Saudi Automotive Services CoSAU:4050 -1.11%90 Gross Margin % is 1.57% as of Mar. 2026, which is 60% below its 10-year median of 3.96. GuruFocus rates SAU:4050 with a GF Score™ of 90/100 and a GF Value™ of ﷼76.06 (Significantly Undervalued). The stock has 10 warning signs investors should review. Among 1,113 Retail - Cyclical companies, Saudi Automotive Services Co ranks worse than 97.84% on this metric.
Saudi Automotive Services Co (SAU:4050) 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 Automotive Services Co had a gross margin of 1.57% 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.
Saudi Automotive Services Co Gross Margin % Related Terms
Saudi Automotive Services 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.
SAU:4050 vs CASY, WSM, DKS: Gross Margin % Comparison
For the Specialty Retail subindustry, Saudi Automotive Services 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 Automotive Services Co Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Saudi Automotive Services Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Saudi Automotive Services 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 Automotive Services Co (SAU:4050) has a Gross Margin % of 1.57% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Saudi Automotive Services Co and its competitors. This is 60% below median its historical median of 3.96. Over the past decade, Saudi Automotive Services Co's Gross Margin % has ranged from 2.10 to 7.03. According to the industry distribution chart, Saudi Automotive Services Co ranks #1089 out of 1113 companies in the Retail - Cyclical industry, placing it in the top 97.8%.
Is Saudi Automotive Services Co's Gross Margin % too high?
Saudi Automotive Services Co's current Gross Margin % of 1.57% is 60% below median its 10-year median of 3.96. Over the past 10 years, this metric has ranged from a low of 2.10 to a high of 7.03. The Retail - Cyclical industry median Gross Margin % is 36.37. Saudi Automotive Services Co's value of 1.57% is 95.7% below this industry median. Based on the distribution chart, Saudi Automotive Services Co ranks #1089 out of 1113 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Saudi Automotive Services Co has a GF Score™ of 90/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Saudi Automotive Services Co's Gross Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Saudi Automotive Services Co ranks #1089 out of 1113 companies for Gross Margin %. This places Saudi Automotive Services Co in the lower half of its industry. The industry median Gross Margin % is 36.37. Saudi Automotive Services Co's value of 1.57% is 95.7% below this benchmark. Historically, Saudi Automotive Services Co's own Gross Margin % has ranged from 2.10 to 7.03 over the past decade. While the company's 10-year median is 3.96 vs. the industry median of 36.37, Saudi Automotive Services 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.37, based on 1,113 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 Automotive Services Co's current Gross Margin % of 1.57% is 95.7% 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 Saudi Automotive Services Co and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Automotive Services Co's current Gross Margin % is 1.57%, which is 60% below median its own 10-year median of 3.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Automotive Services Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Automotive Services Co (SAU:4050) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼76.06, compared to a current price of ﷼44.50 — trading 41.5% below its estimated fair value. The current Gross Margin % is 1.57%, which is 60% below median its 10-year median of 3.96 and 95.7% below the Retail - Cyclical industry median of 36.37. Saudi Automotive Services Co's overall GF Score™ is 90/100 with 10 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 Automotive Services Co (SAU:4050), the current Gross Margin % is 1.57% 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 Automotive Services Co (SAU:4050) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Automotive Services Co stock appears to be undervalued.
The current stock price of ﷼44.50 is trading 41.5% below its estimated GF Value™ of ﷼76.06.
GuruFocus considers Saudi Automotive Services Co to be Significantly Undervalued.
Key valuation signals for SAU:4050:
Gross Margin %: 1.57% (60% below median its 10-year median of 3.96)
GF Value™: ﷼76.06 vs. price of ﷼44.50 (41.5% below fair value)
Industry Position: 95.7% below the Retail - Cyclical median (#1089 of 1113)
No single metric tells the full story. See the SAU:4050 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Automotive Services Co owns and manages fuel stations, auto and travelers services centers, motels, restaurants, C-stores inside cities and on highways, and an auto club which issues customs traffic documents (TripTik), international driving licenses, and organizes sports activities. In addition, the group also provides road transportation services for liquid and dry materials. Along with its subsidiaries, it operates in the following segments: Retail and operations, Saudi Club, SASCO Palm, Transportation Fleet, and Others. Maximum revenue is derived from the Retail and operations segment, which represents income generated from its fuel station operations and the operation of residential and commercial buildings. Geographically, the group operates only in the Kingdom of Saudi Arabia.
90GF Score
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