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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Emaar the Economic City JSC's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -1.92%.
As of today (2026-07-27), Emaar the Economic City JSC's WACC % is 9.94%. Emaar the Economic City JSC's ROC % is 0.05% (calculated using TTM income statement data).
Emaar the Economic City JSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Emaar the Economic City JSC (SAU:4220) 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, Emaar the Economic City JSC's WACC % is 9.94%. Emaar the Economic City JSC's ROC % is 0.05% (calculated using TTM income statement data).
Emaar the Economic City JSC 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.
* 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.
Emaar the Economic City JSC (SAU:4220) has a ROC % of -1.92% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Emaar the Economic City JSC and its competitors.
Is Emaar the Economic City JSC's ROC % too high?
Emaar the Economic City JSC's current ROC % is -1.92%. Overall, Emaar the Economic City JSC has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Emaar the Economic City JSC's ROC % compare to competitors?
Emaar the Economic City JSC's ROC % of -1.92% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.15. 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 Real Estate company?
The median ROC % among Real Estate companies is 2.15, based on 1,757 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. 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 Emaar the Economic City JSC and its competitors. For the Real Estate industry, the median ROC % is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Emaar the Economic City JSC's current ROC % is -1.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Emaar the Economic City JSC stock overvalued right now?
Based on GuruFocus' analysis, Emaar the Economic City JSC (SAU:4220) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼22.65, compared to a current price of ﷼9.75 — trading 57% below its estimated fair value. The current ROC % is -1.92%. Emaar the Economic City JSC's overall GF Score™ is 59/100 with 6 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 Emaar the Economic City JSC (SAU:4220), the current ROC % is -1.92% 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 Emaar the Economic City JSC (SAU:4220) Overvalued in 2026?
Based on GuruFocus' analysis, Emaar the Economic City JSC stock appears to be undervalued.
The current stock price of ﷼9.75 is trading 57% below its estimated GF Value™ of ﷼22.65.
GuruFocus considers Emaar the Economic City JSC to be Possible Value Trap.
Key valuation signals for SAU:4220:
ROC %: -1.92%
GF Value™: ﷼22.65 vs. price of ﷼9.75 (57% below fair value)
No single metric tells the full story. See the SAU:4220 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Emaar the Economic City JSC is a real estate development and management company. The main activity of the company is the development of the King Abdullah Economic City (KAEC). It is also engaged in the development of real estate in the economic and other zones and other development activities, including infrastructures, promotion, marketing and sale of land within development areas, development of buildings and housing units, and construction on behalf of other parties. The company's reportable segments includes Residential business, Industrial development, Hospitality and leisure, Education services, and City operations. Key revenue is derived from its Residential business segment which includes revenue from sale/lease rental income of land and units for residential purposes.
59GF Score
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