Food Gate Trading Co (SAU:9562) Gross Margin %: 21.32% (As of Dec. 2025) — 28% Below Median


SAU:9562 Food Gate Trading Co SAU:9562
57 GF Score
Price ﷼25.98
GF Value ﷼36.37
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Food Gate Trading Co Gross Margin %?

Food Gate Trading Co SAU:9562 57 Gross Margin % is 21.32% as of Dec. 2025, which is 28% below its 10-year median of 29.52. GuruFocus rates SAU:9562 with a GF Score™ of 57/100 and a GF Value™ of ﷼36.37 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 353 Restaurants companies, Food Gate Trading Co ranks worse than 77.62% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Food Gate Trading Co's Gross Profit for the six months ended in Dec. 2025 was ﷼6.16 Mil. Food Gate Trading Co's Revenue for the six months ended in Dec. 2025 was ﷼28.92 Mil. Therefore, Food Gate Trading Co's Gross Margin % for the quarter that ended in Dec. 2025 was 21.32%.


The historical rank and industry rank for Food Gate Trading Co's Gross Margin % or its related term are showing as below:

SAU:9562' s Gross Margin % Range Over the Past 10 Years
Min: 26.69   Med: 29.52   Max: 34.57
Current: 26.69


During the past 5 years, the highest Gross Margin % of Food Gate Trading Co was 34.57%. The lowest was 26.69%. And the median was 29.52%.

SAU:9562's Gross Margin % is ranked worse than
77.62% of 353 companies
in the Restaurants industry
Industry Median: 45.66 vs SAU:9562: 26.69

Food Gate Trading Co had a gross margin of 21.32% for the quarter that ended in Dec. 2025 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Food Gate Trading Co was 0.00% per year.


Food Gate Trading Co  (SAU:9562) 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

Food Gate Trading Co had a gross margin of 21.32% for the quarter that ended in Dec. 2025 => 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.


Food Gate Trading Co Gross Margin % Related Terms


Food Gate Trading Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Food Gate Trading 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.

Food Gate Trading Co Gross Margin % Chart

Food Gate Trading Co Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
0.00 29.41 34.57 29.63 26.69

Food Gate Trading Co Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Gross Margin % Get a 7-Day Free Trial Premium Member Only 37.18 31.87 27.45 31.99 21.32

SAU:9562 vs MCD, SBUX, YUM: Gross Margin % Comparison

For the Restaurants subindustry, Food Gate Trading 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.


Food Gate Trading Co Gross Margin % vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Food Gate Trading Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Food Gate Trading Co's Gross Margin % falls into.


SAU:9562
57GF Score
Food Gate Trading Co SAU:9562
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Food Gate Trading Co Gross Margin % Calculation

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

Food Gate Trading 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 )
=15.6 / 58.287
=(Revenue - Cost of Goods Sold) / Revenue
=(58.287 - 42.728) / 58.287
=26.69 %

Food Gate Trading Co's Gross Margin for the quarter that ended in Dec. 2025 is calculated as


Gross Margin % (Q: Dec. 2025 )=Gross Profit (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=6.2 / 28.917
=(Revenue - Cost of Goods Sold) / Revenue
=(28.917 - 22.753) / 28.917
=21.32 %

* 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 21.32% mean?
Food Gate Trading Co (SAU:9562) has a Gross Margin % of 21.32% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Food Gate Trading Co and its competitors. This is 28% below median its historical median of 29.52. Over the past decade, Food Gate Trading Co's Gross Margin % has ranged from 26.69 to 34.57. According to the industry distribution chart, Food Gate Trading Co ranks #274 out of 353 companies in the Restaurants industry, placing it in the top 77.6%.
Is Food Gate Trading Co's Gross Margin % too high?
Food Gate Trading Co's current Gross Margin % of 21.32% is 28% below median its 10-year median of 29.52. Over the past 10 years, this metric has ranged from a low of 26.69 to a high of 34.57. The Restaurants industry median Gross Margin % is 45.66. Food Gate Trading Co's value of 21.32% is 53.3% below this industry median. Based on the distribution chart, Food Gate Trading Co ranks #274 out of 353 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Food Gate Trading Co has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Food Gate Trading Co's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Food Gate Trading Co ranks #274 out of 353 companies for Gross Margin %. This places Food Gate Trading Co in the lower half of its industry. The industry median Gross Margin % is 45.66. Food Gate Trading Co's value of 21.32% is 53.3% below this benchmark. Historically, Food Gate Trading Co's own Gross Margin % has ranged from 26.69 to 34.57 over the past decade. While the company's 10-year median is 29.52 vs. the industry median of 45.66, Food Gate Trading 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 45.66, based on 353 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. Food Gate Trading Co's current Gross Margin % of 21.32% is 53.3% 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 Food Gate Trading Co and its competitors. For the Restaurants industry, the median Gross Margin % is 45.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Food Gate Trading Co's current Gross Margin % is 21.32%, which is 28% below median its own 10-year median of 29.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Food Gate Trading Co stock overvalued right now?
Based on GuruFocus' analysis, Food Gate Trading Co (SAU:9562) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼36.37, compared to a current price of ﷼25.98 — trading 28.6% below its estimated fair value. The current Gross Margin % is 21.32%, which is 28% below median its 10-year median of 29.52 and 53.3% below the Restaurants industry median of 45.66. Food Gate Trading Co's overall GF Score™ is 57/100 with 1 warning sign 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 Food Gate Trading Co (SAU:9562), the current Gross Margin % is 21.32% 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 Food Gate Trading Co (SAU:9562) Overvalued in 2026?

Based on GuruFocus' analysis, Food Gate Trading Co stock appears to be undervalued. The current stock price of ﷼25.98 is trading 28.6% below its estimated GF Value™ of ﷼36.37. GuruFocus considers Food Gate Trading Co to be Modestly Undervalued.

Key valuation signals for SAU:9562:

  • Gross Margin %: 21.32% (28% below median its 10-year median of 29.52)
  • GF Value™: ﷼36.37 vs. price of ﷼25.98 (28.6% below fair value)
  • GF Score™: 57/100 with 1 warning sign
  • Industry Position: 53.3% below the Restaurants median (#274 of 353)

No single metric tells the full story. See the SAU:9562 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Food Gate Trading Co Business Description

Address Wadi Al-Shati Street, Wadi Al-Shati Street PO Box. 12018, Al-Ghadeer District, Riyadh, SAU, 13311
Food Gate Trading Co is a Saudi owned Food and beverage company.
57GF Score

Get the complete analysis for SAU:9562

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

﷼25.98
Price
﷼36.37
GF Value