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Herfy Food Services CoSAU:6002 -3.16%74 Gross Margin % is 28.30% as of Mar. 2026, which is 7% above its 10-year median of 26.40. GuruFocus rates SAU:6002 with a GF Score™ of 74/100 and a GF Value™ of ﷼23.95 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 354 Restaurants companies, Herfy Food Services Co ranks worse than 80.23% on this metric.
SAU:6002's Gross Margin % is ranked worse than 80.23% of 354
companies
in the Restaurants industry
Industry Median: 45.685
vs SAU:6002: 25.19
Herfy Food Services Co had a gross margin of 28.30% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Herfy Food Services Co was -3.80% per year.
Herfy Food Services Co (SAU:6002) 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
Herfy Food Services Co had a gross margin of 28.30% 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.
Herfy Food Services Co Gross Margin % Related Terms
Herfy Food Services Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Herfy Food Services 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.
SAU:6002 vs MCD, SBUX, YUM: Gross Margin % Comparison
For the Restaurants subindustry, Herfy Food 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.
Herfy Food Services Co Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Herfy Food Services Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Herfy Food 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.
Herfy Food Services Co (SAU:6002) has a Gross Margin % of 28.30% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Herfy Food Services Co and its competitors. This is near median its historical median of 26.40. Over the past decade, Herfy Food Services Co's Gross Margin % has ranged from 19.31 to 31.68. According to the industry distribution chart, Herfy Food Services Co ranks #284 out of 354 companies in the Restaurants industry, placing it in the top 80.2%.
Is Herfy Food Services Co's Gross Margin % too high?
Herfy Food Services Co's current Gross Margin % of 28.30% is near median its 10-year median of 26.40. Over the past 10 years, this metric has ranged from a low of 19.31 to a high of 31.68. The Restaurants industry median Gross Margin % is 45.69. Herfy Food Services Co's value of 28.30% is 38.1% below this industry median. Based on the distribution chart, Herfy Food Services Co ranks #284 out of 354 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Herfy Food Services Co has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Herfy Food Services Co's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Herfy Food Services Co ranks #284 out of 354 companies for Gross Margin %. This places Herfy Food Services Co in the lower half of its industry. The industry median Gross Margin % is 45.69. Herfy Food Services Co's value of 28.30% is 38.1% below this benchmark. Historically, Herfy Food Services Co's own Gross Margin % has ranged from 19.31 to 31.68 over the past decade. While the company's 10-year median is 26.40 vs. the industry median of 45.69, Herfy Food 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 Restaurants company?
The median Gross Margin % among Restaurants companies is 45.69, based on 354 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. Herfy Food Services Co's current Gross Margin % of 28.30% is 38.1% 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 Herfy Food Services Co and its competitors. For the Restaurants industry, the median Gross Margin % is 45.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Herfy Food Services Co's current Gross Margin % is 28.30%, which is near median its own 10-year median of 26.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Herfy Food Services Co stock overvalued right now?
Based on GuruFocus' analysis, Herfy Food Services Co (SAU:6002) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼23.95, compared to a current price of ﷼13.50 — trading 43.6% below its estimated fair value. The current Gross Margin % is 28.30%, which is near median its 10-year median of 26.40 and 38.1% below the Restaurants industry median of 45.69. Herfy Food Services Co's overall GF Score™ is 74/100 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 Herfy Food Services Co (SAU:6002), the current Gross Margin % is 28.30% 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 Herfy Food Services Co (SAU:6002) Overvalued in 2026?
Based on GuruFocus' analysis, Herfy Food Services Co stock appears to be undervalued.
The current stock price of ﷼13.50 is trading 43.6% below its estimated GF Value™ of ﷼23.95.
GuruFocus considers Herfy Food Services Co to be Possible Value Trap.
Key valuation signals for SAU:6002:
Gross Margin %: 28.30% (near median its 10-year median of 26.40)
GF Value™: ﷼23.95 vs. price of ﷼13.50 (43.6% below fair value)
Industry Position: 38.1% below the Restaurants median (#284 of 354)
No single metric tells the full story. See the SAU:6002 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Herfy Food Services Co establishes, operates, and franchises restaurants in the Kingdom of Saudi Arabia. The Company is engaged in establishing and operating restaurants, providing companies and others with cooked meals, production and sale of bakery and pastry products, the sale and purchase of lands for the purpose of constructing buildings and own use, maintaining, and leasing stores and food store fridges. The Company operates in three business segments: Restaurants and catering, Meat Factory, Bakeries, and others. Restaurants, which derive the maximum revenue, are involved in providing catering services, operating restaurants, and renting out investment properties.
74GF Score
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