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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 %. Al Ramz Real Estate Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 12.04%.
As of today (2026-08-09), Al Ramz Real Estate Co's WACC % is 9.37%. Al Ramz Real Estate Co's ROIC % is 12.04% (calculated using TTM income statement data).
Al Ramz Real Estate 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.
Al Ramz Real Estate Co (SAU:4327) 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, Al Ramz Real Estate Co's WACC % is 9.37%. Al Ramz Real Estate Co's ROIC % is 12.04% (calculated using TTM income statement data).
Al Ramz Real Estate 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.
* 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.
Al Ramz Real Estate Co ROIC % Chart
Al Ramz Real Estate Co Annual Data
Trend
Dec24
Dec25
ROIC %
8.58
12.04
Al Ramz Real Estate Co Semi-Annual Data
Dec24
Dec25
ROIC %
8.58
12.04
SAU:4327 vs CBRE, BEKE, JLL: ROIC % Comparison
For the Real Estate Services subindustry, Al Ramz Real Estate 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.
Al Ramz Real Estate Co ROIC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Al Ramz Real Estate Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Al Ramz Real Estate Co's ROIC % falls into.
Note:
The Operating Income data used here is one times the annual (Dec. 2025) 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.
Al Ramz Real Estate Co (SAU:4327) has a ROIC % of 12.04% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Al Ramz Real Estate Co and its competitors.
Is Al Ramz Real Estate Co's ROIC % too high?
Al Ramz Real Estate Co's current ROIC % is 12.04%. The Real Estate industry median ROIC % is 2.15. Al Ramz Real Estate Co's value of 12.04% is 460% above this industry median. Overall, Al Ramz Real Estate Co has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Al Ramz Real Estate Co's ROIC % compare to CBRE and BEKE?
Al Ramz Real Estate Co's ROIC % of 12.04% can be compared against companies in the Real Estate industry. The industry median ROIC % is 2.15. Al Ramz Real Estate Co's value of 12.04% is 460% 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 Real Estate company?
The median ROIC % among Real Estate companies is 2.15, 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. Al Ramz Real Estate Co's current ROIC % of 12.04% is 460% 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 Al Ramz Real Estate Co and its competitors. For the Real Estate industry, the median ROIC % is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al Ramz Real Estate Co's current ROIC % is 12.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Ramz Real Estate Co stock overvalued right now?
Al Ramz Real Estate Co (SAU:4327) has a current ROIC % of 12.04%. The current ROIC % is 12.04% and 460% above the Real Estate industry median of 2.15. Al Ramz Real Estate Co's overall GF Score™ is 17/100 with 3 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 Al Ramz Real Estate Co (SAU:4327), the current ROIC % is 12.04% as of Dec. 2025. 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.
Al Ramz Real Estate Co is engaged in comprehensive real estate development, managing each phase from land acquisition and concept development to design, construction, and marketing. The company's offerings include residential villas, commercial units, and mixed-use developments. Its field of activities includes: Construction, Accommodation and food services activities, Real Estate activities, Administrative and support services, Other service activities. The company derives its revenue from the sale of residential units and from Real estate development for others.
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