Arabian Pipes CoSAU:2200 -3.01%69 Operating Margin % is 12.98% as of Mar. 2026, which is 97% above its 10-year median of 6.59. GuruFocus rates SAU:2200 with a GF Score™ of 69/100 and a GF Value™ of ﷼5.31 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 615 Steel companies, Arabian Pipes Co ranks better than 90.24% on this metric.
Arabian Pipes Co (SAU:2200) 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.
Arabian Pipes Co Operating Margin % Related Terms
Arabian Pipes Co Operating Margin % Historical Data
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The historical data trend for Arabian Pipes 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.
SAU:2200 vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Arabian Pipes 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.
Arabian Pipes Co Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Arabian Pipes Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Arabian Pipes Co's Operating Margin % falls into.
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.
Arabian Pipes 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.
Arabian Pipes Co (SAU:2200) has a Operating Margin % of 12.98% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Arabian Pipes Co and its competitors. This is 97% above median its historical median of 6.59. According to the industry distribution chart, Arabian Pipes Co ranks #60 out of 615 companies in the Steel industry, placing it in the top 9.8%.
Is Arabian Pipes Co's Operating Margin % too high?
Arabian Pipes Co's current Operating Margin % of 12.98% is 97% above median its 10-year median of 6.59. The Steel industry median Operating Margin % is 2.99. Arabian Pipes Co's value of 12.98% is 334.1% above this industry median. Based on the distribution chart, Arabian Pipes Co ranks #60 out of 615 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Arabian Pipes Co has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arabian Pipes Co's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Arabian Pipes Co ranks #60 out of 615 companies for Operating Margin %. This places Arabian Pipes Co in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 2.99. Arabian Pipes Co's value of 12.98% is 334.1% above this benchmark. While the company's 10-year median is 6.59 vs. the industry median of 2.99, Arabian Pipes 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 Steel company?
The median Operating Margin % among Steel companies is 2.99, based on 615 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. Arabian Pipes Co's current Operating Margin % of 12.98% is 334.1% 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 Arabian Pipes Co and its competitors. For the Steel industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Pipes Co's current Operating Margin % is 12.98%, which is 97% above median its own 10-year median of 6.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Pipes Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Pipes Co (SAU:2200) is currently considered Modestly Overvalued. The stock's GF Value™ is ﷼5.31, compared to a current price of ﷼6.77 — trading 27.5% above its estimated fair value. The current Operating Margin % is 12.98%, which is 97% above median its 10-year median of 6.59 and 334.1% above the Steel industry median of 2.99. Arabian Pipes Co's overall GF Score™ is 69/100 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 Arabian Pipes Co (SAU:2200), the current Operating Margin % is 12.98% 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 Arabian Pipes Co (SAU:2200) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Pipes Co stock appears to be overvalued.
The current stock price of ﷼6.77 is trading 27.5% above its estimated GF Value™ of ﷼5.31.
GuruFocus considers Arabian Pipes Co to be Modestly Overvalued.
Key valuation signals for SAU:2200:
Operating Margin %: 12.98% (97% above median its 10-year median of 6.59)
GF Value™: ﷼5.31 vs. price of ﷼6.77 (27.5% above fair value)
Industry Position: 334.1% above the Steel median (#60 of 615)
No single metric tells the full story. See the SAU:2200 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Pipes Co is engaged in the production and marketing of longitudinally welded steel pipes for pipelines and for construction and commercial purposes. Its other activities include bending, shaping, and threading pipes from the outside and inside, carrying out commercial business such as selling and buying pipes and their accessories, carrying out pipeline extension works, manufacturing pipes, hoses, plastic pipes, their connections and accessories, and manufacturing hollow iron and steel. The company generates the majority of revenue from Saudi Arabia.
69GF Score
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