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Middle East Paper CoSAU:1202 +0.06%80 Gross Margin % is 10.89% as of Mar. 2026, which is 47% below its 10-year median of 20.60. GuruFocus rates SAU:1202 with a GF Score™ of 80/100 and a GF Value™ of ﷼28.85 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 278 Forest Products companies, Middle East Paper Co ranks worse than 70.86% on this metric.
Middle East Paper Co gross margin has been in long-term decline. The average rate of decline per year is -21.1%.
The historical rank and industry rank for Middle East Paper Co's Gross Margin % or its related term are showing as below:
SAU:1202'
s Gross Margin % Range Over the Past 10 Years
Min: 5.04 Med: 20.6 Max: 42.36
Current: 12.08
During the past 13 years, the highestGross Margin % of Middle East Paper Co was 42.36%. The lowest was 5.04%. And the median was 20.60%.
SAU:1202's Gross Margin % is ranked worse than 70.86% of 278
companies
in the Forest Products industry
Industry Median: 18.825
vs SAU:1202: 12.08
Middle East Paper Co had a gross margin of 10.89% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Middle East Paper Co was -21.10% per year.
Middle East Paper Co (SAU:1202) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Middle East Paper Co had a gross margin of 10.89% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Middle East Paper Co Gross Margin % Related Terms
Middle East Paper Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Middle East Paper Co's Gross Margin % 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.
For the Paper & Paper Products subindustry, Middle East Paper Co's Gross Margin %, along with its competitors' market caps and Gross Margin % 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.
Middle East Paper Co Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Middle East Paper Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Middle East Paper Co's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Middle East Paper Co (SAU:1202) has a Gross Margin % of 10.89% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Middle East Paper Co and its competitors. This is 47% below median its historical median of 20.60. Over the past decade, Middle East Paper Co's Gross Margin % has ranged from 5.04 to 42.36. According to the industry distribution chart, Middle East Paper Co ranks #197 out of 278 companies in the Forest Products industry, placing it in the top 70.9%.
Is Middle East Paper Co's Gross Margin % too high?
Middle East Paper Co's current Gross Margin % of 10.89% is 47% below median its 10-year median of 20.60. Over the past 10 years, this metric has ranged from a low of 5.04 to a high of 42.36. The Forest Products industry median Gross Margin % is 18.83. Middle East Paper Co's value of 10.89% is 42.2% below this industry median. Based on the distribution chart, Middle East Paper Co ranks #197 out of 278 companies in the Forest Products industry, which is below the industry midpoint. Overall, Middle East Paper Co has a GF Score™ of 80/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Middle East Paper Co's Gross Margin % compare to SLVM?
According to the Forest Products industry distribution chart, Middle East Paper Co ranks #197 out of 278 companies for Gross Margin %. This places Middle East Paper Co in the lower half of its industry. The industry median Gross Margin % is 18.83. Middle East Paper Co's value of 10.89% is 42.2% below this benchmark. Historically, Middle East Paper Co's own Gross Margin % has ranged from 5.04 to 42.36 over the past decade. While the company's 10-year median is 20.60 vs. the industry median of 18.83, Middle East Paper Co 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 Gross Margin % for a Forest Products company?
The median Gross Margin % among Forest Products companies is 18.83, based on 278 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Middle East Paper Co's current Gross Margin % of 10.89% is 42.2% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Middle East Paper Co and its competitors. For the Forest Products industry, the median Gross Margin % is 18.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Middle East Paper Co's current Gross Margin % is 10.89%, which is 47% below median its own 10-year median of 20.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Middle East Paper Co stock overvalued right now?
Based on GuruFocus' analysis, Middle East Paper Co (SAU:1202) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼28.85, compared to a current price of ﷼16.81 — trading 41.7% below its estimated fair value. The current Gross Margin % is 10.89%, which is 47% below median its 10-year median of 20.60 and 42.2% below the Forest Products industry median of 18.83. Middle East Paper Co's overall GF Score™ is 80/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Middle East Paper Co (SAU:1202), the current Gross Margin % is 10.89% as of Mar. 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 Middle East Paper Co (SAU:1202) Overvalued in 2026?
Based on GuruFocus' analysis, Middle East Paper Co stock appears to be undervalued.
The current stock price of ﷼16.81 is trading 41.7% below its estimated GF Value™ of ﷼28.85.
GuruFocus considers Middle East Paper Co to be Possible Value Trap.
Key valuation signals for SAU:1202:
Gross Margin %: 10.89% (47% below median its 10-year median of 20.60)
GF Value™: ﷼28.85 vs. price of ﷼16.81 (41.7% below fair value)
Industry Position: 42.2% below the Forest Products median (#197 of 278)
No single metric tells the full story. See the SAU:1202 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Middle East Paper Co is engaged in the production and sale of container board, industrial paper, and tissue paper. Along with its subsidiaries, the company has two operating and reportable segments, that is, Manufacturing and Trading. The Manufacturing segment represents the manufacturing of container board and industrial paper, as well as tissue paper, and the Trading segment represents wholesale and retail sales of paper, carton, and plastic waste. A majority of its revenue is generated from the Manufacturing segment. Geographically, the group generates maximum revenue from Saudi Arabia, followed by Asia, Other GCC countries, Africa, Europe, and the Americas.
80GF Score
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