SAU:2070's Gross Margin % is ranked better than 53.3% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs SAU:2070: 51.03
Saudi Pharmaceutical Industries & Medical Appliances had a gross margin of 55.71% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Saudi Pharmaceutical Industries & Medical Appliances (SAU:2070) 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 Pharmaceutical Industries & Medical Appliances had a gross margin of 55.71% for the quarter that ended in Mar. 2026 => Durable 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 Pharmaceutical Industries & Medical Appliances Gross Margin % Related Terms
Saudi Pharmaceutical Industries & Medical Appliances 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.
Saudi Pharmaceutical Industries & Medical Appliances Gross Margin % Chart
Saudi Pharmaceutical Industries & Medical Appliances Annual Data
SAU:2070 vs ZTS, UTHR, VTRS: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Saudi Pharmaceutical Industries & Medical Appliances'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 Pharmaceutical Industries & Medical Appliances Gross Margin % vs Drug Manufacturers Industry
* 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 Pharmaceutical Industries & Medical Appliances (SAU:2070) has a Gross Margin % of 55.71% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Saudi Pharmaceutical Industries & Medical Appliances and its competitors. This is 28% above median its historical median of 43.46. Over the past decade, Saudi Pharmaceutical Industries & Medical Appliances' Gross Margin % has ranged from 33.47 to 56.62. According to the industry distribution chart, Saudi Pharmaceutical Industries & Medical Appliances ranks #438 out of 938 companies in the Drug Manufacturers industry, placing it in the top 46.7%.
Is Saudi Pharmaceutical Industries & Medical Appliances' Gross Margin % too high?
Saudi Pharmaceutical Industries & Medical Appliances' current Gross Margin % of 55.71% is 28% above median its 10-year median of 43.46. Over the past 10 years, this metric has ranged from a low of 33.47 to a high of 56.62. The Drug Manufacturers industry median Gross Margin % is 48.54. Saudi Pharmaceutical Industries & Medical Appliances' value of 55.71% is 14.8% above this industry median. Based on the distribution chart, Saudi Pharmaceutical Industries & Medical Appliances ranks #438 out of 938 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Saudi Pharmaceutical Industries & Medical Appliances has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Saudi Pharmaceutical Industries & Medical Appliances' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Saudi Pharmaceutical Industries & Medical Appliances ranks #438 out of 938 companies for Gross Margin %. This puts Saudi Pharmaceutical Industries & Medical Appliances in the upper half of its industry. The industry median Gross Margin % is 48.54. Saudi Pharmaceutical Industries & Medical Appliances' value of 55.71% is 14.8% above this benchmark. Historically, Saudi Pharmaceutical Industries & Medical Appliances' own Gross Margin % has ranged from 33.47 to 56.62 over the past decade. While the company's 10-year median is 43.46 vs. the industry median of 48.54, Saudi Pharmaceutical Industries & Medical Appliances has consistently been above 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 938 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 Pharmaceutical Industries & Medical Appliances's current Gross Margin % of 55.71% is 14.8% above 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 Pharmaceutical Industries & Medical Appliances and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Pharmaceutical Industries & Medical Appliances's current Gross Margin % is 55.71%, which is 28% above median its own 10-year median of 43.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Pharmaceutical Industries & Medical Appliances stock overvalued right now?
Based on GuruFocus' analysis, Saudi Pharmaceutical Industries & Medical Appliances (SAU:2070) is currently considered Fairly Valued. The stock's GF Value™ is ﷼31.18, compared to a current price of ﷼29.96 — trading 3.9% below its estimated fair value. The current Gross Margin % is 55.71%, which is 28% above median its 10-year median of 43.46 and 14.8% above the Drug Manufacturers industry median of 48.54. Saudi Pharmaceutical Industries & Medical Appliances' overall GF Score™ is 66/100 with 6 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 Pharmaceutical Industries & Medical Appliances (SAU:2070), the current Gross Margin % is 55.71% 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 Pharmaceutical Industries & Medical Appliances (SAU:2070) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Pharmaceutical Industries & Medical Appliances stock appears to be undervalued.
The current stock price of ﷼29.96 is trading 3.9% below its estimated GF Value™ of ﷼31.18.
GuruFocus considers Saudi Pharmaceutical Industries & Medical Appliances to be Fairly Valued.
Key valuation signals for SAU:2070:
Gross Margin %: 55.71% (28% above median its 10-year median of 43.46)
GF Value™: ﷼31.18 vs. price of ﷼29.96 (3.9% below fair value)
Industry Position: 14.8% above the Drug Manufacturers median (#438 of 938)
No single metric tells the full story. See the SAU:2070 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Pharmaceutical Industries & Medical Appliances Business Description
Saudi Pharmaceutical Industries & Medical Appliances Corp is involved in the manufacturing of basic chemical substances and products; medicines for human use, including cosmetics; pharmaceutical production and wholesale and retail of medicines and related products; development and marketing of medicinal and pharmaceutical products; research and development in medical science activities; operating and maintaining the healthcare facilities and any investments in related industries. The segments of the company are Pharmaceutical Manufacturing, Trading and Distribution services, and Healthcare Services, out of which the company derives maximum revenue from the Pharmaceutical Manufacturing segment. Its geographical segments are Saudi Arabia, Egypt, the Middle East, Morocco, and Algeria.
66GF Score
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