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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 %. Alkhaleej Training and Education Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.27%.
As of today (2026-07-17), Alkhaleej Training and Education Co's WACC % is 9.56%. Alkhaleej Training and Education Co's ROIC % is 2.65% (calculated using TTM income statement data).
Alkhaleej Training and Education Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Alkhaleej Training and Education Co (SAU:4290) 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, Alkhaleej Training and Education Co's WACC % is 9.56%. Alkhaleej Training and Education Co's ROIC % is 2.65% (calculated using TTM income statement data).
Alkhaleej Training and Education 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.
Alkhaleej Training and Education Co ROIC % Related Terms
Alkhaleej Training and Education Co 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.
For the Education & Training Services subindustry, Alkhaleej Training and Education 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.
Alkhaleej Training and Education Co ROIC % vs Education Industry
For the Education industry and Consumer Defensive sector, Alkhaleej Training and Education Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Alkhaleej Training and Education 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.
Alkhaleej Training and Education Co (SAU:4290) has a ROIC % of 2.27% 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 Alkhaleej Training and Education Co and its competitors.
Is Alkhaleej Training and Education Co's ROIC % too high?
Alkhaleej Training and Education Co's current ROIC % is 2.27%. The Education industry median ROIC % is 5.04. Alkhaleej Training and Education Co's value of 2.27% is 55% below this industry median. Overall, Alkhaleej Training and Education Co has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Alkhaleej Training and Education Co's ROIC % compare to EDU and TAL?
Alkhaleej Training and Education Co's ROIC % of 2.27% can be compared against companies in the Education industry. The industry median ROIC % is 5.04. Alkhaleej Training and Education Co's value of 2.27% is 55% 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 an Education company?
The median ROIC % among Education companies is 5.04, based on 259 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. Alkhaleej Training and Education Co's current ROIC % of 2.27% is 55% 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 Alkhaleej Training and Education Co and its competitors. For the Education industry, the median ROIC % is 5.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alkhaleej Training and Education Co's current ROIC % is 2.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alkhaleej Training and Education Co stock overvalued right now?
Based on GuruFocus' analysis, Alkhaleej Training and Education Co (SAU:4290) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼30.47, compared to a current price of ﷼14.17 — trading 53.5% below its estimated fair value. The current ROIC % is 2.27% and 55% below the Education industry median of 5.04. Alkhaleej Training and Education Co's overall GF Score™ is 56/100 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 Alkhaleej Training and Education Co (SAU:4290), the current ROIC % is 2.27% 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 Alkhaleej Training and Education Co (SAU:4290) Overvalued in 2026?
Based on GuruFocus' analysis, Alkhaleej Training and Education Co stock appears to be undervalued.
The current stock price of ﷼14.17 is trading 53.5% below its estimated GF Value™ of ﷼30.47.
GuruFocus considers Alkhaleej Training and Education Co to be Possible Value Trap.
Key valuation signals for SAU:4290:
ROIC %: 2.27%
GF Value™: ﷼30.47 vs. price of ﷼14.17 (53.5% below fair value)
No single metric tells the full story. See the SAU:4290 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alkhaleej Training and Education Co Business Description
Alkhaleej Training and Education Co and its subsidiaries are engaged in operating schools for primary and secondary education with an international curriculum, IT & Computer training institutes, teaching languages and communication skills institutes, providing high management consulting services and integrated office administrative services activities, and establishing and operating call centres. The Group's operating segments are: Training, Universities, Management projects and others, Call centre, and Schools. Maximum revenue is generated from the Call Centre segment, which is engaged in managing and operating customer service centres via telephone and digital technologies for several government and corporate customers. Geographically, the Group derives its key revenue from Saudi Arabia.
56GF Score
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