Al-Babtain Power & Telecommunication Co (SAU:2320) 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
Al-Babtain Power & Telecommunication Co had a gross margin of 25.04% 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.
Al-Babtain Power & Telecommunication Co Gross Margin % Related Terms
Al-Babtain Power & Telecommunication 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.
Al-Babtain Power & Telecommunication Co Gross Margin % Chart
Al-Babtain Power & Telecommunication Co Annual Data
SAU:2320 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Al-Babtain Power & Telecommunication 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.
Al-Babtain Power & Telecommunication Co Gross Margin % vs Construction 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.
Al-Babtain Power & Telecommunication Co (SAU:2320) has a Gross Margin % of 25.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Al-Babtain Power & Telecommunication Co and its competitors. This is 55% above median its historical median of 16.13. Over the past decade, Al-Babtain Power & Telecommunication Co's Gross Margin % has ranged from 12.23 to 25.92. According to the industry distribution chart, Al-Babtain Power & Telecommunication Co ranks #724 out of 1720 companies in the Construction industry, placing it in the top 42.1%.
Is Al-Babtain Power & Telecommunication Co's Gross Margin % too high?
Al-Babtain Power & Telecommunication Co's current Gross Margin % of 25.04% is 55% above median its 10-year median of 16.13. Over the past 10 years, this metric has ranged from a low of 12.23 to a high of 25.92. The Construction industry median Gross Margin % is 20.72. Al-Babtain Power & Telecommunication Co's value of 25.04% is 20.9% above this industry median. Based on the distribution chart, Al-Babtain Power & Telecommunication Co ranks #724 out of 1720 companies in the Construction industry, which is above the industry midpoint. Overall, Al-Babtain Power & Telecommunication Co has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Al-Babtain Power & Telecommunication Co's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Al-Babtain Power & Telecommunication Co ranks #724 out of 1720 companies for Gross Margin %. This puts Al-Babtain Power & Telecommunication Co in the upper half of its industry. The industry median Gross Margin % is 20.72. Al-Babtain Power & Telecommunication Co's value of 25.04% is 20.9% above this benchmark. Historically, Al-Babtain Power & Telecommunication Co's own Gross Margin % has ranged from 12.23 to 25.92 over the past decade. While the company's 10-year median is 16.13 vs. the industry median of 20.72, Al-Babtain Power & Telecommunication 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 Construction company?
The median Gross Margin % among Construction companies is 20.72, based on 1,720 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. Al-Babtain Power & Telecommunication Co's current Gross Margin % of 25.04% is 20.9% 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 Al-Babtain Power & Telecommunication Co and its competitors. For the Construction industry, the median Gross Margin % is 20.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al-Babtain Power & Telecommunication Co's current Gross Margin % is 25.04%, which is 55% above median its own 10-year median of 16.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al-Babtain Power & Telecommunication Co stock overvalued right now?
Based on GuruFocus' analysis, Al-Babtain Power & Telecommunication Co (SAU:2320) is currently considered Significantly Overvalued. The stock's GF Value™ is ﷼47.73, compared to a current price of ﷼63.50 — trading 33% above its estimated fair value. The current Gross Margin % is 25.04%, which is 55% above median its 10-year median of 16.13 and 20.9% above the Construction industry median of 20.72. Al-Babtain Power & Telecommunication Co's overall GF Score™ is 68/100 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 Al-Babtain Power & Telecommunication Co (SAU:2320), the current Gross Margin % is 25.04% 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 Al-Babtain Power & Telecommunication Co (SAU:2320) Overvalued in 2026?
Based on GuruFocus' analysis, Al-Babtain Power & Telecommunication Co stock appears to be overvalued.
The current stock price of ﷼63.50 is trading 33% above its estimated GF Value™ of ﷼47.73.
GuruFocus considers Al-Babtain Power & Telecommunication Co to be Significantly Overvalued.
Key valuation signals for SAU:2320:
Gross Margin %: 25.04% (55% above median its 10-year median of 16.13)
GF Value™: ﷼47.73 vs. price of ﷼63.50 (33% above fair value)
Industry Position: 20.9% above the Construction median (#724 of 1720)
No single metric tells the full story. See the SAU:2320 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al-Babtain Power & Telecommunication Co Business Description
Al-Babtain Power & Telecommunication Co designs and manufactures poles, masts, and lighting systems for streets, stadiums, and public spaces, as well as towers and poles for power transmission and telecommunications. The company also produces and markets decorative poles and LED lighting, and provides installation, operation, and maintenance services for telecommunications systems, computer networks, and industrial equipment. In addition, it manufactures metal components such as solar photovoltaic tracking systems and fixed structures, supports wind energy and power generation projects, and undertakes electrical and mechanical works, communication system design and installation, as well as contracting and oil and gas field services.
68GF Score
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