Saudi Basic IndustriesSAU:2010 +0.09%61 Operating Margin % is 5.30% as of Mar. 2026, which is 42% below its 10-year median of 9.12. GuruFocus rates SAU:2010 with a GF Score™ of 61/100 and a GF Value™ of ﷼55.72 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,584 Chemicals companies, Saudi Basic Industries ranks better than 52.21% on this metric.
Saudi Basic Industries Corp has recorded a loss in operating income at least once over the past 3 years.
Saudi Basic Industries (SAU:2010) 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 Basic Industries Operating Margin % Related Terms
Saudi Basic Industries Operating Margin % Historical Data
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The historical data trend for Saudi Basic Industries'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 Chemicals subindustry, Saudi Basic Industries'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 Basic Industries Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Saudi Basic Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Saudi Basic Industries's Operating Margin % falls into.
Saudi Basic Industries 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.
Saudi Basic Industries'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.
Saudi Basic Industries (SAU:2010) has a Operating Margin % of 5.30% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Saudi Basic Industries and its competitors. This is 42% below median its historical median of 9.12. Over the past decade, Saudi Basic Industries' Operating Margin % has ranged from 2.46 to 21.45. According to the industry distribution chart, Saudi Basic Industries ranks #757 out of 1584 companies in the Chemicals industry, placing it in the top 47.8%.
Is Saudi Basic Industries' Operating Margin % too high?
Saudi Basic Industries' current Operating Margin % of 5.30% is 42% below median its 10-year median of 9.12. Over the past 10 years, this metric has ranged from a low of 2.46 to a high of 21.45. The Chemicals industry median Operating Margin % is 6.03. Saudi Basic Industries' value of 5.30% is 12% below this industry median. Based on the distribution chart, Saudi Basic Industries ranks #757 out of 1584 companies in the Chemicals industry, which is above the industry midpoint. Overall, Saudi Basic Industries has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Saudi Basic Industries' Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Saudi Basic Industries ranks #757 out of 1584 companies for Operating Margin %. This puts Saudi Basic Industries in the upper half of its industry. The industry median Operating Margin % is 6.03. Saudi Basic Industries' value of 5.30% is 12% below this benchmark. Historically, Saudi Basic Industries' own Operating Margin % has ranged from 2.46 to 21.45 over the past decade. While the company's 10-year median is 9.12 vs. the industry median of 6.03, Saudi Basic Industries has consistently been below 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,584 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 Basic Industries's current Operating Margin % of 5.30% is 12% below 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 Basic Industries and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Basic Industries's current Operating Margin % is 5.30%, which is 42% below median its own 10-year median of 9.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Basic Industries stock overvalued right now?
Based on GuruFocus' analysis, Saudi Basic Industries (SAU:2010) is currently considered Fairly Valued. The stock's GF Value™ is ﷼55.72, compared to a current price of ﷼53.45 — trading 4.1% below its estimated fair value. The current Operating Margin % is 5.30%, which is 42% below median its 10-year median of 9.12 and 12% below the Chemicals industry median of 6.03. Saudi Basic Industries' overall GF Score™ is 61/100 with 8 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 Basic Industries (SAU:2010), the current Operating Margin % is 5.30% 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 Saudi Basic Industries (SAU:2010) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Basic Industries stock appears to be undervalued.
The current stock price of ﷼53.45 is trading 4.1% below its estimated GF Value™ of ﷼55.72.
GuruFocus considers Saudi Basic Industries to be Fairly Valued.
Key valuation signals for SAU:2010:
Operating Margin %: 5.30% (42% below median its 10-year median of 9.12)
GF Value™: ﷼55.72 vs. price of ﷼53.45 (4.1% below fair value)
Industry Position: 12% below the Chemicals median (#757 of 1584)
No single metric tells the full story. See the SAU:2010 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Basic Industries Corp is a chemicals manufacturer in Saudi Arabia. The primary business segments of the company are Petrochemicals and Agri-nutrients. In Petrochemicals segment products included polymers and chemicals are produced from hydrocarbon feedstock including methane, ethane, and propane, it also includes the production of a range of fertilisers; including urea, ammonia, phosphate, as well as compound fertilisers. The Hadeed is concerned with production of steel products, long products and flat products. The company derives maximum revenue from Petrochemicals segment. Geographically, it generates maximum revenue from Rest of Asia followed by China, KSA, America and Europe.
61GF Score
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