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Al-Arabiya Real Estate Co KSCKUW:ARABREC -1.10%4 Operating Margin % is 26.36% as of Mar. 2026, which is 65% above its 10-year median of 16.00. GuruFocus rates KUW:ARABREC with a GF Score™ of 4/100 and a GF Value™ of KWD0.06 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,747 Real Estate companies, Al-Arabiya Real Estate Co KSC ranks better than 67.95% on this metric.
The historical rank and industry rank for Al-Arabiya Real Estate Co KSC's Operating Margin % or its related term are showing as below:
KUW:ARABREC'
s Operating Margin % Range Over the Past 10 Years
Min: -4.07 Med: 16 Max: 36.82
Current: 25.19
KUW:ARABREC's Operating Margin % is ranked better than 67.95% of 1747
companies
in the Real Estate industry
Industry Median: 13.37
vs KUW:ARABREC: 25.19
Al-Arabiya Real Estate Co KSC (KUW:ARABREC) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Al-Arabiya Real Estate Co KSC Operating Margin % Related Terms
Al-Arabiya Real Estate Co KSC Operating Margin % Historical Data
* 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-Arabiya Real Estate Co KSC Operating Margin % Chart
KUW:ARABREC vs CBRE, BEKE, JLL: Operating Margin % Comparison
For the Real Estate Services subindustry, Al-Arabiya Real Estate Co KSC's Operating Margin %, along with its competitors' market caps and Operating 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-Arabiya Real Estate Co KSC Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Al-Arabiya Real Estate Co KSC's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Al-Arabiya Real Estate Co KSC's Operating Margin % falls into.
Al-Arabiya Real Estate Co KSC Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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-Arabiya Real Estate Co KSC (KUW:ARABREC) has a Operating Margin % of 26.36% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Al-Arabiya Real Estate Co KSC and its competitors. This is 65% above median its historical median of 16.00. According to the industry distribution chart, Al-Arabiya Real Estate Co KSC ranks #560 out of 1747 companies in the Real Estate industry, placing it in the top 32.1%.
Is Al-Arabiya Real Estate Co KSC's Operating Margin % too high?
Al-Arabiya Real Estate Co KSC's current Operating Margin % of 26.36% is 65% above median its 10-year median of 16.00. The Real Estate industry median Operating Margin % is 13.37. Al-Arabiya Real Estate Co KSC's value of 26.36% is 97.2% above this industry median. Based on the distribution chart, Al-Arabiya Real Estate Co KSC ranks #560 out of 1747 companies in the Real Estate industry, which is above the industry midpoint. Overall, Al-Arabiya Real Estate Co KSC has a GF Score™ of 4/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Al-Arabiya Real Estate Co KSC's Operating Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Al-Arabiya Real Estate Co KSC ranks #560 out of 1747 companies for Operating Margin %. This puts Al-Arabiya Real Estate Co KSC in the upper half of its industry. The industry median Operating Margin % is 13.37. Al-Arabiya Real Estate Co KSC's value of 26.36% is 97.2% above this benchmark. While the company's 10-year median is 16.00 vs. the industry median of 13.37, Al-Arabiya Real Estate Co KSC 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 Operating Margin % for a Real Estate company?
The median Operating Margin % among Real Estate companies is 13.37, based on 1,747 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Al-Arabiya Real Estate Co KSC's current Operating Margin % of 26.36% is 97.2% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Al-Arabiya Real Estate Co KSC and its competitors. For the Real Estate industry, the median Operating Margin % is 13.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al-Arabiya Real Estate Co KSC's current Operating Margin % is 26.36%, which is 65% above median its own 10-year median of 16.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al-Arabiya Real Estate Co KSC stock overvalued right now?
Based on GuruFocus' analysis, Al-Arabiya Real Estate Co KSC (KUW:ARABREC) is currently considered Significantly Overvalued. The stock's GF Value™ is KWD0.06, compared to a current price of KWD0.18 — trading 198.3% above its estimated fair value. The current Operating Margin % is 26.36%, which is 65% above median its 10-year median of 16.00 and 97.2% above the Real Estate industry median of 13.37. Al-Arabiya Real Estate Co KSC's overall GF Score™ is 4/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Al-Arabiya Real Estate Co KSC (KUW:ARABREC), the current Operating Margin % is 26.36% 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-Arabiya Real Estate Co KSC (KUW:ARABREC) Overvalued in 2026?
Based on GuruFocus' analysis, Al-Arabiya Real Estate Co KSC stock appears to be overvalued.
The current stock price of KWD0.18 is trading 198.3% above its estimated GF Value™ of KWD0.06.
GuruFocus considers Al-Arabiya Real Estate Co KSC to be Significantly Overvalued.
Key valuation signals for KUW:ARABREC:
Operating Margin %: 26.36% (65% above median its 10-year median of 16.00)
GF Value™: KWD0.06 vs. price of KWD0.18 (198.3% above fair value)
Industry Position: 97.2% above the Real Estate median (#560 of 1747)
No single metric tells the full story. See the KUW:ARABREC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al-Arabiya Real Estate Co KSC Business Description
Al-Arabiya Real Estate Co KSC is a Kuwait based company involved in the construction, contracting, developing and managing the activities of residential buildings, hotels, and commercial centres within the private and public sector. It operates in three segments. Real estate segment involves activities related to real estate investment properties. Hotels segment, which is the key revenue generator, involves establishment, acquiring and managing hotels. Investment segment involves investing in shares and share capital of the companies. Geographically, it generates revenue from Kuwait being the highest revenue driver, United Arab Emirates, and Egypt.
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