Edarat Communication And Information Technology Co (SAU:9557) ROC %: 43.87% (As of Dec. 2025)

Author: Vera Yuan Vera Yuan
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Director of Data and Quant Analytics at GuruFocus
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Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

SAU:9557 Edarat Communication And Information Technology Co SAU:9557
51 GF Score
Price ﷼274.20
GF Value ﷼251.00
Valuation Fairly Valued
! 4 Warning Signs
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What is Edarat Communication And Information Technology Co ROC %?

Edarat Communication And Information Technology Co SAU:9557 +0.59% 51 ROC % is 43.87% as of Dec. 2025. GuruFocus rates SAU:9557 with a GF Score™ of 51/100 and a GF Value™ of ﷼251.00 (Fairly Valued). The stock has 4 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Edarat Communication And Information Technology Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 43.87%.

As of today (2026-07-31), Edarat Communication And Information Technology Co's WACC % is 11.90%. Edarat Communication And Information Technology Co's ROC % is 41.36% (calculated using TTM income statement data). Edarat Communication And Information Technology 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.


Edarat Communication And Information Technology Co  (SAU:9557) 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, Edarat Communication And Information Technology Co's WACC % is 11.90%. Edarat Communication And Information Technology Co's ROC % is 41.36% (calculated using TTM income statement data). Edarat Communication And Information Technology 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.


Edarat Communication And Information Technology Co ROC % Related Terms


Edarat Communication And Information Technology Co ROC % Historical Data

* Premium members only.

The historical data trend for Edarat Communication And Information Technology Co'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.

Edarat Communication And Information Technology Co ROC % Chart

Edarat Communication And Information Technology Co Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
ROC %
31.12 52.95 48.75 42.75 42.16

Edarat Communication And Information Technology Co Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROC % Get a 7-Day Free Trial Premium Member Only 46.94 45.10 43.41 37.48 43.87
SAU:9557
51GF Score
Edarat Communication And Information Technology Co SAU:9557
ROC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Edarat Communication And Information Technology Co ROC % Calculation

Edarat Communication And Information Technology Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2025 is calculated as:

ROC % (A: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2024 ) + Invested Capital (A: Dec. 2025 ))/ count )
=41.404 * ( 1 - 8.51% )/( (72.633 + 107.053)/ 2 )
=37.8805196/89.843
=42.16 %

where

Edarat Communication And Information Technology Co's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=47.774 * ( 1 - 7.19% )/( (95.097 + 107.053)/ 2 )
=44.3390494/101.075
=43.87 %

where

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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of 43.87% mean?
Edarat Communication And Information Technology Co (SAU:9557) has a ROC % of 43.87% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Edarat Communication And Information Technology Co and its competitors.
Is Edarat Communication And Information Technology Co's ROC % too high?
Edarat Communication And Information Technology Co's current ROC % is 43.87%. The Software industry median ROC % is 3.13. Edarat Communication And Information Technology Co's value of 43.87% is 1301.6% above this industry median. Overall, Edarat Communication And Information Technology Co has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Edarat Communication And Information Technology Co's ROC % compare to IBM and ACN?
Edarat Communication And Information Technology Co's ROC % of 43.87% can be compared against companies in the Software industry. The industry median ROC % is 3.13. Edarat Communication And Information Technology Co's value of 43.87% is 1301.6% 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 Software company?
The median ROC % among Software companies is 3.13, based on 2,833 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. Edarat Communication And Information Technology Co's current ROC % of 43.87% is 1301.6% 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 Edarat Communication And Information Technology Co and its competitors. For the Software industry, the median ROC % is 3.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Edarat Communication And Information Technology Co's current ROC % is 43.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Edarat Communication And Information Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Edarat Communication And Information Technology Co (SAU:9557) is currently considered Fairly Valued. The stock's GF Value™ is ﷼251.00, compared to a current price of ﷼274.20 — trading 9.2% above its estimated fair value. The current ROC % is 43.87% and 1301.6% above the Software industry median of 3.13. Edarat Communication And Information Technology Co's overall GF Score™ is 51/100 with 4 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 Edarat Communication And Information Technology Co (SAU:9557), the current ROC % is 43.87% 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 Edarat Communication And Information Technology Co (SAU:9557) Overvalued in 2026?

Based on GuruFocus' analysis, Edarat Communication And Information Technology Co stock appears to be overvalued. The current stock price of ﷼274.20 is trading 9.2% above its estimated GF Value™ of ﷼251.00. GuruFocus considers Edarat Communication And Information Technology Co to be Fairly Valued.

Key valuation signals for SAU:9557:

  • ROC %: 43.87%
  • GF Value™: ﷼251.00 vs. price of ﷼274.20 (9.2% above fair value)
  • GF Score™: 51/100 with 4 warning signs
  • Industry Position: 1301.6% above the Software median

No single metric tells the full story. See the SAU:9557 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Edarat Communication And Information Technology Co Business Description

Address King Abdulaziz Road, PO Box. No. 2414, Al Yasmeen District, Riyadh, SAU, 13322
Edarat Communication And Information Technology Co is engaged in the implementation of service contracts including provision of virtual network operator services, colocation services, system analysis, design and programming of software, providing management and monitoring of communications and information networks, establishing web hosting infrastructure and related services, data center services and related activities and subscriptions to provide cloud computing service. Its services include data center engineering, data center colocation, Edge AI, Edarat Marketplace, and cloud services. The company has two operating segments; Data Center Engineering Services and Cloud Service. It derives maximum revenue from Data Center Engineering Services segment.
51GF Score

Get the complete analysis for SAU:9557

ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

﷼274.20
Price
﷼251.00
GF Value