Altharwah Albashariyyah Co (SAU:9606) ROIC %: -7.92% (As of Dec. 2025)

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SAU:9606 Altharwah Albashariyyah Co SAU:9606
21 GF Score
Price ﷼27.94
! 4 Warning Signs
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What is Altharwah Albashariyyah Co ROIC %?

Altharwah Albashariyyah Co SAU:9606 21 ROIC % is -7.92% as of Dec. 2025. GuruFocus rates SAU:9606 with a GF Score™ of 21/100. The stock has 4 warning signs investors should review.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Altharwah Albashariyyah Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -7.92%.

As of today (2026-08-01), Altharwah Albashariyyah Co's WACC % is 11.28%. Altharwah Albashariyyah Co's ROIC % is 1.22% (calculated using TTM income statement data). Altharwah Albashariyyah Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Altharwah Albashariyyah Co  (SAU:9606) 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, Altharwah Albashariyyah Co's WACC % is 11.28%. Altharwah Albashariyyah Co's ROIC % is 1.22% (calculated using TTM income statement data). Altharwah Albashariyyah 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.


Altharwah Albashariyyah Co ROIC % Related Terms


Altharwah Albashariyyah Co ROIC % Historical Data

* Premium members only.

The historical data trend for Altharwah Albashariyyah 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.

Altharwah Albashariyyah Co ROIC % Chart

Altharwah Albashariyyah Co Annual Data
Trend Dec23 Dec24 Dec25
ROIC %
62.32 33.31 1.57

Altharwah Albashariyyah Co Semi-Annual Data
Dec23 Jun24 Dec24 Jun25 Dec25
ROIC % 0.00 36.04 31.80 12.54 -7.92

SAU:9606 vs VRSK, EFX, BAH: ROIC % Comparison

For the Consulting Services subindustry, Altharwah Albashariyyah 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.


Altharwah Albashariyyah Co ROIC % vs Business Services Industry

For the Business Services industry and Industrials sector, Altharwah Albashariyyah Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Altharwah Albashariyyah Co's ROIC % falls into.


SAU:9606
21GF Score
Altharwah Albashariyyah Co SAU:9606
ROIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Altharwah Albashariyyah Co ROIC % Calculation

Altharwah Albashariyyah Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2025 is calculated as:

ROIC % (A: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2024 ) + Invested Capital (A: Dec. 2025 ))/ count )
=1.854 * ( 1 - 41.53% )/( (48.217 + 90.038)/ 2 )
=1.0840338/69.1275
=1.57 %

where

Altharwah Albashariyyah Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2025 is calculated as:

ROIC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=-8.67 * ( 1 - 0% )/( (128.891 + 90.038)/ 2 )
=-8.67/109.4645
=-7.92 %

where

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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of -7.92% mean?
Altharwah Albashariyyah Co (SAU:9606) has a ROIC % of -7.92% 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 Altharwah Albashariyyah Co and its competitors.
Is Altharwah Albashariyyah Co's ROIC % too high?
Altharwah Albashariyyah Co's current ROIC % is -7.92%. Overall, Altharwah Albashariyyah Co has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Altharwah Albashariyyah Co's ROIC % compare to VRSK and EFX?
Altharwah Albashariyyah Co's ROIC % of -7.92% can be compared against companies in the Business Services industry. The industry median ROIC % is 6.03. 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 6.03, based on 1,072 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. 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 Altharwah Albashariyyah Co and its competitors. For the Business Services industry, the median ROIC % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Altharwah Albashariyyah Co's current ROIC % is -7.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Altharwah Albashariyyah Co stock overvalued right now?
Altharwah Albashariyyah Co (SAU:9606) has a current ROIC % of -7.92%. The current ROIC % is -7.92%. Altharwah Albashariyyah Co's overall GF Score™ is 21/100 with 4 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 Altharwah Albashariyyah Co (SAU:9606), the current ROIC % is -7.92% 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.

Altharwah Albashariyyah Co Business Description

Address Othman Bin Affan Road, P.O. Box 6941, Al Narjis District, Riyadh, SAU, 13323
Altharwah Albashariyyah Co is a Saudi firm specializing in Human Capital Advisory Services. The company offers a diverse range of services in fields such as human development, capability-building, and talent development, including the following: Management Consulting, Organisational Excellence, Talent & Leadership Development, and Talent Management.
21GF 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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