ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Almunajem Foods's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 24.69%.
As of today (2026-06-29), Almunajem Foods's WACC % is 12.63%. Almunajem Foods's ROC % is 15.29% (calculated using TTM income statement data).
Almunajem Foods 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.
Almunajem Foods (SAU:4162) 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, Almunajem Foods's WACC % is 12.63%. Almunajem Foods's ROC % is 15.29% (calculated using TTM income statement data).
Almunajem Foods 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.
Almunajem Foods ROC % Related Terms
Almunajem Foods ROC % Historical Data
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The historical data trend for Almunajem Foods'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.
Almunajem Foods (SAU:4162) has a ROC % of 24.69% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Almunajem Foods and its competitors.
Is Almunajem Foods' ROC % too high?
Almunajem Foods' current ROC % is 24.69%. The Retail - Defensive industry median ROC % is 5.71. Almunajem Foods' value of 24.69% is 332.4% above this industry median. Overall, Almunajem Foods has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Almunajem Foods' ROC % compare to SYY and USFD?
Almunajem Foods' ROC % of 24.69% can be compared against companies in the Retail - Defensive industry. The industry median ROC % is 5.71. Almunajem Foods' value of 24.69% is 332.4% 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 Retail - Defensive company?
The median ROC % among Retail - Defensive companies is 5.71, based on 307 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. Almunajem Foods's current ROC % of 24.69% is 332.4% 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 Almunajem Foods and its competitors. For the Retail - Defensive industry, the median ROC % is 5.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Almunajem Foods's current ROC % is 24.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Almunajem Foods stock overvalued right now?
Based on GuruFocus' analysis, Almunajem Foods (SAU:4162) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼75.34, compared to a current price of ﷼61.55 — trading 18.3% below its estimated fair value. The current ROC % is 24.69% and 332.4% above the Retail - Defensive industry median of 5.71. Almunajem Foods' overall GF Score™ is 84/100 with 8 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 Almunajem Foods (SAU:4162), the current ROC % is 24.69% 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 Almunajem Foods (SAU:4162) Overvalued in 2026?
Based on GuruFocus' analysis, Almunajem Foods stock appears to be undervalued.
The current stock price of ﷼61.55 is trading 18.3% below its estimated GF Value™ of ﷼75.34.
GuruFocus considers Almunajem Foods to be Modestly Undervalued.
Key valuation signals for SAU:4162:
ROC %: 24.69%
GF Value™: ﷼75.34 vs. price of ﷼61.55 (18.3% below fair value)
Industry Position: 332.4% above the Retail - Defensive median
No single metric tells the full story. See the SAU:4162 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Almunajem Foods is a food company engaged in the wholesale and retail trading of fruits, vegetables, cold and frozen poultry and meat, and caned, food products. Asmak, Coopoliva (Agro Sevilla), Dari, Doux, Fletcher, Lamb Weston, Marietta, Montana and others are some of the brands of the company. The Group operates in three regions in the Kingdom of Saudi Arabia, which are its reportable segments: Central region, Eastern and Northern regions, and Western and Southern regions.
84GF Score
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