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Natural Gas Distribution CoSAU:9516 -0.43%67 ROE % is 17.50% as of Dec. 2025, which is 170% above its 10-year median of 6.48. GuruFocus rates SAU:9516 with a GF Score™ of 67/100 and a GF Value™ of ﷼79.58 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 503 Utilities - Regulated companies, Natural Gas Distribution Co ranks better than 72.17% on this metric.
The historical rank and industry rank for Natural Gas Distribution Co's ROE % or its related term are showing as below:
SAU:9516'
s ROE % Range Over the Past 10 Years
Min: 4.96 Med: 6.48 Max: 12.56
Current: 12.56
During the past 6 years, Natural Gas Distribution Co's highest ROE % was 12.56%. The lowest was 4.96%. And the median was 6.48%.
SAU:9516's ROE % is ranked better than 72.17% of 503
companies
in the Utilities - Regulated industry
Industry Median: 8.69
vs SAU:9516: 12.56
Natural Gas Distribution Co (SAU:9516) 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 two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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.
* 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 Utilities - Regulated Gas subindustry, Natural Gas Distribution 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.
Natural Gas Distribution Co ROE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Natural Gas Distribution Co's ROE % distribution charts can be found below:
* The bar in red indicates where Natural Gas Distribution 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 two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Natural Gas Distribution Co (SAU:9516) has a ROE % of 17.50% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Natural Gas Distribution Co and its competitors. This is 170% above median its historical median of 6.48. Over the past decade, Natural Gas Distribution Co's ROE % has ranged from 4.96 to 12.56. According to the industry distribution chart, Natural Gas Distribution Co ranks #140 out of 503 companies in the Utilities - Regulated industry, placing it in the top 27.8%.
Is Natural Gas Distribution Co's ROE % too high?
Natural Gas Distribution Co's current ROE % of 17.50% is 170% above median its 10-year median of 6.48. Over the past 10 years, this metric has ranged from a low of 4.96 to a high of 12.56. The Utilities - Regulated industry median ROE % is 8.69. Natural Gas Distribution Co's value of 17.50% is 101.4% above this industry median. Based on the distribution chart, Natural Gas Distribution Co ranks #140 out of 503 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Natural Gas Distribution Co has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Natural Gas Distribution Co's ROE % compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Natural Gas Distribution Co ranks #140 out of 503 companies for ROE %. This puts Natural Gas Distribution Co in the upper half of its industry. The industry median ROE % is 8.69. Natural Gas Distribution Co's value of 17.50% is 101.4% above this benchmark. Historically, Natural Gas Distribution Co's own ROE % has ranged from 4.96 to 12.56 over the past decade. While the company's 10-year median is 6.48 vs. the industry median of 8.69, Natural Gas Distribution 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 an Utilities - Regulated company?
The median ROE % among Utilities - Regulated companies is 8.69, based on 503 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. Natural Gas Distribution Co's current ROE % of 17.50% is 101.4% 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 Natural Gas Distribution Co and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natural Gas Distribution Co's current ROE % is 17.50%, which is 170% above median its own 10-year median of 6.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natural Gas Distribution Co stock overvalued right now?
Based on GuruFocus' analysis, Natural Gas Distribution Co (SAU:9516) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼79.58, compared to a current price of ﷼23.40 — trading 70.6% below its estimated fair value. The current ROE % is 17.50%, which is 170% above median its 10-year median of 6.48 and 101.4% above the Utilities - Regulated industry median of 8.69. Natural Gas Distribution Co's overall GF Score™ is 67/100 with 3 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 Natural Gas Distribution Co (SAU:9516), the current ROE % is 17.50% 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.
Is Natural Gas Distribution Co (SAU:9516) Overvalued in 2026?
Based on GuruFocus' analysis, Natural Gas Distribution Co stock appears to be undervalued.
The current stock price of ﷼23.40 is trading 70.6% below its estimated GF Value™ of ﷼79.58.
GuruFocus considers Natural Gas Distribution Co to be Significantly Undervalued.
Key valuation signals for SAU:9516:
ROE %: 17.50% (170% above median its 10-year median of 6.48)
GF Value™: ﷼79.58 vs. price of ﷼23.40 (70.6% below fair value)
Industry Position: 101.4% above the Utilities - Regulated median (#140 of 503)
No single metric tells the full story. See the SAU:9516 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natural Gas Distribution Co is engaged in the operation and maintenance of natural gas networks in the second industrial city and industrial cities in the Kingdom. The company's business is to supply the factories located in the second industrial city in Riyadh. It is supplied with natural gas from Saudi Aramco through a main pipeline.
67GF Score
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