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Aldrees Petroleum and Transport Services (TADAWUL:4200) Hasn't Managed To Accelerate Its Returns

Simply Wall St · 6d ago

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. With that in mind, the ROCE of Aldrees Petroleum and Transport Services (TADAWUL:4200) looks decent, right now, so lets see what the trend of returns can tell us.

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What Is Return On Capital Employed (ROCE)?

For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for Aldrees Petroleum and Transport Services, this is the formula:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)

0.10 = ر.س579m ÷ (ر.س9.4b - ر.س3.7b) (Based on the trailing twelve months to September 2025).

Therefore, Aldrees Petroleum and Transport Services has an ROCE of 10%. That's a pretty standard return and it's in line with the industry average of 10%.

See our latest analysis for Aldrees Petroleum and Transport Services

roce
SASE:4200 Return on Capital Employed January 7th 2026

Above you can see how the current ROCE for Aldrees Petroleum and Transport Services compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for Aldrees Petroleum and Transport Services .

What Does the ROCE Trend For Aldrees Petroleum and Transport Services Tell Us?

The trend of ROCE doesn't stand out much, but returns on a whole are decent. The company has employed 88% more capital in the last five years, and the returns on that capital have remained stable at 10%. Since 10% is a moderate ROCE though, it's good to see a business can continue to reinvest at these decent rates of return. Over long periods of time, returns like these might not be too exciting, but with consistency they can pay off in terms of share price returns.

The Bottom Line

The main thing to remember is that Aldrees Petroleum and Transport Services has proven its ability to continually reinvest at respectable rates of return. On top of that, the stock has rewarded shareholders with a remarkable 232% return to those who've held over the last five years. So even though the stock might be more "expensive" than it was before, we think the strong fundamentals warrant this stock for further research.

Aldrees Petroleum and Transport Services could be trading at an attractive price in other respects, so you might find our free intrinsic value estimation for 4200 on our platform quite valuable.

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