Saleh Abdulaziz AlRashed & Sons Co (SAU:1324) ROIC %: 1.81% (As of Mar. 2026)

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SAU:1324 Saleh Abdulaziz AlRashed & Sons Co SAU:1324
11 GF Score
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What is Saleh Abdulaziz AlRashed & Sons Co ROIC %?

Saleh Abdulaziz AlRashed & Sons Co SAU:1324 +0.69% 11 ROIC % is 1.81% as of Mar. 2026. GuruFocus rates SAU:1324 with a GF Score™ of 11/100.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Saleh Abdulaziz AlRashed & Sons Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.81%.

As of today (2026-07-25), Saleh Abdulaziz AlRashed & Sons Co's WACC % is 0.00%. Saleh Abdulaziz AlRashed & Sons Co's ROIC % is 1.81% (calculated using TTM income statement data). Saleh Abdulaziz AlRashed & Sons Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


Saleh Abdulaziz AlRashed & Sons Co  (SAU:1324) 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, Saleh Abdulaziz AlRashed & Sons Co's WACC % is 0.00%. Saleh Abdulaziz AlRashed & Sons Co's ROIC % is 1.81% (calculated using TTM income statement data). Saleh Abdulaziz AlRashed & Sons Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


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.


Saleh Abdulaziz AlRashed & Sons Co ROIC % Related Terms


Saleh Abdulaziz AlRashed & Sons Co ROIC % Historical Data

* Premium members only.

The historical data trend for Saleh Abdulaziz AlRashed & Sons 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.

Saleh Abdulaziz AlRashed & Sons Co ROIC % Chart

Saleh Abdulaziz AlRashed & Sons Co Annual Data
Trend
ROIC %

Saleh Abdulaziz AlRashed & Sons Co Semi-Annual Data
Mar25 Mar26
ROIC % 0.00 1.81

SAU:1324 vs PWR, FIX, EME: ROIC % Comparison

For the Engineering & Construction subindustry, Saleh Abdulaziz AlRashed & Sons 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.


Saleh Abdulaziz AlRashed & Sons Co ROIC % vs Construction Industry

For the Construction industry and Industrials sector, Saleh Abdulaziz AlRashed & Sons Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Saleh Abdulaziz AlRashed & Sons Co's ROIC % falls into.


SAU:1324
11GF Score
Saleh Abdulaziz AlRashed & Sons Co SAU:1324
ROIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Saleh Abdulaziz AlRashed & Sons Co ROIC % Calculation

Saleh Abdulaziz AlRashed & Sons Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in . 20 is calculated as:

ROIC % (A: . 20 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: . 20 ) + Invested Capital (A: . 20 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

Saleh Abdulaziz AlRashed & Sons 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: Mar. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=10.824 * ( 1 - 12.48% )/( (0 + 524.629)/ 1 )
=9.4731648/524.629
=1.81 %

where

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))
=625.424 - 59.253 - ( 41.542 - max(0, 159.625 - 343.288+41.542))
=524.629

Note: The Operating Income data used here is one times the annual (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 1.81% mean?
Saleh Abdulaziz AlRashed & Sons Co (SAU:1324) has a ROIC % of 1.81% 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 Saleh Abdulaziz AlRashed & Sons Co and its competitors.
Is Saleh Abdulaziz AlRashed & Sons Co's ROIC % too high?
Saleh Abdulaziz AlRashed & Sons Co's current ROIC % is 1.81%. The Construction industry median ROIC % is 4.67. Saleh Abdulaziz AlRashed & Sons Co's value of 1.81% is 61.2% below this industry median. Overall, Saleh Abdulaziz AlRashed & Sons Co has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Saleh Abdulaziz AlRashed & Sons Co's ROIC % compare to PWR and FIX?
Saleh Abdulaziz AlRashed & Sons Co's ROIC % of 1.81% can be compared against companies in the Construction industry. The industry median ROIC % is 4.67. Saleh Abdulaziz AlRashed & Sons Co's value of 1.81% is 61.2% below 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 Construction company?
The median ROIC % among Construction companies is 4.67, based on 1,758 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. Saleh Abdulaziz AlRashed & Sons Co's current ROIC % of 1.81% is 61.2% 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 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 Saleh Abdulaziz AlRashed & Sons Co and its competitors. For the Construction industry, the median ROIC % is 4.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saleh Abdulaziz AlRashed & Sons Co's current ROIC % is 1.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saleh Abdulaziz AlRashed & Sons Co stock overvalued right now?
Saleh Abdulaziz AlRashed & Sons Co (SAU:1324) has a current ROIC % of 1.81%. The current ROIC % is 1.81% and 61.2% below the Construction industry median of 4.67. Saleh Abdulaziz AlRashed & Sons Co's overall GF Score™ is 11/100. 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 Saleh Abdulaziz AlRashed & Sons Co (SAU:1324), the current ROIC % is 1.81% 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.

Saleh Abdulaziz AlRashed & Sons Co Business Description

Address 19 Ibn Qasim Road, P.O.Box 4293, Al-Aziziya District, Riyadh, SAU, 11491
Saleh Abdulaziz AlRashed & Sons Co is a producer and supplier of essential aggregate materials, spare parts, and crushers, serving critical sectors such as infrastructure, roadworks, real estate development, and industrial projects. The group is leveraging a vertically integrated business model, which manages the full value chain, from raw material extraction, processing, to distribution, ensuring high-quality products, operational efficiency, and supply chain resilience. Its business segment are Construction material and Spare Parts that includes aggregates production, asphalt production, spare parts trading, crushers, distribution, and specialized industrial fabrication.
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