Riyadh Steel Co (SAU:9588) ROCE %: 11.14% (As of Dec. 2025)

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SAU:9588 Riyadh Steel Co SAU:9588
22 GF Score
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! 3 Warning Signs
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What is Riyadh Steel Co ROCE %?

Riyadh Steel Co SAU:9588 22 ROCE % is 11.14% as of Dec. 2025. GuruFocus rates SAU:9588 with a GF Score™ of 22/100. The stock has 3 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. Riyadh Steel Co's annualized ROCE % for the quarter that ended in Dec. 2025 was 11.14%.

Riyadh Steel Co  (SAU:9588) 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.

Riyadh Steel Co ROCE % Related Terms

Riyadh Steel Co ROCE % Historical Data

* Premium members only.

The historical data trend for Riyadh Steel 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.

Riyadh Steel Co ROCE % Chart

Riyadh Steel Co Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
8.36 9.30 17.40 6.06 9.51

Riyadh Steel Co Semi-Annual Data
Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.04 8.67 3.04 7.65 11.14
SAU:9588
22GF Score
Riyadh Steel Co SAU:9588
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Riyadh Steel Co ROCE % Calculation

Riyadh Steel 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 )
=8.96/( ( (101.842 - 9.951) + (103.716 - 7.142) )/ 2 )
=8.96/( (91.891+96.574)/ 2 )
=8.96/94.2325
=9.51 %

Riyadh Steel 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 )
=10.73/( ( (102.847 - 6.802) + (103.716 - 7.142) )/ 2 )
=10.73/( ( 96.045 + 96.574 )/ 2 )
=10.73/96.3095
=11.14 %

(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 11.14% mean?
Riyadh Steel Co (SAU:9588) has a ROCE % of 11.14% as of Dec. 2025.
Is Riyadh Steel Co's ROCE % too high?
Riyadh Steel Co's current ROCE % is 11.14%. The Steel industry median ROCE % is 5.66. Riyadh Steel Co's value of 11.14% is 97% above this industry median. Overall, Riyadh Steel Co has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Riyadh Steel Co's ROCE % compare to NUE and STLD?
Riyadh Steel Co's ROCE % of 11.14% can be compared against companies in the Steel industry. The industry median ROCE % is 5.66. Riyadh Steel Co's value of 11.14% is 97% 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 Steel company?
The median ROCE % among Steel companies is 5.66, based on 620 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. Riyadh Steel Co's current ROCE % of 11.14% is 97% 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 Steel industry, the median ROCE % is 5.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Riyadh Steel Co's current ROCE % is 11.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Riyadh Steel Co stock overvalued right now?
Riyadh Steel Co (SAU:9588) has a current ROCE % of 11.14%. The current ROCE % is 11.14% and 97% above the Steel industry median of 5.66. Riyadh Steel Co's overall GF Score™ is 22/100 with 3 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 Riyadh Steel Co (SAU:9588), the current ROCE % is 11.14% 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.

Riyadh Steel Co Business Description

Address Imam Abdullah bin Saud bin Abdulaziz Road, Al-Shuhada District, Unit 35, Building No. 4578, Riyadh, SAU, 13241
Riyadh Steel Co Group is a steel manufacturer principally engaged in the production of sheets, plates, strip coils, rods, skewers, corners, wires, and sections. The Company provides steel scrap, billets, and ASTM A36 standard flat and angle bars, and generates revenue from the sale of angled and flat bars and other finished goods, billets, and scrap iron and raw materials. It mainly operates in the Kingdom of Saudi Arabia, which generates the majority of its revenue, and also has a presence in other GCC countries.
22GF Score

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

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