ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Arabian Cement Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.06%.
As of today (2026-06-29), Arabian Cement Co's WACC % is 7.87%. Arabian Cement Co's ROC % is 6.71% (calculated using TTM income statement data).
Arabian Cement Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Arabian Cement Co (SAU:3010) 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, Arabian Cement Co's WACC % is 7.87%. Arabian Cement Co's ROC % is 6.71% (calculated using TTM income statement data).
Arabian Cement Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Arabian Cement Co ROC % Related Terms
Arabian Cement Co ROC % Historical Data
* Premium members only.
The historical data trend for Arabian Cement Co's ROC % 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.
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.
Arabian Cement Co (SAU:3010) has a ROC % of 8.06% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Arabian Cement Co and its competitors.
Is Arabian Cement Co's ROC % too high?
Arabian Cement Co's current ROC % is 8.06%. The Building Materials industry median ROC % is 3.46. Arabian Cement Co's value of 8.06% is 132.9% above this industry median. Overall, Arabian Cement Co has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arabian Cement Co's ROC % compare to CRH and VMC?
Arabian Cement Co's ROC % of 8.06% can be compared against companies in the Building Materials industry. The industry median ROC % is 3.46. Arabian Cement Co's value of 8.06% is 132.9% 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 Building Materials company?
The median ROC % among Building Materials companies is 3.46, based on 397 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. Arabian Cement Co's current ROC % of 8.06% is 132.9% 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 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 Arabian Cement Co and its competitors. For the Building Materials industry, the median ROC % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Cement Co's current ROC % is 8.06%. 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 Modestly Undervalued. The stock's GF Value™ is ﷼32.75, compared to a current price of ﷼23.37 — trading 28.6% below its estimated fair value. The current ROC % is 8.06% and 132.9% above the Building Materials industry median of 3.46. Arabian Cement Co's overall GF Score™ is 87/100 with 3 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 Arabian Cement Co (SAU:3010), the current ROC % is 8.06% 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 ﷼23.37 is trading 28.6% below its estimated GF Value™ of ﷼32.75.
GuruFocus considers Arabian Cement Co to be Modestly Undervalued.
Key valuation signals for SAU:3010:
ROC %: 8.06%
GF Value™: ﷼32.75 vs. price of ﷼23.37 (28.6% below fair value)
Industry Position: 132.9% above the Building Materials median
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.
87GF Score
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