Sumou Real Estate Co (SAU:4323) Gross Margin %: 25.91% (As of Mar. 2026) — 39% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

SAU:4323 Sumou Real Estate Co SAU:4323
85 GF Score
Price ﷼26.40
GF Value ﷼74.31
Valuation Significantly Undervalued
! 6 Warning Signs
View Full Analysis

What is Sumou Real Estate Co Gross Margin %?

Sumou Real Estate Co SAU:4323 -1.57% 85 Gross Margin % is 25.91% as of Mar. 2026, which is 39% below its 10-year median of 42.38. GuruFocus rates SAU:4323 with a GF Score™ of 85/100 and a GF Value™ of ﷼74.31 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 1,641 Real Estate companies, Sumou Real Estate Co ranks worse than 63.25% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Sumou Real Estate Co's Gross Profit for the three months ended in Mar. 2026 was ﷼48.1 Mil. Sumou Real Estate Co's Revenue for the three months ended in Mar. 2026 was ﷼185.5 Mil. Therefore, Sumou Real Estate Co's Gross Margin % for the quarter that ended in Mar. 2026 was 25.91%.

Warning Sign:

Sumou Real Estate Co gross margin has been in long-term decline. The average rate of decline per year is -20%.


The historical rank and industry rank for Sumou Real Estate Co's Gross Margin % or its related term are showing as below:

SAU:4323' s Gross Margin % Range Over the Past 10 Years
Min: 25.34   Med: 42.38   Max: 89.83
Current: 27.95


During the past 7 years, the highest Gross Margin % of Sumou Real Estate Co was 89.83%. The lowest was 25.34%. And the median was 42.38%.

SAU:4323's Gross Margin % is ranked worse than
63.25% of 1641 companies
in the Real Estate industry
Industry Median: 36.47 vs SAU:4323: 27.95

Sumou Real Estate Co had a gross margin of 25.91% for the quarter that ended in Mar. 2026 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Sumou Real Estate Co was -20.00% per year.


Sumou Real Estate Co  (SAU:4323) 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

Sumou Real Estate Co had a gross margin of 25.91% 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.


Sumou Real Estate Co Gross Margin % Related Terms


Sumou Real Estate Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Sumou Real Estate Co's Gross Margin % can be seen below:

* 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.

Sumou Real Estate Co Gross Margin % Chart

Sumou Real Estate Co Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial 59.72 27.16 42.38 25.34 28.73

Sumou Real Estate Co Quarterly Data
Jun20 Dec20 Jun21 Dec21 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.28 24.00 39.89 22.09 25.91

Sumou Real Estate Co Gross Margin % Competitor Comparison

For the Real Estate - Development subindustry, Sumou Real Estate 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.


Sumou Real Estate Co Gross Margin % vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Sumou Real Estate Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Sumou Real Estate Co's Gross Margin % falls into.


SAU:4323
85GF Score
Sumou Real Estate Co SAU:4323
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sumou Real Estate Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Sumou Real Estate Co's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=150.2 / 522.688
=(Revenue - Cost of Goods Sold) / Revenue
=(522.688 - 372.504) / 522.688
=28.73 %

Sumou Real Estate Co's Gross Margin for the quarter that ended in Mar. 2026 is calculated as


Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=48.1 / 185.531
=(Revenue - Cost of Goods Sold) / Revenue
=(185.531 - 137.466) / 185.531
=25.91 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 25.91% mean?
Sumou Real Estate Co (SAU:4323) has a Gross Margin % of 25.91% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sumou Real Estate Co and its competitors. This is 39% below median its historical median of 42.38. Over the past decade, Sumou Real Estate Co's Gross Margin % has ranged from 25.34 to 89.83. According to the industry distribution chart, Sumou Real Estate Co ranks #1038 out of 1641 companies in the Real Estate industry, placing it in the top 63.3%.
Is Sumou Real Estate Co's Gross Margin % too high?
Sumou Real Estate Co's current Gross Margin % of 25.91% is 39% below median its 10-year median of 42.38. Over the past 10 years, this metric has ranged from a low of 25.34 to a high of 89.83. The Real Estate industry median Gross Margin % is 36.47. Sumou Real Estate Co's value of 25.91% is 29% below this industry median. Based on the distribution chart, Sumou Real Estate Co ranks #1038 out of 1641 companies in the Real Estate industry, which is below the industry midpoint. Overall, Sumou Real Estate Co has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sumou Real Estate Co's Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, Sumou Real Estate Co ranks #1038 out of 1641 companies for Gross Margin %. This places Sumou Real Estate Co in the lower half of its industry. The industry median Gross Margin % is 36.47. Sumou Real Estate Co's value of 25.91% is 29% below this benchmark. Historically, Sumou Real Estate Co's own Gross Margin % has ranged from 25.34 to 89.83 over the past decade. While the company's 10-year median is 42.38 vs. the industry median of 36.47, Sumou Real Estate 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 36.47, based on 1,641 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. Sumou Real Estate Co's current Gross Margin % of 25.91% is 29% 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 Sumou Real Estate Co and its competitors. For the Real Estate industry, the median Gross Margin % is 36.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumou Real Estate Co's current Gross Margin % is 25.91%, which is 39% below median its own 10-year median of 42.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumou Real Estate Co stock overvalued right now?
Based on GuruFocus' analysis, Sumou Real Estate Co (SAU:4323) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼74.31, compared to a current price of ﷼26.40 — trading 64.5% below its estimated fair value. The current Gross Margin % is 25.91%, which is 39% below median its 10-year median of 42.38 and 29% below the Real Estate industry median of 36.47. Sumou Real Estate Co's overall GF Score™ is 85/100 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 Sumou Real Estate Co (SAU:4323), the current Gross Margin % is 25.91% 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 Sumou Real Estate Co (SAU:4323) Overvalued in 2026?

Based on GuruFocus' analysis, Sumou Real Estate Co stock appears to be undervalued. The current stock price of ﷼26.40 is trading 64.5% below its estimated GF Value™ of ﷼74.31. GuruFocus considers Sumou Real Estate Co to be Significantly Undervalued.

Key valuation signals for SAU:4323:

  • Gross Margin %: 25.91% (39% below median its 10-year median of 42.38)
  • GF Value™: ﷼74.31 vs. price of ﷼26.40 (64.5% below fair value)
  • GF Score™: 85/100 with 6 warning signs
  • Industry Position: 29% below the Real Estate median (#1038 of 1641)

No single metric tells the full story. See the SAU:4323 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sumou Real Estate Co Business Description

Address Prince Turki bin Abdulaziz street, Sumou Tower, P.O. Box 250, Al-Yarmouk District, Al Khobar, SAU, 31952
Sumou Real Estate Co operates in the real estate sector in the Kingdom of Saudi Arabia. It is engaged in the general construction of residential buildings and non-residential buildings (such as schools, hospitals, etc.), construction of airports and their facilities, on-site construction of prefabricated buildings, renovation of residential and non-residential buildings, purchase and sale of land and real estate, land subdivision, and off-plan sales activities. Additionally, the Group is involved in real estate brokerage, property management, real estate contributions, and the management and leasing of owned or leased properties. Its reportable segments are: Real estate projects development, which generates the maximum revenue; Real estate project management, Investments, and Others.
85GF Score

Get the complete analysis for SAU:4323

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

﷼26.40
Price
﷼74.31
GF Value