ELM Co (SAU:7203) Net Margin %: 26.56% (As of Mar. 2026) — 40% Above Median


SAU:7203 ELM Co SAU:7203
95 GF Score
Price ﷼686.50
GF Value ﷼1,441.57
Valuation Significantly Undervalued
! 2 Warning Signs
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What is ELM Co Net Margin %?

ELM Co SAU:7203 -0.79% 95 Net Margin % is 26.56% as of Mar. 2026, which is 40% above its 10-year median of 18.92. GuruFocus rates SAU:7203 with a GF Score™ of 95/100 and a GF Value™ of ﷼1,441.57 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,823 Software companies, ELM Co ranks better than 92.03% on this metric.

Net margin is calculated as Net Income divided by its Revenue. ELM Co's Net Income for the three months ended in Mar. 2026 was ﷼656 Mil. ELM Co's Revenue for the three months ended in Mar. 2026 was ﷼2,472 Mil. Therefore, ELM Co's net margin for the quarter that ended in Mar. 2026 was 26.56%.

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

SAU:7203' s Net Margin % Range Over the Past 10 Years
Min: 12.43   Med: 18.92   Max: 24.66
Current: 22.38


SAU:7203's Net Margin % is ranked better than
92.03% of 2823 companies
in the Software industry
Industry Median: 2.53 vs SAU:7203: 22.38

ELM Co  (SAU:7203) 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.


ELM Co Net Margin % Related Terms


ELM Co Net Margin % Historical Data

* Premium members only.

The historical data trend for ELM 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.

ELM Co Net Margin % Chart

ELM Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Net Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.81 20.19 22.99 24.66 22.09

ELM Co Quarterly Data
Jun21 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 Premium Member Only 26.40 26.27 22.04 15.89 26.56

SAU:7203 vs IBM, ACN, FISV: Net Margin % Comparison

For the Information Technology Services subindustry, ELM 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.


ELM Co Net Margin % vs Software Industry

For the Software industry and Technology sector, ELM Co's Net Margin % distribution charts can be found below:

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


SAU:7203
95GF Score
ELM Co SAU:7203
Net Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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ELM 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.

ELM 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 )
=2090.353/9464.885
=22.09 %

ELM 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 )
=656.499/2471.802
=26.56 %

* 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 26.56% mean?
ELM Co (SAU:7203) has a Net Margin % of 26.56% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on ELM Co and its competitors. This is 40% above median its historical median of 18.92. Over the past decade, ELM Co's Net Margin % has ranged from 12.43 to 24.66. According to the industry distribution chart, ELM Co ranks #225 out of 2823 companies in the Software industry, placing it in the top 8%.
Is ELM Co's Net Margin % too high?
ELM Co's current Net Margin % of 26.56% is 40% above median its 10-year median of 18.92. Over the past 10 years, this metric has ranged from a low of 12.43 to a high of 24.66. The Software industry median Net Margin % is 2.53. ELM Co's value of 26.56% is 949.8% above this industry median. Based on the distribution chart, ELM Co ranks #225 out of 2823 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, ELM Co has a GF Score™ of 95/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ELM Co's Net Margin % compare to IBM and ACN?
According to the Software industry distribution chart, ELM Co ranks #225 out of 2823 companies for Net Margin %. This places ELM Co in the top 8% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.53. ELM Co's value of 26.56% is 949.8% above this benchmark. Historically, ELM Co's own Net Margin % has ranged from 12.43 to 24.66 over the past decade. While the company's 10-year median is 18.92 vs. the industry median of 2.53, ELM Co 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 Software company?
The median Net Margin % among Software companies is 2.53, based on 2,823 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. ELM Co's current Net Margin % of 26.56% is 949.8% 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 ELM Co and its competitors. For the Software industry, the median Net Margin % is 2.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ELM Co's current Net Margin % is 26.56%, which is 40% above median its own 10-year median of 18.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ELM Co stock overvalued right now?
Based on GuruFocus' analysis, ELM Co (SAU:7203) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼1,441.57, compared to a current price of ﷼686.50 — trading 52.4% below its estimated fair value. The current Net Margin % is 26.56%, which is 40% above median its 10-year median of 18.92 and 949.8% above the Software industry median of 2.53. ELM Co's overall GF Score™ is 95/100 with 2 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 ELM Co (SAU:7203), the current Net Margin % is 26.56% 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 ELM Co (SAU:7203) Overvalued in 2026?

Based on GuruFocus' analysis, ELM Co stock appears to be undervalued. The current stock price of ﷼686.50 is trading 52.4% below its estimated GF Value™ of ﷼1,441.57. GuruFocus considers ELM Co to be Significantly Undervalued.

Key valuation signals for SAU:7203:

  • Net Margin %: 26.56% (40% above median its 10-year median of 18.92)
  • GF Value™: ﷼1,441.57 vs. price of ﷼686.50 (52.4% below fair value)
  • GF Score™: 95/100 with 2 warning signs
  • Industry Position: 949.8% above the Software median (#225 of 2823)

No single metric tells the full story. See the SAU:7203 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


ELM Co Business Description

Address Al Thaghr, Digital City 6614, Unit No. 2, Al Nakheel District, Riyadh, SAU, 12382-4182
ELM Co mainly offers ready-made and customized digital solutions across different areas. Its ready-made solutions serve a broad segment of customers, who can subscribe to different packages of their choosing to meet their needs and satisfy business requirements. The services offered by the group include consulting, digital products, technical solutions, and business outsourcing, among others. The group's reportable segments are: Digital business, Business process outsourcing, and Professional services. Maximum revenue is generated from the Digital business, which includes ready-to-use solutions in the form of technical services, portals, electronic applications, and related support work, developed by the group to solve an existing problem or fill an existing service gap for its clients.
95GF Score

Get the complete analysis for SAU:7203

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

﷼686.50
Price
﷼1,441.57
GF Value