Edarat Communication And Information Technology Co (SAU:9557) 3-Year ROIIC % : 31.38% (As of Dec. 2025) — Near Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

SAU:9557 Edarat Communication And Information Technology Co SAU:9557
59 GF Score
Price ﷼270.00
GF Value ﷼303.72
Valuation Modestly Undervalued
! 4 Warning Signs
View Full Analysis

What is Edarat Communication And Information Technology Co 3-Year ROIIC %?

Edarat Communication And Information Technology Co SAU:9557 -0.74% 59 3-Year ROIIC % is 31.38 as of Dec. 2025, which is 8% below its 10-year median of 34.04. GuruFocus rates SAU:9557 with a GF Score™ of 59/100 and a GF Value™ of ﷼303.72 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,621 Software companies, Edarat Communication And Information Technology Co ranks better than 75.35% on this metric.

3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year. Edarat Communication And Information Technology Co's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 31.38%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Edarat Communication And Information Technology Co's 3-Year ROIIC % or its related term are showing as below:

SAU:9557's 3-Year ROIIC % is ranked better than
75.35% of 2621 companies
in the Software industry
Industry Median: 5.01 vs SAU:9557: 31.38

Edarat Communication And Information Technology Co  (SAU:9557) 3-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Edarat Communication And Information Technology Co 3-Year ROIIC % Related Terms


Edarat Communication And Information Technology Co 3-Year ROIIC % Historical Data

* Premium members only.

The historical data trend for Edarat Communication And Information Technology Co's 3-Year ROIIC % 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.

Edarat Communication And Information Technology Co 3-Year ROIIC % Chart

Edarat Communication And Information Technology Co Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
3-Year ROIIC %
0.00 0.00 0.00 36.70 31.38

Edarat Communication And Information Technology Co Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
3-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 36.70 0.00 31.38 0.00

SAU:9557 vs IBM, ACN, CTSH: 3-Year ROIIC % Comparison

For the Information Technology Services subindustry, Edarat Communication And Information Technology Co's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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.


Edarat Communication And Information Technology Co 3-Year ROIIC % vs Software Industry

For the Software industry and Technology sector, Edarat Communication And Information Technology Co's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Edarat Communication And Information Technology Co's 3-Year ROIIC % falls into.


SAU:9557
59GF Score
Edarat Communication And Information Technology Co SAU:9557
3-Year ROIIC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Edarat Communication And Information Technology Co 3-Year ROIIC % Calculation

Edarat Communication And Information Technology Co's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 37.8805196 (Dec. 2025) - 12.9962784 (Dec. 2022) )/( 107.053 (Dec. 2025) - 27.759 (Dec. 2022) )
=24.8842412/79.294
=31.38%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

Frequently Asked Questions Learn more about 3-Year ROIIC % →
What does a 3-Year ROIIC % of 31.38 mean?
Edarat Communication And Information Technology Co (SAU:9557) has a 3-Year ROIIC % of 31.38 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Edarat Communication And Information Technology Co and its competitors. This is near median its historical median of 34.04. Over the past decade, Edarat Communication And Information Technology Co's 3-Year ROIIC % has ranged from 31.38 to 36.70. According to the industry distribution chart, Edarat Communication And Information Technology Co ranks #646 out of 2621 companies in the Software industry, placing it in the top 24.6%.
Is Edarat Communication And Information Technology Co's 3-Year ROIIC % too high?
Edarat Communication And Information Technology Co's current 3-Year ROIIC % of 31.38 is near median its 10-year median of 34.04. Over the past 10 years, this metric has ranged from a low of 31.38 to a high of 36.70. The Software industry median 3-Year ROIIC % is 5.01. Edarat Communication And Information Technology Co's value of 31.38 is 526.3% above this industry median. Based on the distribution chart, Edarat Communication And Information Technology Co ranks #646 out of 2621 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Edarat Communication And Information Technology Co has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Edarat Communication And Information Technology Co's 3-Year ROIIC % compare to IBM and ACN?
According to the Software industry distribution chart, Edarat Communication And Information Technology Co ranks #646 out of 2621 companies for 3-Year ROIIC %. This places Edarat Communication And Information Technology Co in the top 25% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 5.01. Edarat Communication And Information Technology Co's value of 31.38 is 526.3% above this benchmark. Historically, Edarat Communication And Information Technology Co's own 3-Year ROIIC % has ranged from 31.38 to 36.70 over the past decade. While the company's 10-year median is 34.04 vs. the industry median of 5.01, Edarat Communication And Information Technology Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Software company?
The median 3-Year ROIIC % among Software companies is 5.01, based on 2,621 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Edarat Communication And Information Technology Co's current 3-Year ROIIC % of 31.38 is 526.3% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Edarat Communication And Information Technology Co and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Edarat Communication And Information Technology Co's current 3-Year ROIIC % is 31.38, which is near median its own 10-year median of 34.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Edarat Communication And Information Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Edarat Communication And Information Technology Co (SAU:9557) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼303.72, compared to a current price of ﷼270.00 — trading 11.1% below its estimated fair value. The current 3-Year ROIIC % is 31.38, which is near median its 10-year median of 34.04 and 526.3% above the Software industry median of 5.01. Edarat Communication And Information Technology Co's overall GF Score™ is 59/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Edarat Communication And Information Technology Co (SAU:9557), the current 3-Year ROIIC % is 31.38 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 Edarat Communication And Information Technology Co (SAU:9557) Overvalued in 2026?

Based on GuruFocus' analysis, Edarat Communication And Information Technology Co stock appears to be undervalued. The current stock price of ﷼270.00 is trading 11.1% below its estimated GF Value™ of ﷼303.72. GuruFocus considers Edarat Communication And Information Technology Co to be Modestly Undervalued.

Key valuation signals for SAU:9557:

  • 3-Year ROIIC %: 31.38 (near median its 10-year median of 34.04)
  • GF Value™: ﷼303.72 vs. price of ﷼270.00 (11.1% below fair value)
  • GF Score™: 59/100 with 4 warning signs
  • Industry Position: 526.3% above the Software median (#646 of 2621)

No single metric tells the full story. See the SAU:9557 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Edarat Communication And Information Technology Co Business Description

Address King Abdulaziz Road, PO Box. No. 2414, Al Yasmeen District, Riyadh, SAU, 13322
Edarat Communication And Information Technology Co is engaged in the implementation of service contracts including provision of virtual network operator services, colocation services, system analysis, design and programming of software, providing management and monitoring of communications and information networks, establishing web hosting infrastructure and related services, data center services and related activities and subscriptions to provide cloud computing service. Its services include data center engineering, data center colocation, Edge AI, Edarat Marketplace, and cloud services. The company has two operating segments; Data Center Engineering Services and Cloud Service. It derives maximum revenue from Data Center Engineering Services segment.
59GF Score

Get the complete analysis for SAU:9557

3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

﷼270.00
Price
﷼303.72
GF Value