Makkah Construction & Development Co (SAU:4100) 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
Makkah Construction & Development Co had a gross margin of 74.28% for the quarter that ended in Mar. 2026 => Durable 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.
Makkah Construction & Development Co Gross Margin % Related Terms
Makkah Construction & Development 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.
Makkah Construction & Development Co Gross Margin % Chart
SAU:4100 vs MAR, HLT, H: Gross Margin % Comparison
For the Lodging subindustry, Makkah Construction & Development 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.
Makkah Construction & Development Co Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Makkah Construction & Development Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Makkah Construction & Development 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.
Makkah Construction & Development Co (SAU:4100) has a Gross Margin % of 74.28% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Makkah Construction & Development Co and its competitors. This is 44% above median its historical median of 51.60. According to the industry distribution chart, Makkah Construction & Development Co ranks #343 out of 793 companies in the Travel & Leisure industry, placing it in the top 43.3%.
Is Makkah Construction & Development Co's Gross Margin % too high?
Makkah Construction & Development Co's current Gross Margin % of 74.28% is 44% above median its 10-year median of 51.60. The Travel & Leisure industry median Gross Margin % is 43.92. Makkah Construction & Development Co's value of 74.28% is 69.1% above this industry median. Based on the distribution chart, Makkah Construction & Development Co ranks #343 out of 793 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Makkah Construction & Development Co has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Makkah Construction & Development Co's Gross Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Makkah Construction & Development Co ranks #343 out of 793 companies for Gross Margin %. This puts Makkah Construction & Development Co in the upper half of its industry. The industry median Gross Margin % is 43.92. Makkah Construction & Development Co's value of 74.28% is 69.1% above this benchmark. While the company's 10-year median is 51.60 vs. the industry median of 43.92, Makkah Construction & Development 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 Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 43.92, based on 793 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. Makkah Construction & Development Co's current Gross Margin % of 74.28% is 69.1% 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 Makkah Construction & Development Co and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 43.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Makkah Construction & Development Co's current Gross Margin % is 74.28%, which is 44% above median its own 10-year median of 51.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Makkah Construction & Development Co stock overvalued right now?
Based on GuruFocus' analysis, Makkah Construction & Development Co (SAU:4100) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼110.87, compared to a current price of ﷼85.95 — trading 22.5% below its estimated fair value. The current Gross Margin % is 74.28%, which is 44% above median its 10-year median of 51.60 and 69.1% above the Travel & Leisure industry median of 43.92. Makkah Construction & Development Co's overall GF Score™ is 92/100 with 6 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 Makkah Construction & Development Co (SAU:4100), the current Gross Margin % is 74.28% 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 Makkah Construction & Development Co (SAU:4100) Overvalued in 2026?
Based on GuruFocus' analysis, Makkah Construction & Development Co stock appears to be undervalued.
The current stock price of ﷼85.95 is trading 22.5% below its estimated GF Value™ of ﷼110.87.
GuruFocus considers Makkah Construction & Development Co to be Modestly Undervalued.
Key valuation signals for SAU:4100:
Gross Margin %: 74.28% (44% above median its 10-year median of 51.60)
GF Value™: ﷼110.87 vs. price of ﷼85.95 (22.5% below fair value)
Industry Position: 69.1% above the Travel & Leisure median (#343 of 793)
No single metric tells the full story. See the SAU:4100 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Makkah Construction & Development Co Business Description
Makkah Construction & Development Co is engaged in developing construction projects such as developing facilities near the Holy Mosque of Makkah. The company's objectives are to Build up the areas around Makkah Holy mosque, own, develop, operate, and invest in the real estate around Makkah Holy mosque, and carry out all engineering works, survey, demolishing & construction works for the company projects. The segments of the company include: The Commercial Center; Hotels and towers; Hajj and Umrah; Investment sector; and Other (not specified). It derives maximum revenue from Hotels and Towers segment. The projects of the company include: Jabal Omar Development Company; Masar Project; and Jarahm Project.
92GF 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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