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Al Rajhi BankSAU:1120 -0.30%78 5-Year Yield-on-Cost % is 2.51 as of Sep. 16, 2026, which is 10% below its 10-year median of 2.78. GuruFocus rates SAU:1120 with a GF Score™ of 78/100 and a GF Value™ of ﷼79.59 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,241 Banks companies, Al Rajhi Bank ranks worse than 72.12% on this metric.
Al Rajhi Bank's yield on cost for the quarter that ended in Jun. 2026 was 2.51.
The historical rank and industry rank for Al Rajhi Bank's 5-Year Yield-on-Cost % or its related term are showing as below:
SAU:1120'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.78 Med: 2.78 Max: 7.12
Current: 2.51
During the past 13 years, Al Rajhi Bank's highest Yield on Cost was 7.12. The lowest was 0.78. And the median was 2.78.
SAU:1120's 5-Year Yield-on-Cost % is ranked worse than 72.12% of 1241
companies
in the Banks industry
Industry Median: 3.82
vs SAU:1120: 2.51
Al Rajhi Bank (SAU:1120) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Al Rajhi Bank 5-Year Yield-on-Cost % Related Terms
Al Rajhi Bank 5-Year Yield-on-Cost % Competitor Comparison
For the Banks - Regional subindustry, Al Rajhi Bank's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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.
Al Rajhi Bank 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, Al Rajhi Bank's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Al Rajhi Bank's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Al Rajhi Bank is calculated as
Al Rajhi Bank (SAU:1120) has a 5-Year Yield-on-Cost % of 2.51 as of Sep. 16, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Al Rajhi Bank and its competitors. This is 10% below median its historical median of 2.78. Over the past decade, Al Rajhi Bank's 5-Year Yield-on-Cost % has ranged from 0.78 to 7.12. According to the industry distribution chart, Al Rajhi Bank ranks #895 out of 1241 companies in the Banks industry, placing it in the top 72.1%.
Is Al Rajhi Bank's 5-Year Yield-on-Cost % too high?
Al Rajhi Bank's current 5-Year Yield-on-Cost % of 2.51 is 10% below median its 10-year median of 2.78. Over the past 10 years, this metric has ranged from a low of 0.78 to a high of 7.12. The Banks industry median 5-Year Yield-on-Cost % is 3.82. Al Rajhi Bank's value of 2.51 is 34.3% below this industry median. Based on the distribution chart, Al Rajhi Bank ranks #895 out of 1241 companies in the Banks industry, which is below the industry midpoint. Overall, Al Rajhi Bank has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Al Rajhi Bank's 5-Year Yield-on-Cost % compare to competitors?
According to the Banks industry distribution chart, Al Rajhi Bank ranks #895 out of 1241 companies for 5-Year Yield-on-Cost %. This places Al Rajhi Bank in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.82. Al Rajhi Bank's value of 2.51 is 34.3% below this benchmark. Historically, Al Rajhi Bank's own 5-Year Yield-on-Cost % has ranged from 0.78 to 7.12 over the past decade. While the company's 10-year median is 2.78 vs. the industry median of 3.82, Al Rajhi Bank has consistently been below 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 5-Year Yield-on-Cost % for a Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.82, based on 1,241 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Al Rajhi Bank's current 5-Year Yield-on-Cost % of 2.51 is 34.3% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Al Rajhi Bank and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al Rajhi Bank's current 5-Year Yield-on-Cost % is 2.51, which is 10% below median its own 10-year median of 2.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Rajhi Bank stock overvalued right now?
Based on GuruFocus' analysis, Al Rajhi Bank (SAU:1120) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼79.59, compared to a current price of ﷼66.20 — trading 16.8% below its estimated fair value. The current 5-Year Yield-on-Cost % is 2.51, which is 10% below median its 10-year median of 2.78 and 34.3% below the Banks industry median of 3.82. Al Rajhi Bank's overall GF Score™ is 78/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Al Rajhi Bank (SAU:1120), the current 5-Year Yield-on-Cost % is 2.51 as of Sep. 16, 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 Al Rajhi Bank (SAU:1120) Overvalued in 2026?
Based on GuruFocus' analysis, Al Rajhi Bank stock appears to be undervalued.
The current stock price of ﷼66.20 is trading 16.8% below its estimated GF Value™ of ﷼79.59.
GuruFocus considers Al Rajhi Bank to be Modestly Undervalued.
Key valuation signals for SAU:1120:
5-Year Yield-on-Cost %: 2.51 (10% below median its 10-year median of 2.78)
GF Value™: ﷼79.59 vs. price of ﷼66.20 (16.8% below fair value)
Industry Position: 34.3% below the Banks median (#895 of 1241)
No single metric tells the full story. See the SAU:1120 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al Rajhi Bank is an Islamic bank with a network of over 500 branches. Its segments include the Retail segment which includes accepting individual customer deposits, providing credit facilities, customer debit current accounts, fees from banking services, and remittance business; the Corporate segment which incorporates deposits of VIP, corporate customer deposits, credit facilities, and debit current accounts, Treasury segment through which it offers treasury services, Murabaha with SAMA and international Mutajara portfolio; and Investment services and brokerage and other that incorporates investments of individuals and corporate in mutual funds, local and international share trading services and investment portfolios.
78GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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