Edarat Communication And Information Technology Co (SAU:9557) ROE %: 49.25% (As of Dec. 2025) — Near Median

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SAU:9557 Edarat Communication And Information Technology Co SAU:9557
51 GF Score
Price ﷼274.20
GF Value ﷼251.00
Valuation Fairly Valued
! 4 Warning Signs
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What is Edarat Communication And Information Technology Co ROE %?

Edarat Communication And Information Technology Co SAU:9557 +0.59% 51 ROE % is 49.25% as of Dec. 2025, which is 2% below its 10-year median of 50.19. GuruFocus rates SAU:9557 with a GF Score™ of 51/100 and a GF Value™ of ﷼251.00 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,690 Software companies, Edarat Communication And Information Technology Co ranks better than 94.91% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Edarat Communication And Information Technology Co's annualized net income for the quarter that ended in Dec. 2025 was ﷼42.2 Mil. Edarat Communication And Information Technology Co's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was ﷼85.7 Mil. Therefore, Edarat Communication And Information Technology Co's annualized ROE % for the quarter that ended in Dec. 2025 was 49.25%.

The historical rank and industry rank for Edarat Communication And Information Technology Co's ROE % or its related term are showing as below:

SAU:9557' s ROE % Range Over the Past 10 Years
Min: 46.01   Med: 50.19   Max: 73.33
Current: 46.54

During the past 5 years, Edarat Communication And Information Technology Co's highest ROE % was 73.33%. The lowest was 46.01%. And the median was 50.19%.

SAU:9557's ROE % is ranked better than
94.91% of 2690 companies
in the Software industry
Industry Median: 4.79 vs SAU:9557: 46.54

Edarat Communication And Information Technology Co  (SAU:9557) 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:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=42.196/85.6825
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(42.196 / 234.414)*(234.414 / 143.977)*(143.977 / 85.6825)
=Net Margin %*Asset Turnover*Equity Multiplier
=18 %*1.6281*1.6804
=ROA %*Equity Multiplier
=29.31 %*1.6804
=49.25 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=42.196/85.6825
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (42.196 / 45.466) * (45.466 / 47.774) * (47.774 / 234.414) * (234.414 / 143.977) * (143.977 / 85.6825)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9281 * 0.9517 * 20.38 % * 1.6281 * 1.6804
=49.25 %

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.


Edarat Communication And Information Technology Co ROE % Related Terms


Edarat Communication And Information Technology Co ROE % Historical Data

* Premium members only.

The historical data trend for Edarat Communication And Information Technology 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.

Edarat Communication And Information Technology Co ROE % Chart

Edarat Communication And Information Technology Co Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
50.19 73.33 57.43 48.40 46.01

Edarat Communication And Information Technology Co Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROE % Get a 7-Day Free Trial Premium Member Only 52.95 52.25 46.49 43.81 49.25

SAU:9557 vs IBM, ACN, FISV: ROE % Comparison

For the Information Technology Services subindustry, Edarat Communication And Information Technology 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.


Edarat Communication And Information Technology Co ROE % vs Software Industry

For the Software industry and Technology sector, Edarat Communication And Information Technology Co's ROE % distribution charts can be found below:

* The bar in red indicates where Edarat Communication And Information Technology Co's ROE % falls into.


SAU:9557
51GF Score
Edarat Communication And Information Technology Co SAU:9557
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Edarat Communication And Information Technology Co ROE % Calculation

Edarat Communication And Information Technology Co's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=36.341/( (62.882+95.082)/ 2 )
=36.341/78.982
=46.01 %

Edarat Communication And Information Technology Co's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Jun. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=42.196/( (76.283+95.082)/ 2 )
=42.196/85.6825
=49.25 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 49.25% mean?
Edarat Communication And Information Technology Co (SAU:9557) has a ROE % of 49.25% 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 Edarat Communication And Information Technology Co and its competitors. This is near median its historical median of 50.19. Over the past decade, Edarat Communication And Information Technology Co's ROE % has ranged from 46.01 to 73.33. According to the industry distribution chart, Edarat Communication And Information Technology Co ranks #137 out of 2690 companies in the Software industry, placing it in the top 5.1%.
Is Edarat Communication And Information Technology Co's ROE % too high?
Edarat Communication And Information Technology Co's current ROE % of 49.25% is near median its 10-year median of 50.19. Over the past 10 years, this metric has ranged from a low of 46.01 to a high of 73.33. The Software industry median ROE % is 4.79. Edarat Communication And Information Technology Co's value of 49.25% is 928.2% above this industry median. Based on the distribution chart, Edarat Communication And Information Technology Co ranks #137 out of 2690 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Edarat Communication And Information Technology Co has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Edarat Communication And Information Technology Co's ROE % compare to IBM and ACN?
According to the Software industry distribution chart, Edarat Communication And Information Technology Co ranks #137 out of 2690 companies for ROE %. This places Edarat Communication And Information Technology Co in the top 5% of its industry — outperforming the majority of peers. The industry median ROE % is 4.79. Edarat Communication And Information Technology Co's value of 49.25% is 928.2% above this benchmark. Historically, Edarat Communication And Information Technology Co's own ROE % has ranged from 46.01 to 73.33 over the past decade. While the company's 10-year median is 50.19 vs. the industry median of 4.79, Edarat 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 4.79, 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. Edarat Communication And Information Technology Co's current ROE % of 49.25% is 928.2% 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 Edarat Communication And Information Technology Co and its competitors. For the Software industry, the median ROE % is 4.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Edarat Communication And Information Technology Co's current ROE % is 49.25%, which is near median its own 10-year median of 50.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Edarat Communication And Information Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Edarat Communication And Information Technology Co (SAU:9557) is currently considered Fairly Valued. The stock's GF Value™ is ﷼251.00, compared to a current price of ﷼274.20 — trading 9.2% above its estimated fair value. The current ROE % is 49.25%, which is near median its 10-year median of 50.19 and 928.2% above the Software industry median of 4.79. Edarat Communication And Information Technology Co's overall GF Score™ is 51/100 with 4 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 Edarat Communication And Information Technology Co (SAU:9557), the current ROE % is 49.25% 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 Edarat Communication And Information Technology Co (SAU:9557) Overvalued in 2026?

Based on GuruFocus' analysis, Edarat Communication And Information Technology Co stock appears to be overvalued. The current stock price of ﷼274.20 is trading 9.2% above its estimated GF Value™ of ﷼251.00. GuruFocus considers Edarat Communication And Information Technology Co to be Fairly Valued.

Key valuation signals for SAU:9557:

  • ROE %: 49.25% (near median its 10-year median of 50.19)
  • GF Value™: ﷼251.00 vs. price of ﷼274.20 (9.2% above fair value)
  • GF Score™: 51/100 with 4 warning signs
  • Industry Position: 928.2% above the Software median (#137 of 2690)

No single metric tells the full story. See the SAU:9557 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Edarat Communication And Information Technology Co Business Description

Address King Abdulaziz Road, PO Box. No. 2414, Al Yasmeen District, Riyadh, SAU, 13322
Edarat Communication And Information Technology Co is engaged in the implementation of service contracts including provision of virtual network operator services, colocation services, system analysis, design and programming of software, providing management and monitoring of communications and information networks, establishing web hosting infrastructure and related services, data center services and related activities and subscriptions to provide cloud computing service. Its services include data center engineering, data center colocation, Edge AI, Edarat Marketplace, and cloud services. The company has two operating segments; Data Center Engineering Services and Cloud Service. It derives maximum revenue from Data Center Engineering Services segment.
51GF Score

Get the complete analysis for SAU:9557

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

﷼274.20
Price
﷼251.00
GF Value