Al Hassan Ghazi Ibrahim Shaker (SAU:1214) 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 Hassan Ghazi Ibrahim Shaker Operating Margin % Related Terms
Al Hassan Ghazi Ibrahim Shaker 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 Hassan Ghazi Ibrahim Shaker Operating Margin % Chart
SAU:1214 vs SNX, ARW, AVT: Operating Margin % Comparison
For the Electronics & Computer Distribution subindustry, Al Hassan Ghazi Ibrahim Shaker'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 Hassan Ghazi Ibrahim Shaker Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Al Hassan Ghazi Ibrahim Shaker's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Al Hassan Ghazi Ibrahim Shaker's Operating Margin % falls into.
Al Hassan Ghazi Ibrahim Shaker 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 Hassan Ghazi Ibrahim Shaker (SAU:1214) has a Operating Margin % of 6.43% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Al Hassan Ghazi Ibrahim Shaker and its competitors. This is 60% above median its historical median of 4.03. According to the industry distribution chart, Al Hassan Ghazi Ibrahim Shaker ranks #859 out of 2472 companies in the Hardware industry, placing it in the top 34.7%.
Is Al Hassan Ghazi Ibrahim Shaker's Operating Margin % too high?
Al Hassan Ghazi Ibrahim Shaker's current Operating Margin % of 6.43% is 60% above median its 10-year median of 4.03. The Hardware industry median Operating Margin % is 3.81. Al Hassan Ghazi Ibrahim Shaker's value of 6.43% is 68.8% above this industry median. Based on the distribution chart, Al Hassan Ghazi Ibrahim Shaker ranks #859 out of 2472 companies in the Hardware industry, which is above the industry midpoint. Overall, Al Hassan Ghazi Ibrahim Shaker has a GF Score™ of 83/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Al Hassan Ghazi Ibrahim Shaker's Operating Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, Al Hassan Ghazi Ibrahim Shaker ranks #859 out of 2472 companies for Operating Margin %. This puts Al Hassan Ghazi Ibrahim Shaker in the upper half of its industry. The industry median Operating Margin % is 3.81. Al Hassan Ghazi Ibrahim Shaker's value of 6.43% is 68.8% above this benchmark. While the company's 10-year median is 4.03 vs. the industry median of 3.81, Al Hassan Ghazi Ibrahim Shaker 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,472 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 Hassan Ghazi Ibrahim Shaker's current Operating Margin % of 6.43% is 68.8% 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 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 Hassan Ghazi Ibrahim Shaker and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al Hassan Ghazi Ibrahim Shaker's current Operating Margin % is 6.43%, which is 60% above median its own 10-year median of 4.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Hassan Ghazi Ibrahim Shaker stock overvalued right now?
Based on GuruFocus' analysis, Al Hassan Ghazi Ibrahim Shaker (SAU:1214) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼23.06, compared to a current price of ﷼13.63 — trading 40.9% below its estimated fair value. The current Operating Margin % is 6.43%, which is 60% above median its 10-year median of 4.03 and 68.8% above the Hardware industry median of 3.81. Al Hassan Ghazi Ibrahim Shaker's overall GF Score™ is 83/100 with 3 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 Hassan Ghazi Ibrahim Shaker (SAU:1214), the current Operating Margin % is 6.43% 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 Hassan Ghazi Ibrahim Shaker (SAU:1214) Overvalued in 2026?
Based on GuruFocus' analysis, Al Hassan Ghazi Ibrahim Shaker stock appears to be undervalued.
The current stock price of ﷼13.63 is trading 40.9% below its estimated GF Value™ of ﷼23.06.
GuruFocus considers Al Hassan Ghazi Ibrahim Shaker to be Possible Value Trap.
Key valuation signals for SAU:1214:
Operating Margin %: 6.43% (60% above median its 10-year median of 4.03)
GF Value™: ﷼23.06 vs. price of ﷼13.63 (40.9% below fair value)
Industry Position: 68.8% above the Hardware median (#859 of 2472)
No single metric tells the full story. See the SAU:1214 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al Hassan Ghazi Ibrahim Shaker Business Description
Al Hassan Ghazi Ibrahim Shaker is engaged in trading and wholesale parts, electronic equipment, household equipment and air-conditioners, and maintenance. It also provides agency services for companies in the same business. The group's reportable business segments are HVAC Solutions, Home Appliances, and Others. The majority of revenue is generated from the HVAC Solutions segment, which represents revenue generated from residential and commercial conditioners, including chillers and related services. The Home Appliances segment represents televisions, washing machines, dryers, refrigerators, irons, gas cookers, and floor care, and the Others segment represents consultancy services for energy solutions and the sale of mobile phones.
83GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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