Saudi Basic IndustriesSAU:2010 -1.06%73 Gross Margin % is 19.61% as of Mar. 2026, which is 11% below its 10-year median of 22.15. GuruFocus rates SAU:2010 with a GF Score™ of 73/100 and a GF Value™ of ﷼55.68 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,560 Chemicals companies, Saudi Basic Industries ranks worse than 60.06% on this metric.
SAU:2010's Gross Margin % is ranked worse than 60.06% of 1560
companies
in the Chemicals industry
Industry Median: 23.36
vs SAU:2010: 19.72
Saudi Basic Industries had a gross margin of 19.61% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Saudi Basic Industries was -4.10% per year.
Saudi Basic Industries (SAU:2010) 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
Saudi Basic Industries had a gross margin of 19.61% 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.
Saudi Basic Industries Gross Margin % Related Terms
Saudi Basic Industries Gross Margin % Historical Data
* Premium members only.
The historical data trend for Saudi Basic Industries'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 Chemicals subindustry, Saudi Basic Industries'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.
Saudi Basic Industries Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Saudi Basic Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Saudi Basic Industries'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.
Saudi Basic Industries (SAU:2010) has a Gross Margin % of 19.61% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Saudi Basic Industries and its competitors. This is 11% below median its historical median of 22.15. Over the past decade, Saudi Basic Industries' Gross Margin % has ranged from 15.60 to 34.20. According to the industry distribution chart, Saudi Basic Industries ranks #937 out of 1560 companies in the Chemicals industry, placing it in the top 60.1%.
Is Saudi Basic Industries' Gross Margin % too high?
Saudi Basic Industries' current Gross Margin % of 19.61% is 11% below median its 10-year median of 22.15. Over the past 10 years, this metric has ranged from a low of 15.60 to a high of 34.20. The Chemicals industry median Gross Margin % is 23.36. Saudi Basic Industries' value of 19.61% is 16.1% below this industry median. Based on the distribution chart, Saudi Basic Industries ranks #937 out of 1560 companies in the Chemicals industry, which is below the industry midpoint. Overall, Saudi Basic Industries has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Saudi Basic Industries' Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Saudi Basic Industries ranks #937 out of 1560 companies for Gross Margin %. This places Saudi Basic Industries in the lower half of its industry. The industry median Gross Margin % is 23.36. Saudi Basic Industries' value of 19.61% is 16.1% below this benchmark. Historically, Saudi Basic Industries' own Gross Margin % has ranged from 15.60 to 34.20 over the past decade. While the company's 10-year median is 22.15 vs. the industry median of 23.36, Saudi Basic Industries 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.36, based on 1,560 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. Saudi Basic Industries's current Gross Margin % of 19.61% is 16.1% 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 Saudi Basic Industries and its competitors. For the Chemicals industry, the median Gross Margin % is 23.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Basic Industries's current Gross Margin % is 19.61%, which is 11% below median its own 10-year median of 22.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Basic Industries stock overvalued right now?
Based on GuruFocus' analysis, Saudi Basic Industries (SAU:2010) is currently considered Fairly Valued. The stock's GF Value™ is ﷼55.68, compared to a current price of ﷼51.55 — trading 7.4% below its estimated fair value. The current Gross Margin % is 19.61%, which is 11% below median its 10-year median of 22.15 and 16.1% below the Chemicals industry median of 23.36. Saudi Basic Industries' overall GF Score™ is 73/100 with 8 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 Saudi Basic Industries (SAU:2010), the current Gross Margin % is 19.61% 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 Saudi Basic Industries (SAU:2010) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Basic Industries stock appears to be undervalued.
The current stock price of ﷼51.55 is trading 7.4% below its estimated GF Value™ of ﷼55.68.
GuruFocus considers Saudi Basic Industries to be Fairly Valued.
Key valuation signals for SAU:2010:
Gross Margin %: 19.61% (11% below median its 10-year median of 22.15)
GF Value™: ﷼55.68 vs. price of ﷼51.55 (7.4% below fair value)
Industry Position: 16.1% below the Chemicals median (#937 of 1560)
No single metric tells the full story. See the SAU:2010 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Basic Industries Corp is a chemicals manufacturer in Saudi Arabia. The primary business segments of the company are Petrochemicals and Agri-nutrients. In Petrochemicals segment products included polymers and chemicals are produced from hydrocarbon feedstock including methane, ethane, and propane, it also includes the production of a range of fertilisers; including urea, ammonia, phosphate, as well as compound fertilisers. The Hadeed is concerned with production of steel products, long products and flat products. The company derives maximum revenue from Petrochemicals segment. Geographically, it generates maximum revenue from Rest of Asia followed by China, KSA, America and Europe.
73GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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