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Saleh Abdulaziz AlRashed & Sons Co (SAU:1324) 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
Saleh Abdulaziz AlRashed & Sons Co had a gross margin of 14.95% 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.
Saleh Abdulaziz AlRashed & Sons Co Gross Margin % Related Terms
Saleh Abdulaziz AlRashed & Sons Co Gross Margin % Historical Data
* 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.
Saleh Abdulaziz AlRashed & Sons Co Gross Margin % Chart
Saleh Abdulaziz AlRashed & Sons Co Annual Data
Trend
Gross Margin %
Saleh Abdulaziz AlRashed & Sons Co Semi-Annual Data
Mar25
Mar26
Gross Margin %
23.41
14.95
SAU:1324 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Saleh Abdulaziz AlRashed & Sons 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.
Saleh Abdulaziz AlRashed & Sons Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Saleh Abdulaziz AlRashed & Sons Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Saleh Abdulaziz AlRashed & Sons 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.
Saleh Abdulaziz AlRashed & Sons Co (SAU:1324) has a Gross Margin % of 14.95% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Saleh Abdulaziz AlRashed & Sons Co and its competitors. According to the industry distribution chart, Saleh Abdulaziz AlRashed & Sons Co ranks #1121 out of 1725 companies in the Construction industry, placing it in the top 65%.
Is Saleh Abdulaziz AlRashed & Sons Co's Gross Margin % too high?
Saleh Abdulaziz AlRashed & Sons Co's current Gross Margin % is 14.95%. The Construction industry median Gross Margin % is 20.70. Saleh Abdulaziz AlRashed & Sons Co's value of 14.95% is 27.8% below this industry median. Based on the distribution chart, Saleh Abdulaziz AlRashed & Sons Co ranks #1121 out of 1725 companies in the Construction industry, which is below the industry midpoint. Overall, Saleh Abdulaziz AlRashed & Sons Co has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Saleh Abdulaziz AlRashed & Sons Co's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Saleh Abdulaziz AlRashed & Sons Co ranks #1121 out of 1725 companies for Gross Margin %. This places Saleh Abdulaziz AlRashed & Sons Co in the lower half of its industry. The industry median Gross Margin % is 20.70. Saleh Abdulaziz AlRashed & Sons Co's value of 14.95% is 27.8% below this benchmark. 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 Construction company?
The median Gross Margin % among Construction companies is 20.70, based on 1,725 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. Saleh Abdulaziz AlRashed & Sons Co's current Gross Margin % of 14.95% is 27.8% 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 Saleh Abdulaziz AlRashed & Sons Co and its competitors. For the Construction industry, the median Gross Margin % is 20.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saleh Abdulaziz AlRashed & Sons Co's current Gross Margin % is 14.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saleh Abdulaziz AlRashed & Sons Co stock overvalued right now?
Saleh Abdulaziz AlRashed & Sons Co (SAU:1324) has a current Gross Margin % of 14.95%. The current Gross Margin % is 14.95% and 27.8% below the Construction industry median of 20.70. Saleh Abdulaziz AlRashed & Sons Co's overall GF Score™ is 11/100. 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 Saleh Abdulaziz AlRashed & Sons Co (SAU:1324), the current Gross Margin % is 14.95% 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.
Saleh Abdulaziz AlRashed & Sons Co Business Description
Saleh Abdulaziz AlRashed & Sons Co is a producer and supplier of essential aggregate materials, spare parts, and crushers, serving critical sectors such as infrastructure, roadworks, real estate development, and industrial projects. The group is leveraging a vertically integrated business model, which manages the full value chain, from raw material extraction, processing, to distribution, ensuring high-quality products, operational efficiency, and supply chain resilience. Its business segment are Construction material and Spare Parts that includes aggregates production, asphalt production, spare parts trading, crushers, distribution, and specialized industrial fabrication.
11GF Score
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