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 Automotive Services Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 0.97%.
As of today (2026-06-28), Saudi Automotive Services Co's WACC % is 9.05%. Saudi Automotive Services Co's ROC % is 1.78% (calculated using TTM income statement data).
Saudi Automotive Services Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Saudi Automotive Services Co (SAU:4050) 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 Automotive Services Co's WACC % is 9.05%. Saudi Automotive Services Co's ROC % is 1.78% (calculated using TTM income statement data).
Saudi Automotive Services 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.
Saudi Automotive Services Co ROC % Related Terms
Saudi Automotive Services Co 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.
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 Automotive Services Co (SAU:4050) has a ROC % of 0.97% 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 Automotive Services Co and its competitors.
Is Saudi Automotive Services Co's ROC % too high?
Saudi Automotive Services Co's current ROC % is 0.97%. The Retail - Cyclical industry median ROC % is 4.36. Saudi Automotive Services Co's value of 0.97% is 77.8% below this industry median. Overall, Saudi Automotive Services Co has a GF Score™ of 89/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Saudi Automotive Services Co's ROC % compare to CASY and WSM?
Saudi Automotive Services Co's ROC % of 0.97% can be compared against companies in the Retail - Cyclical industry. The industry median ROC % is 4.36. Saudi Automotive Services Co's value of 0.97% is 77.8% below 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 Retail - Cyclical company?
The median ROC % among Retail - Cyclical companies is 4.36, based on 1,108 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 Automotive Services Co's current ROC % of 0.97% is 77.8% below 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 Automotive Services Co and its competitors. For the Retail - Cyclical industry, the median ROC % is 4.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Automotive Services Co's current ROC % is 0.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Automotive Services Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Automotive Services Co (SAU:4050) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼75.85, compared to a current price of ﷼45.60 — trading 39.9% below its estimated fair value. The current ROC % is 0.97% and 77.8% below the Retail - Cyclical industry median of 4.36. Saudi Automotive Services Co's overall GF Score™ is 89/100 with 10 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 Automotive Services Co (SAU:4050), the current ROC % is 0.97% 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 Automotive Services Co (SAU:4050) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Automotive Services Co stock appears to be undervalued.
The current stock price of ﷼45.60 is trading 39.9% below its estimated GF Value™ of ﷼75.85.
GuruFocus considers Saudi Automotive Services Co to be Significantly Undervalued.
Key valuation signals for SAU:4050:
ROC %: 0.97%
GF Value™: ﷼75.85 vs. price of ﷼45.60 (39.9% below fair value)
Industry Position: 77.8% below the Retail - Cyclical median
No single metric tells the full story. See the SAU:4050 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Automotive Services Co owns and manages fuel stations, auto and travelers services centers, motels, restaurants, C-stores inside cities and on highways, and an auto club which issues customs traffic documents (TripTik), international driving licenses, and organizes sports activities. In addition, the group also provides road transportation services for liquid and dry materials. Along with its subsidiaries, it operates in the following segments: Retail and operations, Saudi Club, SASCO Palm, Transportation Fleet, and Others. Maximum revenue is derived from the Retail and operations segment, which represents income generated from its fuel station operations and the operation of residential and commercial buildings. Geographically, the group operates only in the Kingdom of Saudi Arabia.
89GF Score
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