ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Dr Sulaiman Al Habib Medical Services Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 10.86%.
As of today (2026-07-04), Dr Sulaiman Al Habib Medical Services Group's WACC % is 11.06%. Dr Sulaiman Al Habib Medical Services Group's ROIC % is 12.93% (calculated using TTM income statement data).
Dr Sulaiman Al Habib Medical Services Group 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.
Dr Sulaiman Al Habib Medical Services Group (SAU:4013) 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, Dr Sulaiman Al Habib Medical Services Group's WACC % is 11.06%. Dr Sulaiman Al Habib Medical Services Group's ROIC % is 12.93% (calculated using TTM income statement data).
Dr Sulaiman Al Habib Medical Services Group 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.
Dr Sulaiman Al Habib Medical Services Group ROIC % Related Terms
Dr Sulaiman Al Habib Medical Services Group 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.
Dr Sulaiman Al Habib Medical Services Group ROIC % Chart
Dr Sulaiman Al Habib Medical Services Group Annual Data
For the Medical Care Facilities subindustry, Dr Sulaiman Al Habib Medical Services Group'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.
Dr Sulaiman Al Habib Medical Services Group ROIC % vs Healthcare Providers & Services 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.
Dr Sulaiman Al Habib Medical Services Group (SAU:4013) has a ROIC % of 10.86% 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 Dr Sulaiman Al Habib Medical Services Group and its competitors.
Is Dr Sulaiman Al Habib Medical Services Group's ROIC % too high?
Dr Sulaiman Al Habib Medical Services Group's current ROIC % is 10.86%. The Healthcare Providers & Services industry median ROIC % is 3.08. Dr Sulaiman Al Habib Medical Services Group's value of 10.86% is 253.2% above this industry median. Overall, Dr Sulaiman Al Habib Medical Services Group has a GF Score™ of 90/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dr Sulaiman Al Habib Medical Services Group's ROIC % compare to HCA and THC?
Dr Sulaiman Al Habib Medical Services Group's ROIC % of 10.86% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.08. Dr Sulaiman Al Habib Medical Services Group's value of 10.86% is 253.2% 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 Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.08, based on 670 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. Dr Sulaiman Al Habib Medical Services Group's current ROIC % of 10.86% is 253.2% 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 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 Dr Sulaiman Al Habib Medical Services Group and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dr Sulaiman Al Habib Medical Services Group's current ROIC % is 10.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dr Sulaiman Al Habib Medical Services Group stock overvalued right now?
Based on GuruFocus' analysis, Dr Sulaiman Al Habib Medical Services Group (SAU:4013) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼395.43, compared to a current price of ﷼214.10 — trading 45.9% below its estimated fair value. The current ROIC % is 10.86% and 253.2% above the Healthcare Providers & Services industry median of 3.08. Dr Sulaiman Al Habib Medical Services Group's overall GF Score™ is 90/100 with 4 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 Dr Sulaiman Al Habib Medical Services Group (SAU:4013), the current ROIC % is 10.86% 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 Dr Sulaiman Al Habib Medical Services Group (SAU:4013) Overvalued in 2026?
Based on GuruFocus' analysis, Dr Sulaiman Al Habib Medical Services Group stock appears to be undervalued.
The current stock price of ﷼214.10 is trading 45.9% below its estimated GF Value™ of ﷼395.43.
GuruFocus considers Dr Sulaiman Al Habib Medical Services Group to be Significantly Undervalued.
Key valuation signals for SAU:4013:
ROIC %: 10.86%
GF Value™: ﷼395.43 vs. price of ﷼214.10 (45.9% below fair value)
Industry Position: 253.2% above the Healthcare Providers & Services median
No single metric tells the full story. See the SAU:4013 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dr Sulaiman Al Habib Medical Services Group Business Description
Dr Sulaiman Al Habib Medical Services Group provides private health and ancillary services in the Kingdom and the region through the establishment, management, and operation of hospitals, medical complexes, day surgery centers, pharmaceutical facilities, and other ancillary areas, including home health care, specialized laboratories, technology and information systems, facility maintenance, tele-medicine, revenue cycle management, medical equipment maintenance, and real estate activity. The company reports in three segments: Hospitals and Healthcare Facilities, Pharmacies, and HMG Solutions and Others. The majority of revenue comes from the Hospitals and Healthcare Facilities segment.
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