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Saudi Azm for Communication and Information Technology Co (SAU:7211) 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 Azm for Communication and Information Technology Co ROE % Related Terms
Saudi Azm for Communication and Information Technology 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.
Saudi Azm for Communication and Information Technology Co ROE % Chart
Saudi Azm for Communication and Information Technology Co Annual Data
Trend
Jun21
Jun22
Jun23
Jun24
Jun25
ROE %
47.72
45.28
38.39
35.63
32.67
Saudi Azm for Communication and Information Technology Co Quarterly 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.
Saudi Azm for Communication and Information Technology Co ROE % vs Software 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.
Saudi Azm for Communication and Information Technology Co (SAU:7211) has a ROE % of 28.31% 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 Azm for Communication and Information Technology Co and its competitors. This is 26% below median its historical median of 38.39. Over the past decade, Saudi Azm for Communication and Information Technology Co's ROE % has ranged from 31.86 to 47.72. According to the industry distribution chart, Saudi Azm for Communication and Information Technology Co ranks #249 out of 2690 companies in the Software industry, placing it in the top 9.3%.
Is Saudi Azm for Communication and Information Technology Co's ROE % too high?
Saudi Azm for Communication and Information Technology Co's current ROE % of 28.31% is 26% below median its 10-year median of 38.39. Over the past 10 years, this metric has ranged from a low of 31.86 to a high of 47.72. The Software industry median ROE % is 4.78. Saudi Azm for Communication and Information Technology Co's value of 28.31% is 492.3% above this industry median. Based on the distribution chart, Saudi Azm for Communication and Information Technology Co ranks #249 out of 2690 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Saudi Azm for Communication and Information Technology Co has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Saudi Azm for Communication and Information Technology Co's ROE % compare to QH and SHOP?
According to the Software industry distribution chart, Saudi Azm for Communication and Information Technology Co ranks #249 out of 2690 companies for ROE %. This places Saudi Azm for Communication and Information Technology Co in the top 9% of its industry — outperforming the majority of peers. The industry median ROE % is 4.78. Saudi Azm for Communication and Information Technology Co's value of 28.31% is 492.3% above this benchmark. Historically, Saudi Azm for Communication and Information Technology Co's own ROE % has ranged from 31.86 to 47.72 over the past decade. While the company's 10-year median is 38.39 vs. the industry median of 4.78, Saudi Azm for Communication and Information Technology 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 Software company?
The median ROE % among Software companies is 4.78, based on 2,690 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 Azm for Communication and Information Technology Co's current ROE % of 28.31% is 492.3% 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 Saudi Azm for Communication and Information Technology Co and its competitors. For the Software industry, the median ROE % is 4.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Azm for Communication and Information Technology Co's current ROE % is 28.31%, which is 26% below median its own 10-year median of 38.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Azm for Communication and Information Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Azm for Communication and Information Technology Co (SAU:7211) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼29.41, compared to a current price of ﷼22.34 — trading 24% below its estimated fair value. The current ROE % is 28.31%, which is 26% below median its 10-year median of 38.39 and 492.3% above the Software industry median of 4.78. Saudi Azm for Communication and Information Technology Co's overall GF Score™ is 55/100 with 2 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 Azm for Communication and Information Technology Co (SAU:7211), the current ROE % is 28.31% 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 Azm for Communication and Information Technology Co (SAU:7211) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Azm for Communication and Information Technology Co stock appears to be undervalued.
The current stock price of ﷼22.34 is trading 24% below its estimated GF Value™ of ﷼29.41.
GuruFocus considers Saudi Azm for Communication and Information Technology Co to be Modestly Undervalued.
Key valuation signals for SAU:7211:
ROE %: 28.31% (26% below median its 10-year median of 38.39)
GF Value™: ﷼29.41 vs. price of ﷼22.34 (24% below fair value)
Industry Position: 492.3% above the Software median (#249 of 2690)
No single metric tells the full story. See the SAU:7211 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Azm for Communication and Information Technology Co aims at providing solutions to projects with qualitative impact in the fields of information technology and executive consulting. The company is principally engaged in the designing and programming special software, application development, providing management and control services of communication sale of wire and wireless equipment and devices, design User Experience and customer journey, repair and maintenance of personal and portable computers, providing senior management consulting services and information networks and research and development on technology.
55GF Score
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