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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Alkhorayef Water & Power Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 10.90%.
As of today (2026-07-29), Alkhorayef Water & Power Technologies's WACC % is 11.48%. Alkhorayef Water & Power Technologies's ROIC % is 11.86% (calculated using TTM income statement data).
Alkhorayef Water & Power Technologies 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.
Alkhorayef Water & Power Technologies (SAU:2081) 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, Alkhorayef Water & Power Technologies's WACC % is 11.48%. Alkhorayef Water & Power Technologies's ROIC % is 11.86% (calculated using TTM income statement data).
Alkhorayef Water & Power Technologies 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.
Alkhorayef Water & Power Technologies ROIC % Related Terms
Alkhorayef Water & Power Technologies ROIC % 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.
Alkhorayef Water & Power Technologies ROIC % Chart
For the Utilities - Regulated Water subindustry, Alkhorayef Water & Power Technologies'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.
Alkhorayef Water & Power Technologies ROIC % vs Utilities - Regulated Industry
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.
Alkhorayef Water & Power Technologies (SAU:2081) has a ROIC % of 10.90% 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 Alkhorayef Water & Power Technologies and its competitors.
Is Alkhorayef Water & Power Technologies' ROIC % too high?
Alkhorayef Water & Power Technologies' current ROIC % is 10.90%. The Utilities - Regulated industry median ROIC % is 4.16. Alkhorayef Water & Power Technologies' value of 10.90% is 162% above this industry median. Overall, Alkhorayef Water & Power Technologies has a GF Score™ of 92/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Alkhorayef Water & Power Technologies' ROIC % compare to AWK and WTRG?
Alkhorayef Water & Power Technologies' ROIC % of 10.90% can be compared against companies in the Utilities - Regulated industry. The industry median ROIC % is 4.16. Alkhorayef Water & Power Technologies' value of 10.90% is 162% 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 an Utilities - Regulated company?
The median ROIC % among Utilities - Regulated companies is 4.16, based on 500 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. Alkhorayef Water & Power Technologies's current ROIC % of 10.90% is 162% 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 Alkhorayef Water & Power Technologies and its competitors. For the Utilities - Regulated industry, the median ROIC % is 4.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alkhorayef Water & Power Technologies's current ROIC % is 10.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alkhorayef Water & Power Technologies stock overvalued right now?
Based on GuruFocus' analysis, Alkhorayef Water & Power Technologies (SAU:2081) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼199.35, compared to a current price of ﷼103.50 — trading 48.1% below its estimated fair value. The current ROIC % is 10.90% and 162% above the Utilities - Regulated industry median of 4.16. Alkhorayef Water & Power Technologies' overall GF Score™ is 92/100 with 8 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 Alkhorayef Water & Power Technologies (SAU:2081), the current ROIC % is 10.90% 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 Alkhorayef Water & Power Technologies (SAU:2081) Overvalued in 2026?
Based on GuruFocus' analysis, Alkhorayef Water & Power Technologies stock appears to be undervalued.
The current stock price of ﷼103.50 is trading 48.1% below its estimated GF Value™ of ﷼199.35.
GuruFocus considers Alkhorayef Water & Power Technologies to be Possible Value Trap.
Key valuation signals for SAU:2081:
ROIC %: 10.90%
GF Value™: ﷼199.35 vs. price of ﷼103.50 (48.1% below fair value)
Industry Position: 162% above the Utilities - Regulated median
No single metric tells the full story. See the SAU:2081 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alkhorayef Water & Power Technologies Business Description
Alkhorayef Water & Power Technologies is engaged in contracting for buildings, roads, industrial, mechanical, marine and electrical works, cleaning of buildings and cities, operation and maintenance of medical centers, hospitals, airports, and waste disposal, and environmental pollution control. Its business consists of three business divisions: Water segment, Wastewater segment, and the Integrated water solutions segment. The company derives maximum revenue from the Water Segment. The Water Segment of the company represents project and O&M services for Deep waterwalls, Water treatment plants, Water distribution networks, and Firework networks. Geographically, the company operates only in Saudi Arabia.
92GF Score
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