Arabian Cement CoSAU:3010 +0.66%87 Gross Margin % is 31.02% as of Mar. 2026, which is 7% above its 10-year median of 29.09. GuruFocus rates SAU:3010 with a GF Score™ of 87/100 and a GF Value™ of ﷼32.73 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 396 Building Materials companies, Arabian Cement Co ranks better than 51.26% on this metric.
Arabian Cement Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.1%.
The historical rank and industry rank for Arabian Cement Co's Gross Margin % or its related term are showing as below:
SAU:3010'
s Gross Margin % Range Over the Past 10 Years
Min: 6.3 Med: 29.09 Max: 43.88
Current: 26.57
During the past 13 years, the highestGross Margin % of Arabian Cement Co was 43.88%. The lowest was 6.30%. And the median was 29.09%.
SAU:3010's Gross Margin % is ranked better than 51.26% of 396
companies
in the Building Materials industry
Industry Median: 26.155
vs SAU:3010: 26.57
Arabian Cement Co had a gross margin of 31.02% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Arabian Cement Co was -6.10% per year.
Arabian Cement Co (SAU:3010) 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 Cement Co had a gross margin of 31.02% 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.
Arabian Cement Co Gross Margin % Related Terms
Arabian Cement Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Arabian 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.
SAU:3010 vs CRH, VMC, MLM: Gross Margin % Comparison
For the Building Materials subindustry, Arabian 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.
Arabian Cement Co Gross Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Arabian Cement Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Arabian Cement 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 Cement Co (SAU:3010) has a Gross Margin % of 31.02% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Arabian Cement Co and its competitors. This is near median its historical median of 29.09. Over the past decade, Arabian Cement Co's Gross Margin % has ranged from 6.30 to 43.88. According to the industry distribution chart, Arabian Cement Co ranks #193 out of 396 companies in the Building Materials industry, placing it in the top 48.7%.
Is Arabian Cement Co's Gross Margin % too high?
Arabian Cement Co's current Gross Margin % of 31.02% is near median its 10-year median of 29.09. Over the past 10 years, this metric has ranged from a low of 6.30 to a high of 43.88. The Building Materials industry median Gross Margin % is 26.16. Arabian Cement Co's value of 31.02% is 18.6% above this industry median. Based on the distribution chart, Arabian Cement Co ranks #193 out of 396 companies in the Building Materials industry, which is above the industry midpoint. Overall, Arabian Cement Co has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arabian Cement Co's Gross Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Arabian Cement Co ranks #193 out of 396 companies for Gross Margin %. This puts Arabian Cement Co in the upper half of its industry. The industry median Gross Margin % is 26.16. Arabian Cement Co's value of 31.02% is 18.6% above this benchmark. Historically, Arabian Cement Co's own Gross Margin % has ranged from 6.30 to 43.88 over the past decade. While the company's 10-year median is 29.09 vs. the industry median of 26.16, Arabian Cement 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 Building Materials company?
The median Gross Margin % among Building Materials companies is 26.16, 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. Arabian Cement Co's current Gross Margin % of 31.02% is 18.6% 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 Cement Co and its competitors. For the Building Materials industry, the median Gross Margin % is 26.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Cement Co's current Gross Margin % is 31.02%, which is near median its own 10-year median of 29.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Cement Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Cement Co (SAU:3010) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼32.73, compared to a current price of ﷼23.00 — trading 29.7% below its estimated fair value. The current Gross Margin % is 31.02%, which is near median its 10-year median of 29.09 and 18.6% above the Building Materials industry median of 26.16. Arabian Cement Co's overall GF Score™ is 87/100 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 Arabian Cement Co (SAU:3010), the current Gross Margin % is 31.02% 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 Cement Co (SAU:3010) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Cement Co stock appears to be undervalued.
The current stock price of ﷼23.00 is trading 29.7% below its estimated GF Value™ of ﷼32.73.
GuruFocus considers Arabian Cement Co to be Significantly Undervalued.
Key valuation signals for SAU:3010:
Gross Margin %: 31.02% (near median its 10-year median of 29.09)
GF Value™: ﷼32.73 vs. price of ﷼23.00 (29.7% below fair value)
Industry Position: 18.6% above the Building Materials median (#193 of 396)
No single metric tells the full story. See the SAU:3010 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Cement Co Ltd operates as a cement company in the Kingdom of Saudi Arabia and the Arabian Gulf region. Along with its subsidiaries, the company is engaged in the production of cement, building materials, trading of clinker, cement, construction materials, and other related materials and derivatives. The company's geographical segments include Inside KSA and the Outside Kingdom of Saudi Arabia. It derives a majority of its revenue from Inside KSA.
87GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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