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Middle East Paper CoSAU:1202 +0.06%80 Operating Margin % is 3.60% as of Mar. 2026, which is 39% below its 10-year median of 5.89. GuruFocus rates SAU:1202 with a GF Score™ of 80/100 and a GF Value™ of ﷼28.84 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 282 Forest Products companies, Middle East Paper Co ranks better than 57.45% on this metric.
Middle East Paper Co had lost money in 50% of the time over the past 12quarters.
Middle East Paper Co (SAU:1202) 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.
Middle East Paper Co Operating Margin % Related Terms
Middle East Paper Co Operating Margin % Historical Data
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The historical data trend for Middle East Paper Co's Operating 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 Paper & Paper Products subindustry, Middle East Paper Co'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.
Middle East Paper Co Operating Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Middle East Paper Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Middle East Paper Co's Operating Margin % falls into.
Middle East Paper Co 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.
Middle East Paper Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Middle East Paper Co (SAU:1202) has a Operating Margin % of 3.60% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Middle East Paper Co and its competitors. This is 39% below median its historical median of 5.89. According to the industry distribution chart, Middle East Paper Co ranks #120 out of 282 companies in the Forest Products industry, placing it in the top 42.6%.
Is Middle East Paper Co's Operating Margin % too high?
Middle East Paper Co's current Operating Margin % of 3.60% is 39% below median its 10-year median of 5.89. The Forest Products industry median Operating Margin % is 2.54. Middle East Paper Co's value of 3.60% is 41.7% above this industry median. Based on the distribution chart, Middle East Paper Co ranks #120 out of 282 companies in the Forest Products industry, which is above the industry midpoint. Overall, Middle East Paper Co has a GF Score™ of 80/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Middle East Paper Co's Operating Margin % compare to SLVM?
According to the Forest Products industry distribution chart, Middle East Paper Co ranks #120 out of 282 companies for Operating Margin %. This puts Middle East Paper Co in the upper half of its industry. The industry median Operating Margin % is 2.54. Middle East Paper Co's value of 3.60% is 41.7% above this benchmark. While the company's 10-year median is 5.89 vs. the industry median of 2.54, Middle East Paper 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 Operating Margin % for a Forest Products company?
The median Operating Margin % among Forest Products companies is 2.54, based on 282 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. Middle East Paper Co's current Operating Margin % of 3.60% is 41.7% 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 Middle East Paper Co and its competitors. For the Forest Products industry, the median Operating Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Middle East Paper Co's current Operating Margin % is 3.60%, which is 39% below median its own 10-year median of 5.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Middle East Paper Co stock overvalued right now?
Based on GuruFocus' analysis, Middle East Paper Co (SAU:1202) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼28.84, compared to a current price of ﷼16.81 — trading 41.7% below its estimated fair value. The current Operating Margin % is 3.60%, which is 39% below median its 10-year median of 5.89 and 41.7% above the Forest Products industry median of 2.54. Middle East Paper Co's overall GF Score™ is 80/100 with 7 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 Middle East Paper Co (SAU:1202), the current Operating Margin % is 3.60% 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 Middle East Paper Co (SAU:1202) Overvalued in 2026?
Based on GuruFocus' analysis, Middle East Paper Co stock appears to be undervalued.
The current stock price of ﷼16.81 is trading 41.7% below its estimated GF Value™ of ﷼28.84.
GuruFocus considers Middle East Paper Co to be Possible Value Trap.
Key valuation signals for SAU:1202:
Operating Margin %: 3.60% (39% below median its 10-year median of 5.89)
GF Value™: ﷼28.84 vs. price of ﷼16.81 (41.7% below fair value)
Industry Position: 41.7% above the Forest Products median (#120 of 282)
No single metric tells the full story. See the SAU:1202 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Middle East Paper Co is engaged in the production and sale of container board, industrial paper, and tissue paper. Along with its subsidiaries, the company has two operating and reportable segments, that is, Manufacturing and Trading. The Manufacturing segment represents the manufacturing of container board and industrial paper, as well as tissue paper, and the Trading segment represents wholesale and retail sales of paper, carton, and plastic waste. A majority of its revenue is generated from the Manufacturing segment. Geographically, the group generates maximum revenue from Saudi Arabia, followed by Asia, Other GCC countries, Africa, Europe, and the Americas.
80GF Score
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