Yanbu National Petrochemicals Co (SAU:2290) 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
Yanbu National Petrochemicals Co had a gross margin of 11.61% 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.
Yanbu National Petrochemicals Co Gross Margin % Related Terms
Yanbu National Petrochemicals Co 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.
Yanbu National Petrochemicals Co Gross Margin % Chart
For the Chemicals subindustry, Yanbu National Petrochemicals 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.
Yanbu National Petrochemicals Co Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Yanbu National Petrochemicals Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Yanbu National Petrochemicals 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.
Yanbu National Petrochemicals Co (SAU:2290) has a Gross Margin % of 11.61% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Yanbu National Petrochemicals Co and its competitors. This is 50% below median its historical median of 23.16. According to the industry distribution chart, Yanbu National Petrochemicals Co ranks #1229 out of 1555 companies in the Chemicals industry, placing it in the top 79%.
Is Yanbu National Petrochemicals Co's Gross Margin % too high?
Yanbu National Petrochemicals Co's current Gross Margin % of 11.61% is 50% below median its 10-year median of 23.16. The Chemicals industry median Gross Margin % is 23.44. Yanbu National Petrochemicals Co's value of 11.61% is 50.5% below this industry median. Based on the distribution chart, Yanbu National Petrochemicals Co ranks #1229 out of 1555 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Yanbu National Petrochemicals Co has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Yanbu National Petrochemicals Co's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Yanbu National Petrochemicals Co ranks #1229 out of 1555 companies for Gross Margin %. This places Yanbu National Petrochemicals Co in the lower half of its industry. The industry median Gross Margin % is 23.44. Yanbu National Petrochemicals Co's value of 11.61% is 50.5% below this benchmark. While the company's 10-year median is 23.16 vs. the industry median of 23.44, Yanbu National Petrochemicals Co 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 23.44, based on 1,555 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. Yanbu National Petrochemicals Co's current Gross Margin % of 11.61% is 50.5% 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 Yanbu National Petrochemicals Co and its competitors. For the Chemicals industry, the median Gross Margin % is 23.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yanbu National Petrochemicals Co's current Gross Margin % is 11.61%, which is 50% below median its own 10-year median of 23.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yanbu National Petrochemicals Co stock overvalued right now?
Based on GuruFocus' analysis, Yanbu National Petrochemicals Co (SAU:2290) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼37.21, compared to a current price of ﷼29.20 — trading 21.5% below its estimated fair value. The current Gross Margin % is 11.61%, which is 50% below median its 10-year median of 23.16 and 50.5% below the Chemicals industry median of 23.44. Yanbu National Petrochemicals Co's overall GF Score™ is 81/100 with 3 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 Yanbu National Petrochemicals Co (SAU:2290), the current Gross Margin % is 11.61% 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 Yanbu National Petrochemicals Co (SAU:2290) Overvalued in 2026?
Based on GuruFocus' analysis, Yanbu National Petrochemicals Co stock appears to be undervalued.
The current stock price of ﷼29.20 is trading 21.5% below its estimated GF Value™ of ﷼37.21.
GuruFocus considers Yanbu National Petrochemicals Co to be Modestly Undervalued.
Key valuation signals for SAU:2290:
Gross Margin %: 11.61% (50% below median its 10-year median of 23.16)
GF Value™: ﷼37.21 vs. price of ﷼29.20 (21.5% below fair value)
Industry Position: 50.5% below the Chemicals median (#1229 of 1555)
No single metric tells the full story. See the SAU:2290 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yanbu National Petrochemicals Co Business Description
Yanbu National Petrochemicals Co is engaged in the manufacturing of petrochemical products. It focuses on producing ethylene, propylene, ethylene glycol, low leaner density polyethylene, high density polyethylene, polypropylene, MTBE, butene and BTX . The company generates revenue from the sale of its petrochemical products in the Kingdom of Saudi Arabia.
81GF Score
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