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Saudi Arabian Oil CoSAU:2222 +0.15%82 Gross Margin % is 55.94% as of Mar. 2026, which is 2% below its 10-year median of 57.20. GuruFocus rates SAU:2222 with a GF Score™ of 82/100 and a GF Value™ of ﷼27.07 (Fairly Valued). The stock has 5 warning signs investors should review. Among 870 Oil & Gas companies, Saudi Arabian Oil Co ranks better than 81.03% on this metric.
Saudi Arabian Oil Co gross margin has been in long-term decline. The average rate of decline per year is -2.2%.
The historical rank and industry rank for Saudi Arabian Oil Co's Gross Margin % or its related term are showing as below:
SAU:2222'
s Gross Margin % Range Over the Past 10 Years
Min: 49.39 Med: 57.2 Max: 73.2
Current: 51.87
During the past 10 years, the highestGross Margin % of Saudi Arabian Oil Co was 73.20%. The lowest was 49.39%. And the median was 57.20%.
SAU:2222's Gross Margin % is ranked better than 81.03% of 870
companies
in the Oil & Gas industry
Industry Median: 25.74
vs SAU:2222: 51.87
Saudi Arabian Oil Co had a gross margin of 55.94% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Saudi Arabian Oil Co was -2.20% per year.
Saudi Arabian Oil Co (SAU:2222) 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 Arabian Oil Co had a gross margin of 55.94% 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 Arabian Oil Co Gross Margin % Related Terms
Saudi Arabian Oil Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Saudi Arabian Oil 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.
For the Oil & Gas Integrated subindustry, Saudi Arabian Oil 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.
Saudi Arabian Oil Co Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Saudi Arabian Oil Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Saudi Arabian Oil 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.
Saudi Arabian Oil Co (SAU:2222) has a Gross Margin % of 55.94% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Saudi Arabian Oil Co and its competitors. This is near median its historical median of 57.20. Over the past decade, Saudi Arabian Oil Co's Gross Margin % has ranged from 49.39 to 73.20. According to the industry distribution chart, Saudi Arabian Oil Co ranks #165 out of 870 companies in the Oil & Gas industry, placing it in the top 19%.
Is Saudi Arabian Oil Co's Gross Margin % too high?
Saudi Arabian Oil Co's current Gross Margin % of 55.94% is near median its 10-year median of 57.20. Over the past 10 years, this metric has ranged from a low of 49.39 to a high of 73.20. The Oil & Gas industry median Gross Margin % is 25.74. Saudi Arabian Oil Co's value of 55.94% is 117.3% above this industry median. Based on the distribution chart, Saudi Arabian Oil Co ranks #165 out of 870 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Saudi Arabian Oil Co has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Saudi Arabian Oil Co's Gross Margin % compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, Saudi Arabian Oil Co ranks #165 out of 870 companies for Gross Margin %. This places Saudi Arabian Oil Co in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.74. Saudi Arabian Oil Co's value of 55.94% is 117.3% above this benchmark. Historically, Saudi Arabian Oil Co's own Gross Margin % has ranged from 49.39 to 73.20 over the past decade. While the company's 10-year median is 57.20 vs. the industry median of 25.74, Saudi Arabian Oil 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 an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.74, based on 870 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 Arabian Oil Co's current Gross Margin % of 55.94% is 117.3% 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 Arabian Oil Co and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Arabian Oil Co's current Gross Margin % is 55.94%, which is near median its own 10-year median of 57.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Arabian Oil Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Arabian Oil Co (SAU:2222) is currently considered Fairly Valued. The stock's GF Value™ is ﷼27.07, compared to a current price of ﷼26.68 — trading 1.4% below its estimated fair value. The current Gross Margin % is 55.94%, which is near median its 10-year median of 57.20 and 117.3% above the Oil & Gas industry median of 25.74. Saudi Arabian Oil Co's overall GF Score™ is 82/100 with 5 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 Arabian Oil Co (SAU:2222), the current Gross Margin % is 55.94% 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 Arabian Oil Co (SAU:2222) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Arabian Oil Co stock appears to be undervalued.
The current stock price of ﷼26.68 is trading 1.4% below its estimated GF Value™ of ﷼27.07.
GuruFocus considers Saudi Arabian Oil Co to be Fairly Valued.
Key valuation signals for SAU:2222:
Gross Margin %: 55.94% (near median its 10-year median of 57.20)
GF Value™: ﷼27.07 vs. price of ﷼26.68 (1.4% below fair value)
Industry Position: 117.3% above the Oil & Gas median (#165 of 870)
No single metric tells the full story. See the SAU:2222 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Aramco is the national oil company of Saudi Arabia and holds the exclusive right to explore for, produce, and refine the country's hydrocarbons. It is the largest oil and gas producer in the world with a production volume of 12.9 mmboe/d in 2025, including 10.7 mmboe/d of liquids. Its 4.2 mmb/d in net refining capacity makes it the world's fourth-largest refiner. It also owns 59.3 million metric tons of chemical manufacturing capacity, placing it among the top five global chemical companies.
82GF Score
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