Najran Cement Co (SAU:3002) Gross Margin %: 18.59% (As of Mar. 2026) — 33% Below Median

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SAU:3002 Najran Cement Co SAU:3002
59 GF Score
Price ﷼5.69
GF Value ﷼9.22
Valuation Possible Value Trap
! 7 Warning Signs
View Full Analysis

What is Najran Cement Co Gross Margin %?

Najran Cement Co SAU:3002 -0.18% 59 Gross Margin % is 18.59% as of Mar. 2026, which is 33% below its 10-year median of 27.90. GuruFocus rates SAU:3002 with a GF Score™ of 59/100 and a GF Value™ of ﷼9.22 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 396 Building Materials companies, Najran Cement Co ranks worse than 66.16% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Najran Cement Co's Gross Profit for the three months ended in Mar. 2026 was ﷼22.9 Mil. Najran Cement Co's Revenue for the three months ended in Mar. 2026 was ﷼123.0 Mil. Therefore, Najran Cement Co's Gross Margin % for the quarter that ended in Mar. 2026 was 18.59%.

Warning Sign:

Najran Cement Co gross margin has been in long-term decline. The average rate of decline per year is -12%.


The historical rank and industry rank for Najran Cement Co's Gross Margin % or its related term are showing as below:

SAU:3002' s Gross Margin % Range Over the Past 10 Years
Min: -5.01   Med: 27.9   Max: 40.1
Current: 19.67


During the past 13 years, the highest Gross Margin % of Najran Cement Co was 40.10%. The lowest was -5.01%. And the median was 27.90%.

SAU:3002's Gross Margin % is ranked worse than
66.16% of 396 companies
in the Building Materials industry
Industry Median: 26.19 vs SAU:3002: 19.67

Najran Cement Co had a gross margin of 18.59% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Najran Cement Co was -12.00% per year.


Najran Cement Co  (SAU:3002) 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

Najran Cement Co had a gross margin of 18.59% 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.


Najran Cement Co Gross Margin % Related Terms


Najran Cement Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Najran Cement 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.

Najran Cement Co Gross Margin % Chart

Najran Cement Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 39.60 31.88 26.39 27.17 21.33

Najran Cement Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.02 17.22 17.44 24.99 18.59

SAU:3002 vs CRH, VMC, MLM: Gross Margin % Comparison

For the Building Materials subindustry, Najran Cement 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.


Najran Cement Co Gross Margin % vs Building Materials Industry

For the Building Materials industry and Basic Materials sector, Najran Cement Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Najran Cement Co's Gross Margin % falls into.


SAU:3002
59GF Score
Najran Cement Co SAU:3002
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Najran Cement Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Najran Cement Co's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=110.1 / 516.125
=(Revenue - Cost of Goods Sold) / Revenue
=(516.125 - 406.05) / 516.125
=21.33 %

Najran Cement Co's Gross Margin for the quarter that ended in Mar. 2026 is calculated as


Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=22.9 / 123.018
=(Revenue - Cost of Goods Sold) / Revenue
=(123.018 - 100.146) / 123.018
=18.59 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 18.59% mean?
Najran Cement Co (SAU:3002) has a Gross Margin % of 18.59% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Najran Cement Co and its competitors. This is 33% below median its historical median of 27.90. According to the industry distribution chart, Najran Cement Co ranks #262 out of 396 companies in the Building Materials industry, placing it in the top 66.2%.
Is Najran Cement Co's Gross Margin % too high?
Najran Cement Co's current Gross Margin % of 18.59% is 33% below median its 10-year median of 27.90. The Building Materials industry median Gross Margin % is 26.19. Najran Cement Co's value of 18.59% is 29% below this industry median. Based on the distribution chart, Najran Cement Co ranks #262 out of 396 companies in the Building Materials industry, which is below the industry midpoint. Overall, Najran Cement Co has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Najran Cement Co's Gross Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Najran Cement Co ranks #262 out of 396 companies for Gross Margin %. This places Najran Cement Co in the lower half of its industry. The industry median Gross Margin % is 26.19. Najran Cement Co's value of 18.59% is 29% below this benchmark. While the company's 10-year median is 27.90 vs. the industry median of 26.19, Najran Cement 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 Building Materials company?
The median Gross Margin % among Building Materials companies is 26.19, based on 396 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. Najran Cement Co's current Gross Margin % of 18.59% is 29% 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 Najran Cement Co and its competitors. For the Building Materials industry, the median Gross Margin % is 26.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Najran Cement Co's current Gross Margin % is 18.59%, which is 33% below median its own 10-year median of 27.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Najran Cement Co stock overvalued right now?
Based on GuruFocus' analysis, Najran Cement Co (SAU:3002) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼9.22, compared to a current price of ﷼5.69 — trading 38.3% below its estimated fair value. The current Gross Margin % is 18.59%, which is 33% below median its 10-year median of 27.90 and 29% below the Building Materials industry median of 26.19. Najran Cement Co's overall GF Score™ is 59/100 with 7 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 Najran Cement Co (SAU:3002), the current Gross Margin % is 18.59% 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 Najran Cement Co (SAU:3002) Overvalued in 2026?

Based on GuruFocus' analysis, Najran Cement Co stock appears to be undervalued. The current stock price of ﷼5.69 is trading 38.3% below its estimated GF Value™ of ﷼9.22. GuruFocus considers Najran Cement Co to be Possible Value Trap.

Key valuation signals for SAU:3002:

  • Gross Margin %: 18.59% (33% below median its 10-year median of 27.90)
  • GF Value™: ﷼9.22 vs. price of ﷼5.69 (38.3% below fair value)
  • GF Score™: 59/100 with 7 warning signs
  • Industry Position: 29% below the Building Materials median (#262 of 396)

No single metric tells the full story. See the SAU:3002 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Najran Cement Co Business Description

Address 9204 King Saud Road, PO Box 1006, Najran, SAU, 66256
Najran Cement Co is a Saudi Arabia-based company engaged in the business of manufacturing ordinary portland cement and cement resistant to salts. Its product portfolio comprises ordinary portland cement, portland sulphate resistant cement, portland pozzolanic cement, Lyasah, and Lyasah plus cement. Additionally, the company offers an integrated electronic service for selling and delivering cement to its business customers (companies and institutions) through the Wasel App. It is engaged in one operating segment, i.e., manufacturing cement. Geographically, Najran Cement generates the majority of its revenue from the local market, and to a lesser extent, also exports its products to other countries.
59GF Score

Get the complete analysis for SAU:3002

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

﷼5.69
Price
﷼9.22
GF Value