Al-Babtain Power & Telecommunication Co (SAU:2320) 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-Babtain Power & Telecommunication Co Operating Margin % Related Terms
Al-Babtain Power & Telecommunication Co 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-Babtain Power & Telecommunication Co Operating Margin % Chart
Al-Babtain Power & Telecommunication Co Annual Data
SAU:2320 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Al-Babtain Power & Telecommunication 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.
Al-Babtain Power & Telecommunication Co Operating Margin % vs Construction Industry
Al-Babtain Power & Telecommunication 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.
* 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-Babtain Power & Telecommunication Co (SAU:2320) has a Operating Margin % of 22.44% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Al-Babtain Power & Telecommunication Co and its competitors. This is 117% above median its historical median of 10.32. Over the past decade, Al-Babtain Power & Telecommunication Co's Operating Margin % has ranged from 6.27 to 20.90. According to the industry distribution chart, Al-Babtain Power & Telecommunication Co ranks #148 out of 1767 companies in the Construction industry, placing it in the top 8.4%.
Is Al-Babtain Power & Telecommunication Co's Operating Margin % too high?
Al-Babtain Power & Telecommunication Co's current Operating Margin % of 22.44% is 117% above median its 10-year median of 10.32. Over the past 10 years, this metric has ranged from a low of 6.27 to a high of 20.90. The Construction industry median Operating Margin % is 5.89. Al-Babtain Power & Telecommunication Co's value of 22.44% is 281% above this industry median. Based on the distribution chart, Al-Babtain Power & Telecommunication Co ranks #148 out of 1767 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Al-Babtain Power & Telecommunication Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Al-Babtain Power & Telecommunication Co's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Al-Babtain Power & Telecommunication Co ranks #148 out of 1767 companies for Operating Margin %. This places Al-Babtain Power & Telecommunication Co in the top 8% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. Al-Babtain Power & Telecommunication Co's value of 22.44% is 281% above this benchmark. Historically, Al-Babtain Power & Telecommunication Co's own Operating Margin % has ranged from 6.27 to 20.90 over the past decade. While the company's 10-year median is 10.32 vs. the industry median of 5.89, Al-Babtain Power & Telecommunication 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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-Babtain Power & Telecommunication Co's current Operating Margin % of 22.44% is 281% 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-Babtain Power & Telecommunication Co and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al-Babtain Power & Telecommunication Co's current Operating Margin % is 22.44%, which is 117% above median its own 10-year median of 10.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al-Babtain Power & Telecommunication Co stock overvalued right now?
Based on GuruFocus' analysis, Al-Babtain Power & Telecommunication Co (SAU:2320) is currently considered Significantly Overvalued. The stock's GF Value™ is ﷼47.63, compared to a current price of ﷼67.85 — trading 42.5% above its estimated fair value. The current Operating Margin % is 22.44%, which is 117% above median its 10-year median of 10.32 and 281% above the Construction industry median of 5.89. Al-Babtain Power & Telecommunication Co's overall GF Score™ is 62/100 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-Babtain Power & Telecommunication Co (SAU:2320), the current Operating Margin % is 22.44% 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-Babtain Power & Telecommunication Co (SAU:2320) Overvalued in 2026?
Based on GuruFocus' analysis, Al-Babtain Power & Telecommunication Co stock appears to be overvalued.
The current stock price of ﷼67.85 is trading 42.5% above its estimated GF Value™ of ﷼47.63.
GuruFocus considers Al-Babtain Power & Telecommunication Co to be Significantly Overvalued.
Key valuation signals for SAU:2320:
Operating Margin %: 22.44% (117% above median its 10-year median of 10.32)
GF Value™: ﷼47.63 vs. price of ﷼67.85 (42.5% above fair value)
Industry Position: 281% above the Construction median (#148 of 1767)
No single metric tells the full story. See the SAU:2320 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al-Babtain Power & Telecommunication Co Business Description
Al-Babtain Power & Telecommunication Co designs and manufactures poles, masts, and lighting systems for streets, stadiums, and public spaces, as well as towers and poles for power transmission and telecommunications. The company also produces and markets decorative poles and LED lighting, and provides installation, operation, and maintenance services for telecommunications systems, computer networks, and industrial equipment. In addition, it manufactures metal components such as solar photovoltaic tracking systems and fixed structures, supports wind energy and power generation projects, and undertakes electrical and mechanical works, communication system design and installation, as well as contracting and oil and gas field services.
62GF Score
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