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Red Sea International CoSAU:4230 -0.52%53 Gross Margin % is 12.08% as of Mar. 2026, which is 44% above its 10-year median of 8.38. GuruFocus rates SAU:4230 with a GF Score™ of 53/100 and a GF Value™ of ﷼51.22 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,640 Real Estate companies, Red Sea International Co ranks worse than 89.76% on this metric.
Red Sea International Co (SAU:4230) 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
Red Sea International Co had a gross margin of 12.08% 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.
Red Sea International Co Gross Margin % Related Terms
Red Sea International 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:4230 vs CBRE, BEKE, JLL: Gross Margin % Comparison
For the Real Estate Services subindustry, Red Sea International 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.
Red Sea International Co Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Red Sea International Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Red Sea International 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.
Red Sea International Co (SAU:4230) has a Gross Margin % of 12.08% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Red Sea International Co and its competitors. This is 44% above median its historical median of 8.38. According to the industry distribution chart, Red Sea International Co ranks #1472 out of 1640 companies in the Real Estate industry, placing it in the top 89.8%.
Is Red Sea International Co's Gross Margin % too high?
Red Sea International Co's current Gross Margin % of 12.08% is 44% above median its 10-year median of 8.38. The Real Estate industry median Gross Margin % is 36.71. Red Sea International Co's value of 12.08% is 67.1% below this industry median. Based on the distribution chart, Red Sea International Co ranks #1472 out of 1640 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Red Sea International Co has a GF Score™ of 53/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Red Sea International Co's Gross Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Red Sea International Co ranks #1472 out of 1640 companies for Gross Margin %. This places Red Sea International Co in the lower half of its industry. The industry median Gross Margin % is 36.71. Red Sea International Co's value of 12.08% is 67.1% below this benchmark. While the company's 10-year median is 8.38 vs. the industry median of 36.71, Red Sea International 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.71, based on 1,640 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. Red Sea International Co's current Gross Margin % of 12.08% is 67.1% 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 Red Sea International Co and its competitors. For the Real Estate industry, the median Gross Margin % is 36.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Red Sea International Co's current Gross Margin % is 12.08%, which is 44% above median its own 10-year median of 8.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red Sea International Co stock overvalued right now?
Based on GuruFocus' analysis, Red Sea International Co (SAU:4230) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼51.22, compared to a current price of ﷼24.82 — trading 51.5% below its estimated fair value. The current Gross Margin % is 12.08%, which is 44% above median its 10-year median of 8.38 and 67.1% below the Real Estate industry median of 36.71. Red Sea International Co's overall GF Score™ is 53/100 with 8 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 Red Sea International Co (SAU:4230), the current Gross Margin % is 12.08% 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 Red Sea International Co (SAU:4230) Overvalued in 2026?
Based on GuruFocus' analysis, Red Sea International Co stock appears to be undervalued.
The current stock price of ﷼24.82 is trading 51.5% below its estimated GF Value™ of ﷼51.22.
GuruFocus considers Red Sea International Co to be Possible Value Trap.
Key valuation signals for SAU:4230:
Gross Margin %: 12.08% (44% above median its 10-year median of 8.38)
GF Value™: ﷼51.22 vs. price of ﷼24.82 (51.5% below fair value)
Industry Position: 67.1% below the Real Estate median (#1472 of 1640)
No single metric tells the full story. See the SAU:4230 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Red Sea International Co provides modular living and working environments for industrial and residential communities. It provides civil contracting for commercial and residential buildings; offers real estate property investment and development; construction machinery, and equipment; repair and maintenance services. The company's reportable segments include: Construction, general construction, electrical works, telecommunications and other related contracts, Manufacturing and sale of non-concrete residential and commercial buildings, Manufacturing and sale of non-concrete residential and commercial buildings and Facility management and rentals of investment properties. It has a presence in Saudi Arabia, and Internationally.
53GF 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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