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Arabian Contracting Services CoSAU:4071 -0.85%81 Gross Margin % is 36.89% as of Mar. 2026, which is 17% below its 10-year median of 44.54. GuruFocus rates SAU:4071 with a GF Score™ of 81/100 and a GF Value™ of ﷼195.81 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 942 Media - Diversified companies, Arabian Contracting Services Co ranks worse than 52.02% on this metric.
Arabian Contracting Services Co (SAU:4071) 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 Contracting Services Co had a gross margin of 36.89% 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 Contracting Services Co Gross Margin % Related Terms
Arabian Contracting 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.
Arabian Contracting Services Co Gross Margin % Chart
SAU:4071 vs APP, OMC, TTD: Gross Margin % Comparison
For the Advertising Agencies subindustry, Arabian Contracting 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.
Arabian Contracting Services Co Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Arabian Contracting Services Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Arabian Contracting 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.
Arabian Contracting Services Co (SAU:4071) has a Gross Margin % of 36.89% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Arabian Contracting Services Co and its competitors. This is 17% below median its historical median of 44.54. Over the past decade, Arabian Contracting Services Co's Gross Margin % has ranged from 19.91 to 46.74. According to the industry distribution chart, Arabian Contracting Services Co ranks #490 out of 942 companies in the Media - Diversified industry, placing it in the top 52%.
Is Arabian Contracting Services Co's Gross Margin % too high?
Arabian Contracting Services Co's current Gross Margin % of 36.89% is 17% below median its 10-year median of 44.54. Over the past 10 years, this metric has ranged from a low of 19.91 to a high of 46.74. The Media - Diversified industry median Gross Margin % is 38.99. Arabian Contracting Services Co's value of 36.89% is 5.4% below this industry median. Based on the distribution chart, Arabian Contracting Services Co ranks #490 out of 942 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Arabian Contracting Services Co has a GF Score™ of 81/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Arabian Contracting Services Co's Gross Margin % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, Arabian Contracting Services Co ranks #490 out of 942 companies for Gross Margin %. This places Arabian Contracting Services Co in the lower half of its industry. The industry median Gross Margin % is 38.99. Arabian Contracting Services Co's value of 36.89% is 5.4% below this benchmark. Historically, Arabian Contracting Services Co's own Gross Margin % has ranged from 19.91 to 46.74 over the past decade. While the company's 10-year median is 44.54 vs. the industry median of 38.99, Arabian Contracting 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 Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.99, based on 942 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 Contracting Services Co's current Gross Margin % of 36.89% is 5.4% 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 Arabian Contracting Services Co and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Contracting Services Co's current Gross Margin % is 36.89%, which is 17% below median its own 10-year median of 44.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Contracting Services Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Contracting Services Co (SAU:4071) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼195.81, compared to a current price of ﷼81.45 — trading 58.4% below its estimated fair value. The current Gross Margin % is 36.89%, which is 17% below median its 10-year median of 44.54 and 5.4% below the Media - Diversified industry median of 38.99. Arabian Contracting Services Co's overall GF Score™ is 81/100 with 9 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 Contracting Services Co (SAU:4071), the current Gross Margin % is 36.89% 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 Contracting Services Co (SAU:4071) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Contracting Services Co stock appears to be undervalued.
The current stock price of ﷼81.45 is trading 58.4% below its estimated GF Value™ of ﷼195.81.
GuruFocus considers Arabian Contracting Services Co to be Possible Value Trap.
Key valuation signals for SAU:4071:
Gross Margin %: 36.89% (17% below median its 10-year median of 44.54)
GF Value™: ﷼195.81 vs. price of ﷼81.45 (58.4% below fair value)
Industry Position: 5.4% below the Media - Diversified median (#490 of 942)
No single metric tells the full story. See the SAU:4071 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Contracting Services Co Business Description
Arabian Contracting Services Co is an outdoor advertising solution provider, offering clients expertise across a multitude of platforms and disciplines. It is mainly engaged in establishing and operating outdoor advertising billboards, including roadside and indoor advertisements. The group's operating segments are Advertising and Others. The Advertising segment, which generates a majority of its revenue, is engaged in the provision of indoor and outdoor advertisements. The Others segment includes all types of printing work and retail sales by mail. Geographically, the group derives maximum revenue from its business in the Kingdom of Saudi Arabia, and also has a presence in the Arab Republic of Egypt and the United Arab Emirates.
81GF Score
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