ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Theeb Car Rental Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 6.59%.
As of today (2026-07-09), Theeb Car Rental Co's WACC % is 7.73%. Theeb Car Rental Co's ROIC % is 7.61% (calculated using TTM income statement data).
Theeb Car Rental Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Theeb Car Rental Co (SAU:4261) 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, Theeb Car Rental Co's WACC % is 7.73%. Theeb Car Rental Co's ROIC % is 7.61% (calculated using TTM income statement data).
Theeb Car Rental 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.
Theeb Car Rental Co ROIC % Related Terms
Theeb Car Rental Co ROIC % Historical Data
* Premium members only.
The historical data trend for Theeb Car Rental 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.
For the Rental & Leasing Services subindustry, Theeb Car Rental 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.
Theeb Car Rental Co ROIC % vs Business Services Industry
For the Business Services industry and Industrials sector, Theeb Car Rental Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Theeb Car Rental Co's ROIC % falls into.
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.
Theeb Car Rental Co (SAU:4261) has a ROIC % of 6.59% 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 Theeb Car Rental Co and its competitors.
Is Theeb Car Rental Co's ROIC % too high?
Theeb Car Rental Co's current ROIC % is 6.59%. The Business Services industry median ROIC % is 5.96. Theeb Car Rental Co's value of 6.59% is 10.6% above this industry median. Overall, Theeb Car Rental Co has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Theeb Car Rental Co's ROIC % compare to URI and SUNB?
Theeb Car Rental Co's ROIC % of 6.59% can be compared against companies in the Business Services industry. The industry median ROIC % is 5.96. Theeb Car Rental Co's value of 6.59% is 10.6% 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 Business Services company?
The median ROIC % among Business Services companies is 5.96, based on 1,074 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. Theeb Car Rental Co's current ROIC % of 6.59% is 10.6% 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 Theeb Car Rental Co and its competitors. For the Business Services industry, the median ROIC % is 5.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Theeb Car Rental Co's current ROIC % is 6.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Theeb Car Rental Co stock overvalued right now?
Based on GuruFocus' analysis, Theeb Car Rental Co (SAU:4261) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼60.44, compared to a current price of ﷼23.06 — trading 61.8% below its estimated fair value. The current ROIC % is 6.59% and 10.6% above the Business Services industry median of 5.96. Theeb Car Rental Co's overall GF Score™ is 67/100 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 Theeb Car Rental Co (SAU:4261), the current ROIC % is 6.59% 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 Theeb Car Rental Co (SAU:4261) Overvalued in 2026?
Based on GuruFocus' analysis, Theeb Car Rental Co stock appears to be undervalued.
The current stock price of ﷼23.06 is trading 61.8% below its estimated GF Value™ of ﷼60.44.
GuruFocus considers Theeb Car Rental Co to be Possible Value Trap.
Key valuation signals for SAU:4261:
ROIC %: 6.59%
GF Value™: ﷼60.44 vs. price of ﷼23.06 (61.8% below fair value)
Industry Position: 10.6% above the Business Services median
No single metric tells the full story. See the SAU:4261 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Theeb Car Rental Co is engaged in car rental and leasing. The company operates in three segments, namely: Short-term lease, Long-term lease, and Car sales. The short-term lease segment represents activities involving the leasing of cars to customers under short-term rental arrangements (daily and monthly). The long-term lease segment represents activities involving the leasing of cars to customers under medium to longer-term operating lease arrangements. Car sales represent the sales of vehicles that were previously held as part of the lease or rental fleet. The company derives the key revenue from the long-term lease segment.
67GF Score
Get the complete analysis for SAU:4261
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SAU:4261 has been successfully added to your 
