Al Rajhi BankSAU:1120 +0.15%76 Net Margin % is 64.13% as of Mar. 2026, which is 12% above its 10-year median of 57.50. GuruFocus rates SAU:1120 with a GF Score™ of 76/100 and a GF Value™ of ﷼79.38 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,528 Banks companies, Al Rajhi Bank ranks better than 98.17% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Al Rajhi Bank's Net Income for the
three
months ended in Mar. 2026 was ﷼6,752 Mil. Al Rajhi Bank's Revenue for the
three
months ended in Mar. 2026 was ﷼10,528 Mil. Therefore, Al Rajhi Bank's net margin for the quarter that ended in Mar. 2026 was 64.13%.
The historical rank and industry rank for Al Rajhi Bank's Net Margin % or its related term are showing as below:
SAU:1120'
s Net Margin % Range Over the Past 10 Years
Min: 21.82 Med: 57.5 Max: 63.64
Current: 63.64
SAU:1120's Net Margin % is ranked better than 98.17% of 1528
companies
in the Banks industry
Industry Median: 26.845
vs SAU:1120: 63.64
Al Rajhi Bank (SAU:1120) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Al Rajhi Bank Net Margin % Related Terms
Al Rajhi Bank Net Margin % Historical Data
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The historical data trend for Al Rajhi Bank's Net 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.
For the Banks - Regional subindustry, Al Rajhi Bank's Net Margin %, along with its competitors' market caps and Net 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.
Al Rajhi Bank Net Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Al Rajhi Bank's Net Margin % distribution charts can be found below:
* The bar in red indicates where Al Rajhi Bank's Net 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.
Al Rajhi Bank (SAU:1120) has a Net Margin % of 64.13% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Al Rajhi Bank and its competitors. This is 12% above median its historical median of 57.50. Over the past decade, Al Rajhi Bank's Net Margin % has ranged from 21.82 to 63.64. According to the industry distribution chart, Al Rajhi Bank ranks #28 out of 1528 companies in the Banks industry, placing it in the top 1.8%.
Is Al Rajhi Bank's Net Margin % too high?
Al Rajhi Bank's current Net Margin % of 64.13% is 12% above median its 10-year median of 57.50. Over the past 10 years, this metric has ranged from a low of 21.82 to a high of 63.64. The Banks industry median Net Margin % is 26.85. Al Rajhi Bank's value of 64.13% is 138.9% above this industry median. Based on the distribution chart, Al Rajhi Bank ranks #28 out of 1528 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Al Rajhi Bank has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Al Rajhi Bank's Net Margin % compare to PNC?
According to the Banks industry distribution chart, Al Rajhi Bank ranks #28 out of 1528 companies for Net Margin %. This places Al Rajhi Bank in the top 2% of its industry — outperforming the majority of peers. The industry median Net Margin % is 26.85. Al Rajhi Bank's value of 64.13% is 138.9% above this benchmark. Historically, Al Rajhi Bank's own Net Margin % has ranged from 21.82 to 63.64 over the past decade. While the company's 10-year median is 57.50 vs. the industry median of 26.85, Al Rajhi Bank has consistently been above 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 Net Margin % for a Banks company?
The median Net Margin % among Banks companies is 26.85, based on 1,528 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Al Rajhi Bank's current Net Margin % of 64.13% is 138.9% above 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Al Rajhi Bank and its competitors. For the Banks industry, the median Net Margin % is 26.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al Rajhi Bank's current Net Margin % is 64.13%, which is 12% above median its own 10-year median of 57.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Rajhi Bank stock overvalued right now?
Based on GuruFocus' analysis, Al Rajhi Bank (SAU:1120) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼79.38, compared to a current price of ﷼66.00 — trading 16.9% below its estimated fair value. The current Net Margin % is 64.13%, which is 12% above median its 10-year median of 57.50 and 138.9% above the Banks industry median of 26.85. Al Rajhi Bank's overall GF Score™ is 76/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Al Rajhi Bank (SAU:1120), the current Net Margin % is 64.13% 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 Al Rajhi Bank (SAU:1120) Overvalued in 2026?
Based on GuruFocus' analysis, Al Rajhi Bank stock appears to be undervalued.
The current stock price of ﷼66.00 is trading 16.9% below its estimated GF Value™ of ﷼79.38.
GuruFocus considers Al Rajhi Bank to be Modestly Undervalued.
Key valuation signals for SAU:1120:
Net Margin %: 64.13% (12% above median its 10-year median of 57.50)
GF Value™: ﷼79.38 vs. price of ﷼66.00 (16.9% below fair value)
Industry Position: 138.9% above the Banks median (#28 of 1528)
No single metric tells the full story. See the SAU:1120 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al Rajhi Bank is an Islamic bank with a network of over 500 branches. Its segments include the Retail segment which includes accepting individual customer deposits, providing credit facilities, customer debit current accounts, fees from banking services, and remittance business; the Corporate segment which incorporates deposits of VIP, corporate customer deposits, credit facilities, and debit current accounts, Treasury segment through which it offers treasury services, Murabaha with SAMA and international Mutajara portfolio; and Investment services and brokerage and other that incorporates investments of individuals and corporate in mutual funds, local and international share trading services and investment portfolios.
76GF Score
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