ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Gas Arabian Services Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 15.20%.
As of today (2026-06-29), Gas Arabian Services Co's WACC % is 3.99%. Gas Arabian Services Co's ROC % is 14.74% (calculated using TTM income statement data).
Gas Arabian Services Co 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.
Gas Arabian Services Co (SAU:4146) 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, Gas Arabian Services Co's WACC % is 3.99%. Gas Arabian Services Co's ROC % is 14.74% (calculated using TTM income statement data).
Gas Arabian Services Co 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.
* 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.
Gas Arabian Services Co (SAU:4146) has a ROC % of 15.20% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Gas Arabian Services Co and its competitors.
Is Gas Arabian Services Co's ROC % too high?
Gas Arabian Services Co's current ROC % is 15.20%. The Oil & Gas industry median ROC % is 3.66. Gas Arabian Services Co's value of 15.20% is 315.9% above this industry median. Overall, Gas Arabian Services Co has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gas Arabian Services Co's ROC % compare to SLB and BKR?
Gas Arabian Services Co's ROC % of 15.20% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.66. Gas Arabian Services Co's value of 15.20% is 315.9% 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 an Oil & Gas company?
The median ROC % among Oil & Gas companies is 3.66, based on 1,002 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. Gas Arabian Services Co's current ROC % of 15.20% is 315.9% 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 Gas Arabian Services Co and its competitors. For the Oil & Gas industry, the median ROC % is 3.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gas Arabian Services Co's current ROC % is 15.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gas Arabian Services Co stock overvalued right now?
Based on GuruFocus' analysis, Gas Arabian Services Co (SAU:4146) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼21.48, compared to a current price of ﷼17.22 — trading 19.8% below its estimated fair value. The current ROC % is 15.20% and 315.9% above the Oil & Gas industry median of 3.66. Gas Arabian Services Co's overall GF Score™ is 61/100 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 Gas Arabian Services Co (SAU:4146), the current ROC % is 15.20% 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 Gas Arabian Services Co (SAU:4146) Overvalued in 2026?
Based on GuruFocus' analysis, Gas Arabian Services Co stock appears to be undervalued.
The current stock price of ﷼17.22 is trading 19.8% below its estimated GF Value™ of ﷼21.48.
GuruFocus considers Gas Arabian Services Co to be Modestly Undervalued.
Key valuation signals for SAU:4146:
ROC %: 15.20%
GF Value™: ﷼21.48 vs. price of ﷼17.22 (19.8% below fair value)
Industry Position: 315.9% above the Oil & Gas median
No single metric tells the full story. See the SAU:4146 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gas Arabian Services Co is engaged in the business of wholesale of machinery and equipment, electrical, electronic, mechanical, hydromechanical, petroleum, industrial equipment, drilling equipment, technical equipment, desalination equipment, generators and spare parts, providing operational, maintenance and technical engineering services, manufacturing of piping spools, structural steel fabrication, pressure reducing stations and other industry essential products. Its segments include The Technical services segment provides technical manpower services and executes technical engineering projects, The Trading and commission, and The manufacturing segment. The Technical services segment derives the majority of the revenue.
61GF Score
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