Saudi Manpower Solutions Co (SMASCO) and its competitors.
Is Saudi Manpower Solutions Co (SMASCO)'s ROC % too high?
Saudi Manpower Solutions Co (SMASCO)'s current ROC % is 21.88%. The Business Services industry median ROC % is 5.93. Saudi Manpower Solutions Co (SMASCO)'s value of 21.88% is 269% above this industry median. Overall, Saudi Manpower Solutions Co (SMASCO) has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Saudi Manpower Solutions Co (SMASCO)'s ROC % compare to KFY and RHI?
Saudi Manpower Solutions Co (SMASCO)'s ROC % of 21.88% can be compared against companies in the Business Services industry. The industry median ROC % is 5.93. Saudi Manpower Solutions Co (SMASCO)'s value of 21.88% is 269% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Business Services company?
The median ROC % among Business Services companies is 5.93, based on 1,075 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Saudi Manpower Solutions Co (SMASCO)'s current ROC % of 21.88% is 269% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Saudi Manpower Solutions Co (SMASCO) and its competitors. For the Business Services industry, the median ROC % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Manpower Solutions Co (SMASCO)'s current ROC % is 21.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Manpower Solutions Co (SMASCO) stock overvalued right now?
Saudi Manpower Solutions Co (SMASCO) (SAU:1834) has a current ROC % of 21.88%. The current ROC % is 21.88% and 269% above the Business Services industry median of 5.93. Saudi Manpower Solutions Co (SMASCO)'s overall GF Score™ is 20/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Saudi Manpower Solutions Co (SMASCO) (SAU:1834), the current ROC % is 21.88% 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.
Saudi Manpower Solutions Co (SMASCO) Business Description
Saudi Manpower Solutions Co (SMASCO) mainly provides employment agency services and administration and support to individuals and businesses for temporary employment of foreign labour. The Group's reportable operating segments are: Corporate, Individuals, Logistic, and Others. Maximum revenue is derived from the Corporate segment, which provides services of expatriate and Saudi labour to companies whose contracts extend for two years. The Individuals segment provides home labour services to individual customers whose contract duration ranges from one month to two years, including various hourly works, and the Logistic segment includes storage facilities for all types of goods, accommodation services, and transportation services.
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