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SAU:7202's Gross Margin % is ranked worse than 87.61% of 339
companies
in the Telecommunication Services industry
Industry Median: 51.78
vs SAU:7202: 20.51
Arabian Internet and Communications Services Co had a gross margin of 19.51% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Arabian Internet and Communications Services Co (SAU:7202) 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
Arabian Internet and Communications Services Co had a gross margin of 19.51% 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.
Arabian Internet and Communications Services Co Gross Margin % Related Terms
Arabian Internet and Communications Services 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.
Arabian Internet and Communications Services Co Gross Margin % Chart
Arabian Internet and Communications Services Co Annual Data
SAU:7202 vs TMUS, VZ, T: Gross Margin % Comparison
For the Telecom Services subindustry, Arabian Internet and Communications 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.
Arabian Internet and Communications Services Co Gross Margin % vs Telecommunication Services 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.
Arabian Internet and Communications Services Co (SAU:7202) has a Gross Margin % of 19.51% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Arabian Internet and Communications Services Co and its competitors. This is 15% below median its historical median of 22.96. Over the past decade, Arabian Internet and Communications Services Co's Gross Margin % has ranged from 20.51 to 23.69. According to the industry distribution chart, Arabian Internet and Communications Services Co ranks #297 out of 339 companies in the Telecommunication Services industry, placing it in the top 87.6%.
Is Arabian Internet and Communications Services Co's Gross Margin % too high?
Arabian Internet and Communications Services Co's current Gross Margin % of 19.51% is 15% below median its 10-year median of 22.96. Over the past 10 years, this metric has ranged from a low of 20.51 to a high of 23.69. The Telecommunication Services industry median Gross Margin % is 51.78. Arabian Internet and Communications Services Co's value of 19.51% is 62.3% below this industry median. Based on the distribution chart, Arabian Internet and Communications Services Co ranks #297 out of 339 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Arabian Internet and Communications Services Co has a GF Score™ of 94/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arabian Internet and Communications Services Co's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Arabian Internet and Communications Services Co ranks #297 out of 339 companies for Gross Margin %. This places Arabian Internet and Communications Services Co in the lower half of its industry. The industry median Gross Margin % is 51.78. Arabian Internet and Communications Services Co's value of 19.51% is 62.3% below this benchmark. Historically, Arabian Internet and Communications Services Co's own Gross Margin % has ranged from 20.51 to 23.69 over the past decade. While the company's 10-year median is 22.96 vs. the industry median of 51.78, Arabian Internet and Communications 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.78, based on 339 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. Arabian Internet and Communications Services Co's current Gross Margin % of 19.51% is 62.3% 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 Arabian Internet and Communications Services Co and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Internet and Communications Services Co's current Gross Margin % is 19.51%, which is 15% below median its own 10-year median of 22.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Internet and Communications Services Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Internet and Communications Services Co (SAU:7202) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼331.99, compared to a current price of ﷼203.10 — trading 38.8% below its estimated fair value. The current Gross Margin % is 19.51%, which is 15% below median its 10-year median of 22.96 and 62.3% below the Telecommunication Services industry median of 51.78. Arabian Internet and Communications Services Co's overall GF Score™ is 94/100 with 2 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 Arabian Internet and Communications Services Co (SAU:7202), the current Gross Margin % is 19.51% 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 Arabian Internet and Communications Services Co (SAU:7202) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Internet and Communications Services Co stock appears to be undervalued.
The current stock price of ﷼203.10 is trading 38.8% below its estimated GF Value™ of ﷼331.99.
GuruFocus considers Arabian Internet and Communications Services Co to be Significantly Undervalued.
Key valuation signals for SAU:7202:
Gross Margin %: 19.51% (15% below median its 10-year median of 22.96)
GF Value™: ﷼331.99 vs. price of ﷼203.10 (38.8% below fair value)
Industry Position: 62.3% below the Telecommunication Services median (#297 of 339)
No single metric tells the full story. See the SAU:7202 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Internet and Communications Services Co Business Description
Arabian Internet and Communications Services Co is an information and communication company. The company operates in three segments namely, Solutions by STC, GIZA Group, and Contact Center Company. The company's revenue mainly comprises of Solutions by STC segment. The services provided by the company are Core ICT Services, IT Managed and Operational Services, and Digital Services.
94GF Score
Get the complete analysis for SAU:7202
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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