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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 %. Saudi Azm for Communication and Information Technology Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 16.98%.
As of today (2026-08-04), Saudi Azm for Communication and Information Technology Co's WACC % is 8.74%. Saudi Azm for Communication and Information Technology Co's ROIC % is 18.92% (calculated using TTM income statement data).
Saudi Azm for Communication and Information Technology 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.
Saudi Azm for Communication and Information Technology Co (SAU:7211) 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, Saudi Azm for Communication and Information Technology Co's WACC % is 8.74%. Saudi Azm for Communication and Information Technology Co's ROIC % is 18.92% (calculated using TTM income statement data).
Saudi Azm for Communication and Information Technology 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.
Saudi Azm for Communication and Information Technology Co ROIC % Related Terms
Saudi Azm for Communication and Information Technology 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.
Saudi Azm for Communication and Information Technology Co ROIC % Chart
Saudi Azm for Communication and Information Technology Co Annual Data
Trend
Jun21
Jun22
Jun23
Jun24
Jun25
ROIC %
30.26
25.67
20.64
18.07
16.49
Saudi Azm for Communication and Information Technology Co Quarterly Data
* 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.
Saudi Azm for Communication and Information Technology Co ROIC % vs Software 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.
Saudi Azm for Communication and Information Technology Co (SAU:7211) has a ROIC % of 16.98% 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 Saudi Azm for Communication and Information Technology Co and its competitors.
Is Saudi Azm for Communication and Information Technology Co's ROIC % too high?
Saudi Azm for Communication and Information Technology Co's current ROIC % is 16.98%. The Software industry median ROIC % is 3.10. Saudi Azm for Communication and Information Technology Co's value of 16.98% is 447.7% above this industry median. Overall, Saudi Azm for Communication and Information Technology Co has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Saudi Azm for Communication and Information Technology Co's ROIC % compare to QH and SHOP?
Saudi Azm for Communication and Information Technology Co's ROIC % of 16.98% can be compared against companies in the Software industry. The industry median ROIC % is 3.10. Saudi Azm for Communication and Information Technology Co's value of 16.98% is 447.7% 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 Software company?
The median ROIC % among Software companies is 3.10, based on 2,833 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. Saudi Azm for Communication and Information Technology Co's current ROIC % of 16.98% is 447.7% 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 Saudi Azm for Communication and Information Technology Co and its competitors. For the Software industry, the median ROIC % is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Azm for Communication and Information Technology Co's current ROIC % is 16.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Azm for Communication and Information Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Azm for Communication and Information Technology Co (SAU:7211) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼29.41, compared to a current price of ﷼22.34 — trading 24% below its estimated fair value. The current ROIC % is 16.98% and 447.7% above the Software industry median of 3.10. Saudi Azm for Communication and Information Technology Co's overall GF Score™ is 55/100 with 2 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 Saudi Azm for Communication and Information Technology Co (SAU:7211), the current ROIC % is 16.98% 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 Saudi Azm for Communication and Information Technology Co (SAU:7211) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Azm for Communication and Information Technology Co stock appears to be undervalued.
The current stock price of ﷼22.34 is trading 24% below its estimated GF Value™ of ﷼29.41.
GuruFocus considers Saudi Azm for Communication and Information Technology Co to be Modestly Undervalued.
Key valuation signals for SAU:7211:
ROIC %: 16.98%
GF Value™: ﷼29.41 vs. price of ﷼22.34 (24% below fair value)
Industry Position: 447.7% above the Software median
No single metric tells the full story. See the SAU:7211 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Azm for Communication and Information Technology Co aims at providing solutions to projects with qualitative impact in the fields of information technology and executive consulting. The company is principally engaged in the designing and programming special software, application development, providing management and control services of communication sale of wire and wireless equipment and devices, design User Experience and customer journey, repair and maintenance of personal and portable computers, providing senior management consulting services and information networks and research and development on technology.
55GF Score
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ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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