Arabian Drilling Co (SAU:2381) Net Margin %: 0.86% (As of Mar. 2026) — 93% Below Median

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SAU:2381 Arabian Drilling Co SAU:2381
59 GF Score
Price ﷼81.50
GF Value ﷼100.70
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Arabian Drilling Co Net Margin %?

Arabian Drilling Co SAU:2381 -5.73% 59 Net Margin % is 0.86% as of Mar. 2026, which is 93% below its 10-year median of 12.44. GuruFocus rates SAU:2381 with a GF Score™ of 59/100 and a GF Value™ of ﷼100.70 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 918 Oil & Gas companies, Arabian Drilling Co ranks worse than 73.53% on this metric.

Net margin is calculated as Net Income divided by its Revenue. Arabian Drilling Co's Net Income for the three months ended in Mar. 2026 was ﷼7 Mil. Arabian Drilling Co's Revenue for the three months ended in Mar. 2026 was ﷼822 Mil. Therefore, Arabian Drilling Co's net margin for the quarter that ended in Mar. 2026 was 0.86%.

The historical rank and industry rank for Arabian Drilling Co's Net Margin % or its related term are showing as below:

SAU:2381' s Net Margin % Range Over the Past 10 Years
Min: -4.29   Med: 12.44   Max: 20.63
Current: -4.29


SAU:2381's Net Margin % is ranked worse than
73.53% of 918 companies
in the Oil & Gas industry
Industry Median: 3.455 vs SAU:2381: -4.29

Arabian Drilling Co  (SAU:2381) 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.


Arabian Drilling Co Net Margin % Related Terms


Arabian Drilling Co Net Margin % Historical Data

* Premium members only.

The historical data trend for Arabian Drilling Co'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.

Arabian Drilling Co Net Margin % Chart

Arabian Drilling Co Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
Net Margin %
12.44 20.63 17.39 8.88 -2.19

Arabian Drilling Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Net Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.25 0.87 -1.13 -18.02 0.86

SAU:2381 vs NE, RIG, VAL: Net Margin % Comparison

For the Oil & Gas Drilling subindustry, Arabian Drilling Co'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.


Arabian Drilling Co Net Margin % vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Arabian Drilling Co's Net Margin % distribution charts can be found below:

* The bar in red indicates where Arabian Drilling Co's Net Margin % falls into.


SAU:2381
59GF Score
Arabian Drilling Co SAU:2381
Net Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arabian Drilling Co Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Arabian Drilling Co's Net Margin for the fiscal year that ended in Dec. 2025 is calculated as

Net Margin=Net Income (A: Dec. 2025 )/Revenue (A: Dec. 2025 )
=-75.25/3433.327
=-2.19 %

Arabian Drilling Co's Net Margin for the quarter that ended in Mar. 2026 is calculated as

Net Margin=Net Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=7.054/821.61
=0.86 %

* 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.

Frequently Asked Questions Learn more about Net Margin % →
What does a Net Margin % of 0.86% mean?
Arabian Drilling Co (SAU:2381) has a Net Margin % of 0.86% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Arabian Drilling Co and its competitors. This is 93% below median its historical median of 12.44. According to the industry distribution chart, Arabian Drilling Co ranks #675 out of 918 companies in the Oil & Gas industry, placing it in the top 73.5%.
Is Arabian Drilling Co's Net Margin % too high?
Arabian Drilling Co's current Net Margin % of 0.86% is 93% below median its 10-year median of 12.44. The Oil & Gas industry median Net Margin % is 3.46. Arabian Drilling Co's value of 0.86% is 75.1% below this industry median. Based on the distribution chart, Arabian Drilling Co ranks #675 out of 918 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Arabian Drilling Co has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arabian Drilling Co's Net Margin % compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Arabian Drilling Co ranks #675 out of 918 companies for Net Margin %. This places Arabian Drilling Co in the lower half of its industry. The industry median Net Margin % is 3.46. Arabian Drilling Co's value of 0.86% is 75.1% below this benchmark. While the company's 10-year median is 12.44 vs. the industry median of 3.46, Arabian Drilling 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 Net Margin % for an Oil & Gas company?
The median Net Margin % among Oil & Gas companies is 3.46, based on 918 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. Arabian Drilling Co's current Net Margin % of 0.86% is 75.1% 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 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 Arabian Drilling Co and its competitors. For the Oil & Gas industry, the median Net Margin % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Drilling Co's current Net Margin % is 0.86%, which is 93% below median its own 10-year median of 12.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Drilling Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Drilling Co (SAU:2381) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼100.70, compared to a current price of ﷼81.50 — trading 19.1% below its estimated fair value. The current Net Margin % is 0.86%, which is 93% below median its 10-year median of 12.44 and 75.1% below the Oil & Gas industry median of 3.46. Arabian Drilling Co's overall GF Score™ is 59/100 with 3 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 Arabian Drilling Co (SAU:2381), the current Net Margin % is 0.86% 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 Drilling Co (SAU:2381) Overvalued in 2026?

Based on GuruFocus' analysis, Arabian Drilling Co stock appears to be undervalued. The current stock price of ﷼81.50 is trading 19.1% below its estimated GF Value™ of ﷼100.70. GuruFocus considers Arabian Drilling Co to be Modestly Undervalued.

Key valuation signals for SAU:2381:

  • Net Margin %: 0.86% (93% below median its 10-year median of 12.44)
  • GF Value™: ﷼100.70 vs. price of ﷼81.50 (19.1% below fair value)
  • GF Score™: 59/100 with 3 warning signs
  • Industry Position: 75.1% below the Oil & Gas median (#675 of 918)

No single metric tells the full story. See the SAU:2381 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arabian Drilling Co Business Description

Industry EnergyOil & Gas
Address P.O.Box 4110, Al-Khobar, SAU, 31952
Arabian Drilling Co is an onshore and offshore gas and oil rig drilling company in Saudi Arabia. It is principally engaged in the drilling of oil and natural gas wells, operations, maintenance and hauling of rigs, and related activities. The operating segment of the company Provision of drilling and related services through land rigs and the Provision of drilling and related services through off-shore rigs.
59GF Score

Get the complete analysis for SAU:2381

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

﷼81.50
Price
﷼100.70
GF Value