Saudi Manpower Solutions Co (SMASCO)SAU:1834 20 Operating Margin % is 9.18% as of Mar. 2026, which is 10% above its 10-year median of 8.35. GuruFocus rates SAU:1834 with a GF Score™ of 20/100. The stock has 2 warning signs investors should review. Among 1,070 Business Services companies, Saudi Manpower Solutions Co (SMASCO) ranks better than 58.97% on this metric.
Saudi Manpower Solutions Co (SMASCO) (SAU:1834) 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.
Saudi Manpower Solutions Co (SMASCO) Operating Margin % Related Terms
Saudi Manpower Solutions Co (SMASCO) 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.
Saudi Manpower Solutions Co (SMASCO) Operating Margin % Chart
Saudi Manpower Solutions Co (SMASCO) Annual Data
Trend
Dec23
Dec24
Dec25
Operating Margin %
9.11
7.00
8.35
Saudi Manpower Solutions Co (SMASCO) Quarterly Data
SAU:1834 vs KFY, RHI, TNET: Operating Margin % Comparison
For the Staffing & Employment Services subindustry, Saudi Manpower Solutions Co (SMASCO)'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.
Saudi Manpower Solutions Co (SMASCO) Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Saudi Manpower Solutions Co (SMASCO)'s Operating Margin % distribution charts can be found below:
* The bar in red indicates where Saudi Manpower Solutions Co (SMASCO)'s Operating Margin % falls into.
Saudi Manpower Solutions Co (SMASCO) 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.
Saudi Manpower Solutions Co (SMASCO) (SAU:1834) has a Operating Margin % of 9.18% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Saudi Manpower Solutions Co (SMASCO) and its competitors. This is 10% above median its historical median of 8.35. Over the past decade, Saudi Manpower Solutions Co (SMASCO)'s Operating Margin % has ranged from 7.00 to 9.11. According to the industry distribution chart, Saudi Manpower Solutions Co (SMASCO) ranks #439 out of 1070 companies in the Business Services industry, placing it in the top 41%.
Is Saudi Manpower Solutions Co (SMASCO)'s Operating Margin % too high?
Saudi Manpower Solutions Co (SMASCO)'s current Operating Margin % of 9.18% is 10% above median its 10-year median of 8.35. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 9.11. The Business Services industry median Operating Margin % is 6.33. Saudi Manpower Solutions Co (SMASCO)'s value of 9.18% is 45% above this industry median. Based on the distribution chart, Saudi Manpower Solutions Co (SMASCO) ranks #439 out of 1070 companies in the Business Services industry, which is above the industry midpoint. Overall, Saudi Manpower Solutions Co (SMASCO) has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Saudi Manpower Solutions Co (SMASCO)'s Operating Margin % compare to KFY and RHI?
According to the Business Services industry distribution chart, Saudi Manpower Solutions Co (SMASCO) ranks #439 out of 1070 companies for Operating Margin %. This puts Saudi Manpower Solutions Co (SMASCO) in the upper half of its industry. The industry median Operating Margin % is 6.33. Saudi Manpower Solutions Co (SMASCO)'s value of 9.18% is 45% above this benchmark. Historically, Saudi Manpower Solutions Co (SMASCO)'s own Operating Margin % has ranged from 7.00 to 9.11 over the past decade. While the company's 10-year median is 8.35 vs. the industry median of 6.33, Saudi Manpower Solutions Co (SMASCO) 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 Business Services company?
The median Operating Margin % among Business Services companies is 6.33, based on 1,070 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. Saudi Manpower Solutions Co (SMASCO)'s current Operating Margin % of 9.18% is 45% 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 Saudi Manpower Solutions Co (SMASCO) and its competitors. For the Business Services industry, the median Operating Margin % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Manpower Solutions Co (SMASCO)'s current Operating Margin % is 9.18%, which is 10% above median its own 10-year median of 8.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Manpower Solutions Co (SMASCO) stock overvalued right now?
Saudi Manpower Solutions Co (SMASCO) (SAU:1834) has a current Operating Margin % of 9.18%. The current Operating Margin % is 9.18%, which is 10% above median its 10-year median of 8.35 and 45% above the Business Services industry median of 6.33. Saudi Manpower Solutions Co (SMASCO)'s overall GF Score™ is 20/100 with 2 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 Saudi Manpower Solutions Co (SMASCO) (SAU:1834), the current Operating Margin % is 9.18% 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.
Saudi Manpower Solutions Co (SMASCO) Business Description
Saudi Manpower Solutions Co (SMASCO) mainly provides employment agency services and administration and support to individuals and businesses for temporary employment of foreign labour. The Group's reportable operating segments are: Corporate, Individuals, Logistic, and Others. Maximum revenue is derived from the Corporate segment, which provides services of expatriate and Saudi labour to companies whose contracts extend for two years. The Individuals segment provides home labour services to individual customers whose contract duration ranges from one month to two years, including various hourly works, and the Logistic segment includes storage facilities for all types of goods, accommodation services, and transportation services.
20GF Score
Get the complete analysis for SAU:1834
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SAU:1834 has been successfully added to your 
