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Alkhorayef Water & Power Technologies (SAU:2081) 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
Alkhorayef Water & Power Technologies had a gross margin of 21.59% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Alkhorayef Water & Power Technologies Gross Margin % Related Terms
Alkhorayef Water & Power Technologies 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.
Alkhorayef Water & Power Technologies Gross Margin % Chart
SAU:2081 vs AWK, WTRG, AWR: Gross Margin % Comparison
For the Utilities - Regulated Water subindustry, Alkhorayef Water & Power Technologies'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.
Alkhorayef Water & Power Technologies Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Alkhorayef Water & Power Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alkhorayef Water & Power Technologies'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.
Alkhorayef Water & Power Technologies (SAU:2081) has a Gross Margin % of 21.59% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Alkhorayef Water & Power Technologies and its competitors. This is near median its historical median of 21.23. Over the past decade, Alkhorayef Water & Power Technologies' Gross Margin % has ranged from 15.72 to 27.50. According to the industry distribution chart, Alkhorayef Water & Power Technologies ranks #344 out of 489 companies in the Utilities - Regulated industry, placing it in the top 70.3%.
Is Alkhorayef Water & Power Technologies' Gross Margin % too high?
Alkhorayef Water & Power Technologies' current Gross Margin % of 21.59% is near median its 10-year median of 21.23. Over the past 10 years, this metric has ranged from a low of 15.72 to a high of 27.50. The Utilities - Regulated industry median Gross Margin % is 30.63. Alkhorayef Water & Power Technologies' value of 21.59% is 29.5% below this industry median. Based on the distribution chart, Alkhorayef Water & Power Technologies ranks #344 out of 489 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Alkhorayef Water & Power Technologies has a GF Score™ of 92/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Alkhorayef Water & Power Technologies' Gross Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Alkhorayef Water & Power Technologies ranks #344 out of 489 companies for Gross Margin %. This places Alkhorayef Water & Power Technologies in the lower half of its industry. The industry median Gross Margin % is 30.63. Alkhorayef Water & Power Technologies' value of 21.59% is 29.5% below this benchmark. Historically, Alkhorayef Water & Power Technologies' own Gross Margin % has ranged from 15.72 to 27.50 over the past decade. While the company's 10-year median is 21.23 vs. the industry median of 30.63, Alkhorayef Water & Power Technologies 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 an Utilities - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 30.63, based on 489 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. Alkhorayef Water & Power Technologies's current Gross Margin % of 21.59% is 29.5% 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 Alkhorayef Water & Power Technologies and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alkhorayef Water & Power Technologies's current Gross Margin % is 21.59%, which is near median its own 10-year median of 21.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alkhorayef Water & Power Technologies stock overvalued right now?
Based on GuruFocus' analysis, Alkhorayef Water & Power Technologies (SAU:2081) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼199.35, compared to a current price of ﷼103.50 — trading 48.1% below its estimated fair value. The current Gross Margin % is 21.59%, which is near median its 10-year median of 21.23 and 29.5% below the Utilities - Regulated industry median of 30.63. Alkhorayef Water & Power Technologies' overall GF Score™ is 92/100 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 Alkhorayef Water & Power Technologies (SAU:2081), the current Gross Margin % is 21.59% 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 Alkhorayef Water & Power Technologies (SAU:2081) Overvalued in 2026?
Based on GuruFocus' analysis, Alkhorayef Water & Power Technologies stock appears to be undervalued.
The current stock price of ﷼103.50 is trading 48.1% below its estimated GF Value™ of ﷼199.35.
GuruFocus considers Alkhorayef Water & Power Technologies to be Possible Value Trap.
Key valuation signals for SAU:2081:
Gross Margin %: 21.59% (near median its 10-year median of 21.23)
GF Value™: ﷼199.35 vs. price of ﷼103.50 (48.1% below fair value)
Industry Position: 29.5% below the Utilities - Regulated median (#344 of 489)
No single metric tells the full story. See the SAU:2081 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alkhorayef Water & Power Technologies Business Description
Alkhorayef Water & Power Technologies is engaged in contracting for buildings, roads, industrial, mechanical, marine and electrical works, cleaning of buildings and cities, operation and maintenance of medical centers, hospitals, airports, and waste disposal, and environmental pollution control. Its business consists of three business divisions: Water segment, Wastewater segment, and the Integrated water solutions segment. The company derives maximum revenue from the Water Segment. The Water Segment of the company represents project and O&M services for Deep waterwalls, Water treatment plants, Water distribution networks, and Firework networks. Geographically, the company operates only in Saudi Arabia.
92GF Score
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