Alfakhera For Mens Tailoring Co (SAU:9618) ROIC %: 19.95% (As of Dec. 2025)

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SAU:9618 Alfakhera For Mens Tailoring Co SAU:9618
20 GF Score
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What is Alfakhera For Mens Tailoring Co ROIC %?

Alfakhera For Mens Tailoring Co SAU:9618 -0.81% 20 ROIC % is 19.95% as of Dec. 2025. GuruFocus rates SAU:9618 with a GF Score™ of 20/100. The stock has 6 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 %. Alfakhera For Mens Tailoring Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 19.95%.

As of today (2026-07-20), Alfakhera For Mens Tailoring Co's WACC % is 9.95%. Alfakhera For Mens Tailoring Co's ROIC % is 15.85% (calculated using TTM income statement data). Alfakhera For Mens Tailoring 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.


Alfakhera For Mens Tailoring Co  (SAU:9618) 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, Alfakhera For Mens Tailoring Co's WACC % is 9.95%. Alfakhera For Mens Tailoring Co's ROIC % is 15.85% (calculated using TTM income statement data). Alfakhera For Mens Tailoring 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.


Alfakhera For Mens Tailoring Co ROIC % Related Terms


Alfakhera For Mens Tailoring Co ROIC % Historical Data

* Premium members only.

The historical data trend for Alfakhera For Mens Tailoring 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.

Alfakhera For Mens Tailoring Co ROIC % Chart

Alfakhera For Mens Tailoring Co Annual Data
Trend Dec23 Dec24 Dec25
ROIC %
25.04 18.79 16.65

Alfakhera For Mens Tailoring Co Semi-Annual Data
Dec23 Jun24 Dec24 Jun25 Dec25
ROIC % 0.00 24.57 14.72 9.93 19.95

SAU:9618 vs TJX, ROST, BURL: ROIC % Comparison

For the Apparel Retail subindustry, Alfakhera For Mens Tailoring 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.


Alfakhera For Mens Tailoring Co ROIC % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Alfakhera For Mens Tailoring Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Alfakhera For Mens Tailoring Co's ROIC % falls into.


SAU:9618
20GF Score
Alfakhera For Mens Tailoring Co SAU:9618
ROIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Alfakhera For Mens Tailoring Co ROIC % Calculation

Alfakhera For Mens Tailoring 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 )
=25.937 * ( 1 - 4.51% )/( (113.837 + 183.625)/ 2 )
=24.7672413/148.731
=16.65 %

where

Alfakhera For Mens Tailoring 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 )
=37.11 * ( 1 - 4.61% )/( (171.189 + 183.625)/ 2 )
=35.399229/177.407
=19.95 %

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 19.95% mean?
Alfakhera For Mens Tailoring Co (SAU:9618) has a ROIC % of 19.95% 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 Alfakhera For Mens Tailoring Co and its competitors.
Is Alfakhera For Mens Tailoring Co's ROIC % too high?
Alfakhera For Mens Tailoring Co's current ROIC % is 19.95%. The Retail - Cyclical industry median ROIC % is 4.30. Alfakhera For Mens Tailoring Co's value of 19.95% is 364% above this industry median. Overall, Alfakhera For Mens Tailoring Co has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Alfakhera For Mens Tailoring Co's ROIC % compare to TJX and ROST?
Alfakhera For Mens Tailoring Co's ROIC % of 19.95% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.30. Alfakhera For Mens Tailoring Co's value of 19.95% is 364% 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 Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.30, based on 1,113 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. Alfakhera For Mens Tailoring Co's current ROIC % of 19.95% is 364% 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 Alfakhera For Mens Tailoring Co and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alfakhera For Mens Tailoring Co's current ROIC % is 19.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alfakhera For Mens Tailoring Co stock overvalued right now?
Alfakhera For Mens Tailoring Co (SAU:9618) has a current ROIC % of 19.95%. The current ROIC % is 19.95% and 364% above the Retail - Cyclical industry median of 4.30. Alfakhera For Mens Tailoring Co's overall GF Score™ is 20/100 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 Alfakhera For Mens Tailoring Co (SAU:9618), the current ROIC % is 19.95% 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.

Alfakhera For Mens Tailoring Co Business Description

Address Al-Kharj Road, 2nd Industrial City, Riyadh, SAU
Alfakhera For Mens Tailoring Co is engaged in detailing, sewing, and knitting Arab and non-Arab men's clothing, and retail sales of luxury goods and accessories such as Underwear, Shoes, Prayer Beads, Rings, and other men's apparels.
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