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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 %. Dar AlMajed Real Estate Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.68%.
As of today (2026-07-24), Dar AlMajed Real Estate Co's WACC % is 7.06%. Dar AlMajed Real Estate Co's ROC % is 6.09% (calculated using TTM income statement data).
Dar AlMajed Real Estate Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Dar AlMajed Real Estate Co (SAU:4326) 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, Dar AlMajed Real Estate Co's WACC % is 7.06%. Dar AlMajed Real Estate Co's ROC % is 6.09% (calculated using TTM income statement data).
Dar AlMajed Real Estate 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.
* 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.
Dar AlMajed Real Estate Co (SAU:4326) has a ROC % of 8.68% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Dar AlMajed Real Estate Co and its competitors.
Is Dar AlMajed Real Estate Co's ROC % too high?
Dar AlMajed Real Estate Co's current ROC % is 8.68%. The Real Estate industry median ROC % is 2.17. Dar AlMajed Real Estate Co's value of 8.68% is 300.9% above this industry median. Overall, Dar AlMajed Real Estate Co has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Dar AlMajed Real Estate Co's ROC % compare to competitors?
Dar AlMajed Real Estate Co's ROC % of 8.68% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.17. Dar AlMajed Real Estate Co's value of 8.68% is 300.9% 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 Real Estate company?
The median ROC % among Real Estate companies is 2.17, based on 1,754 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. Dar AlMajed Real Estate Co's current ROC % of 8.68% is 300.9% 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 Dar AlMajed Real Estate Co and its competitors. For the Real Estate industry, the median ROC % is 2.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dar AlMajed Real Estate Co's current ROC % is 8.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dar AlMajed Real Estate Co stock overvalued right now?
Dar AlMajed Real Estate Co (SAU:4326) has a current ROC % of 8.68%. The current ROC % is 8.68% and 300.9% above the Real Estate industry median of 2.17. Dar AlMajed Real Estate Co's overall GF Score™ is 16/100 with 5 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 Dar AlMajed Real Estate Co (SAU:4326), the current ROC % is 8.68% 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.
Dar AlMajed Real Estate Co, along with its subsidiaries, is engaged in general construction of residential buildings, construction of prefabricated buildings on sites, renovations of residential and non-residential buildings, purchase and sale of land and real estate, division and off-plan sales activities, management and rent of owned or leased real estate (residential and nonresidential), management and operation of hotel apartments and real estate management activities for a commission. Its business segments include Properties Unit Sales Segment, Off-Plan Property Unit Sales Segment, Land Sales Segment, Real Estate Commission Segment, Real Estate Development Segment, Maintenance Segment, and Leasing Segment. The majority of revenue is derived from Off-Plan Property Unit Sales Segment.
16GF Score
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