KUW:AREEC's ROE % is ranked better than 51.93% of 1733
companies
in the Real Estate industry
Industry Median: 3.96
vs KUW:AREEC: 4.42
Ajial Real Estate & Entertainment Co (KUW:AREEC) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Ajial Real Estate & Entertainment Co ROE % Related Terms
Ajial Real Estate & Entertainment Co ROE % Historical 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.
For the Real Estate Services subindustry, Ajial Real Estate & Entertainment Co's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ajial Real Estate & Entertainment Co ROE % vs Real Estate Industry
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Ajial Real Estate & Entertainment Co (KUW:AREEC) has a ROE % of 4.44% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Ajial Real Estate & Entertainment Co and its competitors. This is 60% above median its historical median of 2.78. Over the past decade, Ajial Real Estate & Entertainment Co's ROE % has ranged from 1.10 to 4.45. According to the industry distribution chart, Ajial Real Estate & Entertainment Co ranks #833 out of 1733 companies in the Real Estate industry, placing it in the top 48.1%.
Is Ajial Real Estate & Entertainment Co's ROE % too high?
Ajial Real Estate & Entertainment Co's current ROE % of 4.44% is 60% above median its 10-year median of 2.78. Over the past 10 years, this metric has ranged from a low of 1.10 to a high of 4.45. The Real Estate industry median ROE % is 3.96. Ajial Real Estate & Entertainment Co's value of 4.44% is 12.1% above this industry median. Based on the distribution chart, Ajial Real Estate & Entertainment Co ranks #833 out of 1733 companies in the Real Estate industry, which is above the industry midpoint. Overall, Ajial Real Estate & Entertainment Co has a GF Score™ of 44/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ajial Real Estate & Entertainment Co's ROE % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Ajial Real Estate & Entertainment Co ranks #833 out of 1733 companies for ROE %. This puts Ajial Real Estate & Entertainment Co in the upper half of its industry. The industry median ROE % is 3.96. Ajial Real Estate & Entertainment Co's value of 4.44% is 12.1% above this benchmark. Historically, Ajial Real Estate & Entertainment Co's own ROE % has ranged from 1.10 to 4.45 over the past decade. While the company's 10-year median is 2.78 vs. the industry median of 3.96, Ajial Real Estate & Entertainment Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Real Estate company?
The median ROE % among Real Estate companies is 3.96, based on 1,733 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ajial Real Estate & Entertainment Co's current ROE % of 4.44% is 12.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Ajial Real Estate & Entertainment Co and its competitors. For the Real Estate industry, the median ROE % is 3.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ajial Real Estate & Entertainment Co's current ROE % is 4.44%, which is 60% above median its own 10-year median of 2.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ajial Real Estate & Entertainment Co stock overvalued right now?
Based on GuruFocus' analysis, Ajial Real Estate & Entertainment Co (KUW:AREEC) is currently considered Modestly Undervalued. The stock's GF Value™ is KWD0.35, compared to a current price of KWD0.31 — trading 11.7% below its estimated fair value. The current ROE % is 4.44%, which is 60% above median its 10-year median of 2.78 and 12.1% above the Real Estate industry median of 3.96. Ajial Real Estate & Entertainment Co's overall GF Score™ is 44/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Ajial Real Estate & Entertainment Co (KUW:AREEC), the current ROE % is 4.44% 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.
Is Ajial Real Estate & Entertainment Co (KUW:AREEC) Overvalued in 2026?
Based on GuruFocus' analysis, Ajial Real Estate & Entertainment Co stock appears to be undervalued.
The current stock price of KWD0.31 is trading 11.7% below its estimated GF Value™ of KWD0.35.
GuruFocus considers Ajial Real Estate & Entertainment Co to be Modestly Undervalued.
Key valuation signals for KUW:AREEC:
ROE %: 4.44% (60% above median its 10-year median of 2.78)
GF Value™: KWD0.35 vs. price of KWD0.31 (11.7% below fair value)
Industry Position: 12.1% above the Real Estate median (#833 of 1733)
No single metric tells the full story. See the KUW:AREEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ajial Real Estate & Entertainment Co Business Description
Ajial Real Estate & Entertainment Co is engaged in all real estate activities including buying and selling lands, real estate and renting and leasing thereof inside and outside Kuwait. It establishes and maintains buildings and real estate projects including establishment of residential complexes thereof and commercial markets and entertainment centres, touristic facilities and building special accommodations. The group has three operating segments: real estate, entertainment and investment. The majority of the revenue is derived from real estate segments that comprise investment, rental of and trading in real estate and construction or development of real estate for the sale in the ordinary course of business and other related real estate services.
44GF Score
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