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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 %. Musharaka REIT's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 0.82%.
As of today (2026-07-19), Musharaka REIT's WACC % is 6.75%. Musharaka REIT's ROIC % is 1.39% (calculated using TTM income statement data).
Musharaka REIT earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Musharaka REIT (SAU:4335) 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, Musharaka REIT's WACC % is 6.75%. Musharaka REIT's ROIC % is 1.39% (calculated using TTM income statement data).
Musharaka REIT 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.
Musharaka REIT ROIC % Related Terms
Musharaka REIT ROIC % Historical Data
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The historical data trend for Musharaka REIT'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 REIT - Diversified subindustry, Musharaka REIT'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.
Musharaka REIT ROIC % vs REITs Industry
For the REITs industry and Real Estate sector, Musharaka REIT's ROIC % distribution charts can be found below:
* The bar in red indicates where Musharaka REIT's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-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.
Musharaka REIT (SAU:4335) has a ROIC % of 0.82% 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 Musharaka REIT and its competitors.
Is Musharaka REIT's ROIC % too high?
Musharaka REIT's current ROIC % is 0.82%. The REITs industry median ROIC % is 3.74. Musharaka REIT's value of 0.82% is 78.1% below this industry median. Overall, Musharaka REIT has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Musharaka REIT's ROIC % compare to VICI and WPC?
Musharaka REIT's ROIC % of 0.82% can be compared against companies in the REITs industry. The industry median ROIC % is 3.74. Musharaka REIT's value of 0.82% is 78.1% 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 a REITs company?
The median ROIC % among REITs companies is 3.74, based on 741 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. Musharaka REIT's current ROIC % of 0.82% is 78.1% 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 Musharaka REIT and its competitors. For the REITs industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Musharaka REIT's current ROIC % is 0.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Musharaka REIT stock overvalued right now?
Based on GuruFocus' analysis, Musharaka REIT (SAU:4335) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼4.38, compared to a current price of ﷼3.77 — trading 13.9% below its estimated fair value. The current ROIC % is 0.82% and 78.1% below the REITs industry median of 3.74. Musharaka REIT's overall GF Score™ is 62/100 with 7 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 Musharaka REIT (SAU:4335), the current ROIC % is 0.82% 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.
Is Musharaka REIT (SAU:4335) Overvalued in 2026?
Based on GuruFocus' analysis, Musharaka REIT stock appears to be undervalued.
The current stock price of ﷼3.77 is trading 13.9% below its estimated GF Value™ of ﷼4.38.
GuruFocus considers Musharaka REIT to be Modestly Undervalued.
Key valuation signals for SAU:4335:
ROIC %: 0.82%
GF Value™: ﷼4.38 vs. price of ﷼3.77 (13.9% below fair value)
No single metric tells the full story. See the SAU:4335 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Musharaka REIT is a closed-end real estate investment fund. Its investment objective is to invest in developing properties that are qualified to generate periodic rental income, while its dividend policy is to distribute at least 90 percent of the Fund's net profit as cash dividends to the unit holders annually. The fund invests in residential, commercial, industrial, and hospitality real estate assets located across different cities in Saudi Arabia.
62GF Score
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