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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 %. Alahli REIT Fund 1's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 3.74%.
As of today (2026-07-17), Alahli REIT Fund 1's WACC % is 6.59%. Alahli REIT Fund 1's ROC % is 3.59% (calculated using TTM income statement data).
Alahli REIT Fund 1 earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Alahli REIT Fund 1 (SAU:4338) 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, Alahli REIT Fund 1's WACC % is 6.59%. Alahli REIT Fund 1's ROC % is 3.59% (calculated using TTM income statement data).
Alahli REIT Fund 1 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.
Alahli REIT Fund 1 ROC % Related Terms
Alahli REIT Fund 1 ROC % Historical Data
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The historical data trend for Alahli REIT Fund 1'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 two times the semi-annual (Dec. 2025) 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.
Alahli REIT Fund 1 (SAU:4338) has a ROC % of 3.74% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Alahli REIT Fund 1 and its competitors.
Is Alahli REIT Fund 1's ROC % too high?
Alahli REIT Fund 1's current ROC % is 3.74%. The REITs industry median ROC % is 3.76. Alahli REIT Fund 1's value of 3.74% is 0.5% below this industry median. Overall, Alahli REIT Fund 1 has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alahli REIT Fund 1's ROC % compare to VICI and WPC?
Alahli REIT Fund 1's ROC % of 3.74% can be compared against companies in the REITs industry. The industry median ROC % is 3.76. Alahli REIT Fund 1's value of 3.74% is 0.5% 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 REITs company?
The median ROC % among REITs companies is 3.76, based on 741 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. Alahli REIT Fund 1's current ROC % of 3.74% is 0.5% 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 Alahli REIT Fund 1 and its competitors. For the REITs industry, the median ROC % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alahli REIT Fund 1's current ROC % is 3.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alahli REIT Fund 1 stock overvalued right now?
Based on GuruFocus' analysis, Alahli REIT Fund 1 (SAU:4338) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼8.34, compared to a current price of ﷼6.47 — trading 22.4% below its estimated fair value. The current ROC % is 3.74% and 0.5% below the REITs industry median of 3.76. Alahli REIT Fund 1's overall GF Score™ is 72/100 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 Alahli REIT Fund 1 (SAU:4338), the current ROC % is 3.74% as of Dec. 2025. 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 Alahli REIT Fund 1 (SAU:4338) Overvalued in 2026?
Based on GuruFocus' analysis, Alahli REIT Fund 1 stock appears to be undervalued.
The current stock price of ﷼6.47 is trading 22.4% below its estimated GF Value™ of ﷼8.34.
GuruFocus considers Alahli REIT Fund 1 to be Modestly Undervalued.
Key valuation signals for SAU:4338:
ROC %: 3.74%
GF Value™: ﷼8.34 vs. price of ﷼6.47 (22.4% below fair value)
No single metric tells the full story. See the SAU:4338 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alahli REIT Fund 1 invests in income-producing properties. Its objective is to provide periodic rental income to Unitholders through investing in developed income-generating properties and to potentially provide capital growth by developing and/or expanding and/or selling assets. The Fund invests mainly in developed income-generating real estate assets and may invest part of its assets and cash surplus in Murabaha transactions and short-term deposits in Saudi Riyals with banks that are licensed by the Saudi Central Bank (SAMA) and operate in Saudi Arabia. The Fund may also invest in public money market funds approved by CMA.
72GF Score
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