Dar Alarkan Real Estate Development Co (SAU:4300) 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
Dar Alarkan Real Estate Development Co had a gross margin of 45.83% 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.
Dar Alarkan Real Estate Development Co Gross Margin % Related Terms
Dar Alarkan Real Estate 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.
Dar Alarkan Real Estate Development Co Gross Margin % Chart
Dar Alarkan Real Estate Development Co Annual Data
Dar Alarkan Real Estate Development Co Gross Margin % Competitor Comparison
For the Real Estate - Development subindustry, Dar Alarkan Real Estate 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.
Dar Alarkan Real Estate Development Co Gross Margin % vs Real Estate Industry
* 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.
Dar Alarkan Real Estate Development Co (SAU:4300) has a Gross Margin % of 45.83% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Dar Alarkan Real Estate Development Co and its competitors. This is 25% above median its historical median of 36.55. Over the past decade, Dar Alarkan Real Estate Development Co's Gross Margin % has ranged from 16.49 to 47.69. According to the industry distribution chart, Dar Alarkan Real Estate Development Co ranks #630 out of 1642 companies in the Real Estate industry, placing it in the top 38.4%.
Is Dar Alarkan Real Estate Development Co's Gross Margin % too high?
Dar Alarkan Real Estate Development Co's current Gross Margin % of 45.83% is 25% above median its 10-year median of 36.55. Over the past 10 years, this metric has ranged from a low of 16.49 to a high of 47.69. The Real Estate industry median Gross Margin % is 37.00. Dar Alarkan Real Estate Development Co's value of 45.83% is 23.9% above this industry median. Based on the distribution chart, Dar Alarkan Real Estate Development Co ranks #630 out of 1642 companies in the Real Estate industry, which is above the industry midpoint. Overall, Dar Alarkan Real Estate Development Co has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dar Alarkan Real Estate Development Co's Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, Dar Alarkan Real Estate Development Co ranks #630 out of 1642 companies for Gross Margin %. This puts Dar Alarkan Real Estate Development Co in the upper half of its industry. The industry median Gross Margin % is 37.00. Dar Alarkan Real Estate Development Co's value of 45.83% is 23.9% above this benchmark. Historically, Dar Alarkan Real Estate Development Co's own Gross Margin % has ranged from 16.49 to 47.69 over the past decade. While the company's 10-year median is 36.55 vs. the industry median of 37.00, Dar Alarkan Real Estate 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 37.00, based on 1,642 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. Dar Alarkan Real Estate Development Co's current Gross Margin % of 45.83% is 23.9% 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 Dar Alarkan Real Estate Development Co and its competitors. For the Real Estate industry, the median Gross Margin % is 37.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dar Alarkan Real Estate Development Co's current Gross Margin % is 45.83%, which is 25% above median its own 10-year median of 36.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dar Alarkan Real Estate Development Co stock overvalued right now?
Based on GuruFocus' analysis, Dar Alarkan Real Estate Development Co (SAU:4300) is currently considered Fairly Valued. The stock's GF Value™ is ﷼20.32, compared to a current price of ﷼18.40 — trading 9.4% below its estimated fair value. The current Gross Margin % is 45.83%, which is 25% above median its 10-year median of 36.55 and 23.9% above the Real Estate industry median of 37.00. Dar Alarkan Real Estate Development Co's overall GF Score™ is 91/100 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 Dar Alarkan Real Estate Development Co (SAU:4300), the current Gross Margin % is 45.83% 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 Dar Alarkan Real Estate Development Co (SAU:4300) Overvalued in 2026?
Based on GuruFocus' analysis, Dar Alarkan Real Estate Development Co stock appears to be undervalued.
The current stock price of ﷼18.40 is trading 9.4% below its estimated GF Value™ of ﷼20.32.
GuruFocus considers Dar Alarkan Real Estate Development Co to be Fairly Valued.
Key valuation signals for SAU:4300:
Gross Margin %: 45.83% (25% above median its 10-year median of 36.55)
GF Value™: ﷼20.32 vs. price of ﷼18.40 (9.4% below fair value)
Industry Position: 23.9% above the Real Estate median (#630 of 1642)
No single metric tells the full story. See the SAU:4300 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dar Alarkan Real Estate Development Co Business Description
Dar Alarkan Real Estate Development Company along with its subsidiaries is engaged in the business of development, sale and leasing of real estate projects and associated activities. The company operates in reportable segments namely, Development properties, Leasing of properties and others. The majority of the revenue is generated from the development properties segment. The group mainly operates in Saudi Arabia.
91GF Score
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