Ajial Real Estate & Entertainment Co (KUW:AREEC) ROIC %: 2.41% (As of Mar. 2026)


KUW:AREEC Ajial Real Estate & Entertainment Co KUW:AREEC
46 GF Score
Price KWD0.31
GF Value KWD0.35
Valuation Modestly Undervalued
! 6 Warning Signs
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What is Ajial Real Estate & Entertainment Co ROIC %?

Ajial Real Estate & Entertainment Co KUW:AREEC 46 ROIC % is 2.41% as of Mar. 2026. GuruFocus rates KUW:AREEC with a GF Score™ of 46/100 and a GF Value™ of KWD0.35 (Modestly Undervalued). The stock has 6 warning signs investors should review.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Ajial Real Estate & Entertainment Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.41%.

As of today (2026-07-05), Ajial Real Estate & Entertainment Co's WACC % is 8.62%. Ajial Real Estate & Entertainment Co's ROIC % is 2.66% (calculated using TTM income statement data). Ajial Real Estate & Entertainment Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Ajial Real Estate & Entertainment Co  (KUW:AREEC) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Ajial Real Estate & Entertainment Co's WACC % is 8.62%. Ajial Real Estate & Entertainment Co's ROIC % is 2.66% (calculated using TTM income statement data). Ajial Real Estate & Entertainment Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Ajial Real Estate & Entertainment Co ROIC % Related Terms

Ajial Real Estate & Entertainment Co ROIC % Historical Data

* Premium members only.

The historical data trend for Ajial Real Estate & Entertainment Co's ROIC % 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.

Ajial Real Estate & Entertainment Co ROIC % Chart

Ajial Real Estate & Entertainment Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.10 0.32 1.81 2.47 2.62

Ajial Real Estate & Entertainment Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.31 2.82 2.89 2.52 2.41

KUW:AREEC vs CBRE, BEKE, JLL: ROIC % Comparison

For the Real Estate Services subindustry, Ajial Real Estate & Entertainment Co's ROIC %, along with its competitors' market caps and ROIC % 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.

Ajial Real Estate & Entertainment Co ROIC % vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Ajial Real Estate & Entertainment Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Ajial Real Estate & Entertainment Co's ROIC % falls into.


KUW:AREEC
46GF Score
Ajial Real Estate & Entertainment Co KUW:AREEC
ROIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Ajial Real Estate & Entertainment Co ROIC % Calculation

Ajial Real Estate & Entertainment Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2025 is calculated as:

ROIC % (A: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2024 ) + Invested Capital (A: Dec. 2025 ))/ count )
=4.668 * ( 1 - 3.66% )/( (171.285 + 172.482)/ 2 )
=4.4971512/171.8835
=2.62 %

where

Invested Capital(A: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=174.884 - 1.83 - ( 4.154 - max(0, 2.739 - 4.508+4.154))
=171.285

Invested Capital(A: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=177.412 - 1.858 - ( 5.83 - max(0, 3.057 - 6.129+5.83))
=172.482

Ajial Real Estate & Entertainment Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2026 is calculated as:

ROIC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=4.288 * ( 1 - 3.74% )/( (172.482 + 170.126)/ 2 )
=4.1276288/171.304
=2.41 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=177.412 - 1.858 - ( 5.83 - max(0, 3.057 - 6.129+5.83))
=172.482

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=178.527 - 6.716 - ( 8.025 - max(0, 6.716 - 8.401+8.025))
=170.126

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of 2.41% mean?
Ajial Real Estate & Entertainment Co (KUW:AREEC) has a ROIC % of 2.41% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Ajial Real Estate & Entertainment Co and its competitors.
Is Ajial Real Estate & Entertainment Co's ROIC % too high?
Ajial Real Estate & Entertainment Co's current ROIC % is 2.41%. The Real Estate industry median ROIC % is 2.19. Ajial Real Estate & Entertainment Co's value of 2.41% is 10% above this industry median. Overall, Ajial Real Estate & Entertainment Co has a GF Score™ of 46/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ajial Real Estate & Entertainment Co's ROIC % compare to CBRE and BEKE?
Ajial Real Estate & Entertainment Co's ROIC % of 2.41% can be compared against companies in the Real Estate industry. The industry median ROIC % is 2.19. Ajial Real Estate & Entertainment Co's value of 2.41% is 10% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Real Estate company?
The median ROIC % among Real Estate companies is 2.19, based on 1,754 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ajial Real Estate & Entertainment Co's current ROIC % of 2.41% is 10% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Ajial Real Estate & Entertainment Co and its competitors. For the Real Estate industry, the median ROIC % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ajial Real Estate & Entertainment Co's current ROIC % is 2.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ajial Real Estate & Entertainment Co stock overvalued right now?
Based on GuruFocus' analysis, Ajial Real Estate & Entertainment Co (KUW:AREEC) is currently considered Modestly Undervalued. The stock's GF Value™ is KWD0.35, compared to a current price of KWD0.31 — trading 12.9% below its estimated fair value. The current ROIC % is 2.41% and 10% above the Real Estate industry median of 2.19. Ajial Real Estate & Entertainment Co's overall GF Score™ is 46/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Ajial Real Estate & Entertainment Co (KUW:AREEC), the current ROIC % is 2.41% 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 Ajial Real Estate & Entertainment Co (KUW:AREEC) Overvalued in 2026?

Based on GuruFocus' analysis, Ajial Real Estate & Entertainment Co stock appears to be undervalued. The current stock price of KWD0.31 is trading 12.9% below its estimated GF Value™ of KWD0.35. GuruFocus considers Ajial Real Estate & Entertainment Co to be Modestly Undervalued.

Key valuation signals for KUW:AREEC:

  • ROIC %: 2.41%
  • GF Value™: KWD0.35 vs. price of KWD0.31 (12.9% below fair value)
  • GF Score™: 46/100 with 6 warning signs
  • Industry Position: 10% above the Real Estate median

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

Ajial Real Estate & Entertainment Co Business Description

Address Hawally, Block 5, Beirut Street, Al-Andalus Complex, 16th Floor, P.O. Box 44301, Hawally, KWT, 32058
Ajial Real Estate & Entertainment Co is engaged in all real estate activities including buying and selling lands, real estate and renting and leasing thereof inside and outside Kuwait. It establishes and maintains buildings and real estate projects including establishment of residential complexes thereof and commercial markets and entertainment centres, touristic facilities and building special accommodations. The group has three operating segments: real estate, entertainment and investment. The majority of the revenue is derived from real estate segments that comprise investment, rental of and trading in real estate and construction or development of real estate for the sale in the ordinary course of business and other related real estate services.
46GF Score

Get the complete analysis for KUW:AREEC

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

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GF Value