Saudi Ceramic CoSAU:2040 +1.14%63 ROE % is 5.82% as of Mar. 2026, which is 619% above its 10-year median of 0.81. GuruFocus rates SAU:2040 with a GF Score™ of 63/100 and a GF Value™ of ﷼31.64 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,737 Construction companies, Saudi Ceramic Co ranks better than 69.31% on this metric.
The historical rank and industry rank for Saudi Ceramic Co's ROE % or its related term are showing as below:
SAU:2040'
s ROE % Range Over the Past 10 Years
Min: -14.48 Med: 0.81 Max: 14.81
Current: 11.98
During the past 13 years, Saudi Ceramic Co's highest ROE % was 14.81%. The lowest was -14.48%. And the median was 0.81%.
SAU:2040's ROE % is ranked better than 69.31% of 1737
companies
in the Construction industry
Industry Median: 6.72
vs SAU:2040: 11.98
Saudi Ceramic Co (SAU:2040) 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.
Saudi Ceramic Co ROE % Related Terms
Saudi Ceramic Co ROE % Historical Data
* Premium members only.
The historical data trend for Saudi Ceramic Co's ROE % 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.
For the Building Products & Equipment subindustry, Saudi Ceramic 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.
Saudi Ceramic Co ROE % vs Construction Industry
For the Construction industry and Industrials sector, Saudi Ceramic Co's ROE % distribution charts can be found below:
* The bar in red indicates where Saudi Ceramic Co's ROE % falls into.
* 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.
Saudi Ceramic Co (SAU:2040) has a ROE % of 5.82% 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 Saudi Ceramic Co and its competitors. This is 619% above median its historical median of 0.81. According to the industry distribution chart, Saudi Ceramic Co ranks #533 out of 1737 companies in the Construction industry, placing it in the top 30.7%.
Is Saudi Ceramic Co's ROE % too high?
Saudi Ceramic Co's current ROE % of 5.82% is 619% above median its 10-year median of 0.81. The Construction industry median ROE % is 6.72. Saudi Ceramic Co's value of 5.82% is 13.4% below this industry median. Based on the distribution chart, Saudi Ceramic Co ranks #533 out of 1737 companies in the Construction industry, which is above the industry midpoint. Overall, Saudi Ceramic Co has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Saudi Ceramic Co's ROE % compare to TT and JCI?
According to the Construction industry distribution chart, Saudi Ceramic Co ranks #533 out of 1737 companies for ROE %. This puts Saudi Ceramic Co in the upper half of its industry. The industry median ROE % is 6.72. Saudi Ceramic Co's value of 5.82% is 13.4% below this benchmark. While the company's 10-year median is 0.81 vs. the industry median of 6.72, Saudi Ceramic Co 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 a Construction company?
The median ROE % among Construction companies is 6.72, based on 1,737 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. Saudi Ceramic Co's current ROE % of 5.82% is 13.4% 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 Saudi Ceramic Co and its competitors. For the Construction industry, the median ROE % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Ceramic Co's current ROE % is 5.82%, which is 619% above median its own 10-year median of 0.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Ceramic Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Ceramic Co (SAU:2040) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼31.64, compared to a current price of ﷼26.70 — trading 15.6% below its estimated fair value. The current ROE % is 5.82%, which is 619% above median its 10-year median of 0.81 and 13.4% below the Construction industry median of 6.72. Saudi Ceramic Co's overall GF Score™ is 63/100 with 7 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 Saudi Ceramic Co (SAU:2040), the current ROE % is 5.82% 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 Saudi Ceramic Co (SAU:2040) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Ceramic Co stock appears to be undervalued.
The current stock price of ﷼26.70 is trading 15.6% below its estimated GF Value™ of ﷼31.64.
GuruFocus considers Saudi Ceramic Co to be Modestly Undervalued.
Key valuation signals for SAU:2040:
ROE %: 5.82% (619% above median its 10-year median of 0.81)
GF Value™: ﷼31.64 vs. price of ﷼26.70 (15.6% below fair value)
Industry Position: 13.4% below the Construction median (#533 of 1737)
No single metric tells the full story. See the SAU:2040 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Ceramic Co is engaged in the production and sale of ceramic products, water heaters, and related components. The company is also involved in the import of related machinery, equipment, and other accessories. It has three reporting segments: the Ceramic Tiles and Sanitary Ware segment, which generates the maximum revenue and is involved in the manufacturing and distribution of ceramic and porcelain tiles and sanitary ware items; the Water Heaters segment, which is engaged in the manufacturing and distribution of electric water heaters; and the Ceramic Pipes segment, which is involved in the manufacturing and distribution of clay pipes for sanitary ware and sewage networks. The company generates the majority of its revenue from the local market.
63GF Score
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