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Arzan Financial Group for Financing and Investment KPSC (KUW:ARZAN) 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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Arzan Financial Group for Financing and Investment KPSC ROE % Related Terms
Arzan Financial Group for Financing and Investment KPSC 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.
Arzan Financial Group for Financing and Investment KPSC ROE % Chart
Arzan Financial Group for Financing and Investment KPSC Annual Data
* 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.
Arzan Financial Group for Financing and Investment KPSC ROE % vs Asset Management 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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Arzan Financial Group for Financing and Investment KPSC (KUW:ARZAN) has a ROE % of 3.11% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Arzan Financial Group for Financing and Investment KPSC and its competitors. This is 23% below median its historical median of 4.02. According to the industry distribution chart, Arzan Financial Group for Financing and Investment KPSC ranks #580 out of 1608 companies in the Asset Management industry, placing it in the top 36.1%.
Is Arzan Financial Group for Financing and Investment KPSC's ROE % too high?
Arzan Financial Group for Financing and Investment KPSC's current ROE % of 3.11% is 23% below median its 10-year median of 4.02. The Asset Management industry median ROE % is 6.93. Arzan Financial Group for Financing and Investment KPSC's value of 3.11% is 55.1% below this industry median. Based on the distribution chart, Arzan Financial Group for Financing and Investment KPSC ranks #580 out of 1608 companies in the Asset Management industry, which is above the industry midpoint. Overall, Arzan Financial Group for Financing and Investment KPSC has a GF Score™ of 16/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arzan Financial Group for Financing and Investment KPSC's ROE % compare to BLK and BX?
According to the Asset Management industry distribution chart, Arzan Financial Group for Financing and Investment KPSC ranks #580 out of 1608 companies for ROE %. This puts Arzan Financial Group for Financing and Investment KPSC in the upper half of its industry. The industry median ROE % is 6.93. Arzan Financial Group for Financing and Investment KPSC's value of 3.11% is 55.1% below this benchmark. While the company's 10-year median is 4.02 vs. the industry median of 6.93, Arzan Financial Group for Financing and Investment KPSC has consistently been below 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 an Asset Management company?
The median ROE % among Asset Management companies is 6.93, based on 1,608 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. Arzan Financial Group for Financing and Investment KPSC's current ROE % of 3.11% is 55.1% 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 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 Arzan Financial Group for Financing and Investment KPSC and its competitors. For the Asset Management industry, the median ROE % is 6.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arzan Financial Group for Financing and Investment KPSC's current ROE % is 3.11%, which is 23% below median its own 10-year median of 4.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arzan Financial Group for Financing and Investment KPSC stock overvalued right now?
Based on GuruFocus' analysis, Arzan Financial Group for Financing and Investment KPSC (KUW:ARZAN) is currently considered Significantly Overvalued. The stock's GF Value™ is KWD0.22, compared to a current price of KWD0.31 — trading 40.9% above its estimated fair value. The current ROE % is 3.11%, which is 23% below median its 10-year median of 4.02 and 55.1% below the Asset Management industry median of 6.93. Arzan Financial Group for Financing and Investment KPSC's overall GF Score™ is 16/100 with 5 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 Arzan Financial Group for Financing and Investment KPSC (KUW:ARZAN), the current ROE % is 3.11% as of Jun. 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 Arzan Financial Group for Financing and Investment KPSC (KUW:ARZAN) Overvalued in 2026?
Based on GuruFocus' analysis, Arzan Financial Group for Financing and Investment KPSC stock appears to be overvalued.
The current stock price of KWD0.31 is trading 40.9% above its estimated GF Value™ of KWD0.22.
GuruFocus considers Arzan Financial Group for Financing and Investment KPSC to be Significantly Overvalued.
Key valuation signals for KUW:ARZAN:
ROE %: 3.11% (23% below median its 10-year median of 4.02)
GF Value™: KWD0.22 vs. price of KWD0.31 (40.9% above fair value)
Industry Position: 55.1% below the Asset Management median (#580 of 1608)
No single metric tells the full story. See the KUW:ARZAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arzan Financial Group for Financing and Investment KPSC is a company engaged in the provision of consumer instalment credit facilities and investments. The Group has four operating segments: instalment credit, investments, financial brokerage and real estate. It offers credit facilities to purchase consumer products, brokerage, investment platforms, third-party portfolio management services, and margin trading. It generates the majority of the revenue from the Investments segment. The Group'ss activities, assets and liabilities are carried out and located in Kuwait, GCC, Middle East, USA and Europe.
16GF Score
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