Arabian Pipes CoSAU:2200 +1.50%74 Gross Margin % is 18.96% as of Mar. 2026, which is 83% above its 10-year median of 10.38. GuruFocus rates SAU:2200 with a GF Score™ of 74/100 and a GF Value™ of ﷼5.32 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 593 Steel companies, Arabian Pipes Co ranks better than 71.5% on this metric.
The historical rank and industry rank for Arabian Pipes Co's Gross Margin % or its related term are showing as below:
SAU:2200'
s Gross Margin % Range Over the Past 10 Years
Min: -38.36 Med: 10.38 Max: 24.88
Current: 20.13
During the past 13 years, the highestGross Margin % of Arabian Pipes Co was 24.88%. The lowest was -38.36%. And the median was 10.38%.
SAU:2200's Gross Margin % is ranked better than 71.5% of 593
companies
in the Steel industry
Industry Median: 12.6
vs SAU:2200: 20.13
Arabian Pipes Co had a gross margin of 18.96% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Arabian Pipes Co was 0.00% per year.
Arabian Pipes Co (SAU:2200) 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
Arabian Pipes Co had a gross margin of 18.96% 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.
Arabian Pipes Co Gross Margin % Related Terms
Arabian Pipes Co Gross Margin % Historical Data
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The historical data trend for Arabian Pipes 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.
SAU:2200 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Arabian Pipes 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.
Arabian Pipes Co Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Arabian Pipes Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Arabian Pipes 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.
Arabian Pipes Co (SAU:2200) has a Gross Margin % of 18.96% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Arabian Pipes Co and its competitors. This is 83% above median its historical median of 10.38. According to the industry distribution chart, Arabian Pipes Co ranks #169 out of 593 companies in the Steel industry, placing it in the top 28.5%.
Is Arabian Pipes Co's Gross Margin % too high?
Arabian Pipes Co's current Gross Margin % of 18.96% is 83% above median its 10-year median of 10.38. The Steel industry median Gross Margin % is 12.60. Arabian Pipes Co's value of 18.96% is 50.5% above this industry median. Based on the distribution chart, Arabian Pipes Co ranks #169 out of 593 companies in the Steel industry, which is above the industry midpoint. Overall, Arabian Pipes Co has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arabian Pipes Co's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Arabian Pipes Co ranks #169 out of 593 companies for Gross Margin %. This puts Arabian Pipes Co in the upper half of its industry. The industry median Gross Margin % is 12.60. Arabian Pipes Co's value of 18.96% is 50.5% above this benchmark. While the company's 10-year median is 10.38 vs. the industry median of 12.60, Arabian Pipes Co 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 Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 593 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. Arabian Pipes Co's current Gross Margin % of 18.96% is 50.5% 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 Arabian Pipes Co and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Pipes Co's current Gross Margin % is 18.96%, which is 83% above median its own 10-year median of 10.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Pipes Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Pipes Co (SAU:2200) is currently considered Modestly Overvalued. The stock's GF Value™ is ﷼5.32, compared to a current price of ﷼6.76 — trading 27.1% above its estimated fair value. The current Gross Margin % is 18.96%, which is 83% above median its 10-year median of 10.38 and 50.5% above the Steel industry median of 12.60. Arabian Pipes Co's overall GF Score™ is 74/100 with 1 warning sign 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 Arabian Pipes Co (SAU:2200), the current Gross Margin % is 18.96% 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 Arabian Pipes Co (SAU:2200) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Pipes Co stock appears to be overvalued.
The current stock price of ﷼6.76 is trading 27.1% above its estimated GF Value™ of ﷼5.32.
GuruFocus considers Arabian Pipes Co to be Modestly Overvalued.
Key valuation signals for SAU:2200:
Gross Margin %: 18.96% (83% above median its 10-year median of 10.38)
GF Value™: ﷼5.32 vs. price of ﷼6.76 (27.1% above fair value)
Industry Position: 50.5% above the Steel median (#169 of 593)
No single metric tells the full story. See the SAU:2200 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Pipes Co is engaged in the production and marketing of longitudinally welded steel pipes for pipelines and for construction and commercial purposes. Its other activities include bending, shaping, and threading pipes from the outside and inside, carrying out commercial business such as selling and buying pipes and their accessories, carrying out pipeline extension works, manufacturing pipes, hoses, plastic pipes, their connections and accessories, and manufacturing hollow iron and steel. The company generates the majority of revenue from Saudi Arabia.
74GF Score
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