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Riyadh Steel CoSAU:9588 22 Gross Margin % is 5.45% as of Dec. 2025, which is 12% below its 10-year median of 6.20. GuruFocus rates SAU:9588 with a GF Score™ of 22/100. The stock has 3 warning signs investors should review. Among 594 Steel companies, Riyadh Steel Co ranks worse than 96.97% on this metric.
The historical rank and industry rank for Riyadh Steel Co's Gross Margin % or its related term are showing as below:
SAU:9588'
s Gross Margin % Range Over the Past 10 Years
Min: -3.99 Med: 6.2 Max: 15.3
Current: -3.99
During the past 5 years, the highestGross Margin % of Riyadh Steel Co was 15.30%. The lowest was -3.99%. And the median was 6.20%.
SAU:9588's Gross Margin % is ranked worse than 96.97% of 594
companies
in the Steel industry
Industry Median: 12.55
vs SAU:9588: -3.99
Riyadh Steel Co had a gross margin of 5.45% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Riyadh Steel Co was 0.00% per year.
Riyadh Steel Co (SAU:9588) 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
Riyadh Steel Co had a gross margin of 5.45% 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.
Riyadh Steel Co Gross Margin % Related Terms
Riyadh Steel Co Gross Margin % Historical Data
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The historical data trend for Riyadh Steel 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:9588 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Riyadh Steel 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.
Riyadh Steel Co Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Riyadh Steel Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Riyadh Steel 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.
Riyadh Steel Co (SAU:9588) has a Gross Margin % of 5.45% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Riyadh Steel Co and its competitors. This is 12% below median its historical median of 6.20. According to the industry distribution chart, Riyadh Steel Co ranks #576 out of 594 companies in the Steel industry, placing it in the top 97%.
Is Riyadh Steel Co's Gross Margin % too high?
Riyadh Steel Co's current Gross Margin % of 5.45% is 12% below median its 10-year median of 6.20. The Steel industry median Gross Margin % is 12.55. Riyadh Steel Co's value of 5.45% is 56.6% below this industry median. Based on the distribution chart, Riyadh Steel Co ranks #576 out of 594 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Riyadh Steel Co has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Riyadh Steel Co's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Riyadh Steel Co ranks #576 out of 594 companies for Gross Margin %. This places Riyadh Steel Co in the lower half of its industry. The industry median Gross Margin % is 12.55. Riyadh Steel Co's value of 5.45% is 56.6% below this benchmark. While the company's 10-year median is 6.20 vs. the industry median of 12.55, Riyadh Steel 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 594 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. Riyadh Steel Co's current Gross Margin % of 5.45% is 56.6% 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 Riyadh Steel 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. Riyadh Steel Co's current Gross Margin % is 5.45%, which is 12% below median its own 10-year median of 6.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Riyadh Steel Co stock overvalued right now?
Riyadh Steel Co (SAU:9588) has a current Gross Margin % of 5.45%. The current Gross Margin % is 5.45%, which is 12% below median its 10-year median of 6.20 and 56.6% below the Steel industry median of 12.55. Riyadh Steel Co's overall GF Score™ is 22/100 with 3 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 Riyadh Steel Co (SAU:9588), the current Gross Margin % is 5.45% 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.
Riyadh Steel Co Group is a steel manufacturer principally engaged in the production of sheets, plates, strip coils, rods, skewers, corners, wires, and sections. The Company provides steel scrap, billets, and ASTM A36 standard flat and angle bars, and generates revenue from the sale of angled and flat bars and other finished goods, billets, and scrap iron and raw materials. It mainly operates in the Kingdom of Saudi Arabia, which generates the majority of its revenue, and also has a presence in other GCC countries.
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