National Building & Marketing Co (SAU:9510) 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
National Building & Marketing Co had a gross margin of 9.54% for the quarter that ended in Dec. 2025 => 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.
National Building & Marketing Co Gross Margin % Related Terms
National Building & Marketing 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.
National Building & Marketing Co Gross Margin % Chart
SAU:9510 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, National Building & Marketing 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.
National Building & Marketing Co Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, National Building & Marketing Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where National Building & Marketing 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.
National Building & Marketing Co (SAU:9510) has a Gross Margin % of 9.54% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on National Building & Marketing Co and its competitors. This is 29% below median its historical median of 13.40. Over the past decade, National Building & Marketing Co's Gross Margin % has ranged from 9.30 to 18.58. According to the industry distribution chart, National Building & Marketing Co ranks #342 out of 592 companies in the Steel industry, placing it in the top 57.8%.
Is National Building & Marketing Co's Gross Margin % too high?
National Building & Marketing Co's current Gross Margin % of 9.54% is 29% below median its 10-year median of 13.40. Over the past 10 years, this metric has ranged from a low of 9.30 to a high of 18.58. The Steel industry median Gross Margin % is 12.55. National Building & Marketing Co's value of 9.54% is 24% below this industry median. Based on the distribution chart, National Building & Marketing Co ranks #342 out of 592 companies in the Steel industry, which is below the industry midpoint. Overall, National Building & Marketing Co has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does National Building & Marketing Co's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, National Building & Marketing Co ranks #342 out of 592 companies for Gross Margin %. This places National Building & Marketing Co in the lower half of its industry. The industry median Gross Margin % is 12.55. National Building & Marketing Co's value of 9.54% is 24% below this benchmark. Historically, National Building & Marketing Co's own Gross Margin % has ranged from 9.30 to 18.58 over the past decade. While the company's 10-year median is 13.40 vs. the industry median of 12.55, National Building & Marketing 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 Steel company?
The median Gross Margin % among Steel companies is 12.55, based on 592 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. National Building & Marketing Co's current Gross Margin % of 9.54% is 24% 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 National Building & Marketing Co and its competitors. For the Steel industry, the median Gross Margin % is 12.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Building & Marketing Co's current Gross Margin % is 9.54%, which is 29% below median its own 10-year median of 13.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Building & Marketing Co stock overvalued right now?
Based on GuruFocus' analysis, National Building & Marketing Co (SAU:9510) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼280.72, compared to a current price of ﷼47.40 — trading 83.1% below its estimated fair value. The current Gross Margin % is 9.54%, which is 29% below median its 10-year median of 13.40 and 24% below the Steel industry median of 12.55. National Building & Marketing Co's overall GF Score™ is 59/100 with 10 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 National Building & Marketing Co (SAU:9510), the current Gross Margin % is 9.54% as of Dec. 2025. 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 National Building & Marketing Co (SAU:9510) Overvalued in 2026?
Based on GuruFocus' analysis, National Building & Marketing Co stock appears to be undervalued.
The current stock price of ﷼47.40 is trading 83.1% below its estimated GF Value™ of ﷼280.72.
GuruFocus considers National Building & Marketing Co to be Possible Value Trap.
Key valuation signals for SAU:9510:
Gross Margin %: 9.54% (29% below median its 10-year median of 13.40)
GF Value™: ﷼280.72 vs. price of ﷼47.40 (83.1% below fair value)
Industry Position: 24% below the Steel median (#342 of 592)
No single metric tells the full story. See the SAU:9510 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
National Building & Marketing Co Business Description
National Building & Marketing Co is a Saudi-based company. It is involved in trading construction materials, general construction, real estate trading, real estate development, manufacturing of primary iron and steel products as well as manufacture of pipes, tubes and hollow shapes of iron and steel, extending communication cables, network extensions, installing and extending computer and communication networks, providing wholesale infrastructure services, analyzing systems, designing and programming special software, and providing communications and information network management services. The company's operating segments include Manufacturing of steel products, which generates maximum revenue, Contracting and development projects, Commercial, Information Technology, and Others.
59GF Score
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