Edarat Communication And Information Technology Co (SAU:9557) ROCE %: 47.60% (As of Dec. 2025)

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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 ROCE %?

Edarat Communication And Information Technology Co SAU:9557 +0.59% 51 ROCE % is 47.60% 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Edarat Communication And Information Technology Co's annualized ROCE % for the quarter that ended in Dec. 2025 was 47.60%.


Edarat Communication And Information Technology Co  (SAU:9557) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.


Edarat Communication And Information Technology Co ROCE % Related Terms


Edarat Communication And Information Technology Co ROCE % Historical Data

* Premium members only.

The historical data trend for Edarat Communication And Information Technology Co's ROCE % 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 ROCE % Chart

Edarat Communication And Information Technology Co Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
50.34 68.57 55.49 48.72 45.49

Edarat Communication And Information Technology Co Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only 51.55 51.12 47.99 43.65 47.60
SAU:9557
51GF Score
Edarat Communication And Information Technology Co SAU:9557
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Edarat Communication And Information Technology Co ROCE % Calculation

Edarat Communication And Information Technology Co's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=40.55/( ( (89.448 - 19.98) + (165.819 - 57.019) )/ 2 )
=40.55/( (69.468+108.8)/ 2 )
=40.55/89.134
=45.49 %

Edarat Communication And Information Technology Co's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=46.782/( ( (122.135 - 34.379) + (165.819 - 57.019) )/ 2 )
=46.782/( ( 87.756 + 108.8 )/ 2 )
=46.782/98.278
=47.60 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

* 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 ROCE % →
What does a ROCE % of 47.60% mean?
Edarat Communication And Information Technology Co (SAU:9557) has a ROCE % of 47.60% as of Dec. 2025.
Is Edarat Communication And Information Technology Co's ROCE % too high?
Edarat Communication And Information Technology Co's current ROCE % is 47.60%. The Software industry median ROCE % is 5.35. Edarat Communication And Information Technology Co's value of 47.60% is 790.6% 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 ROCE % compare to IBM and ACN?
Edarat Communication And Information Technology Co's ROCE % of 47.60% can be compared against companies in the Software industry. The industry median ROCE % is 5.35. Edarat Communication And Information Technology Co's value of 47.60% is 790.6% 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 ROCE % for a Software company?
The median ROCE % among Software companies is 5.35, based on 2,726 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % 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 ROCE % of 47.60% is 790.6% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.35 — 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 ROCE % is 47.60%. 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 ROCE % is 47.60% and 790.6% above the Software industry median of 5.35. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Edarat Communication And Information Technology Co (SAU:9557), the current ROCE % is 47.60% 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:

  • ROCE %: 47.60%
  • GF Value™: ﷼251.00 vs. price of ﷼274.20 (9.2% above fair value)
  • GF Score™: 51/100 with 4 warning signs
  • Industry Position: 790.6% 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

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

﷼274.20
Price
﷼251.00
GF Value