Saudi Kayan Petrochemical Co (SAU:2350) 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 Kayan Petrochemical Co Operating Margin % Related Terms
Saudi Kayan Petrochemical 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.
Saudi Kayan Petrochemical Co Operating Margin % Chart
For the Chemicals subindustry, Saudi Kayan Petrochemical 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.
Saudi Kayan Petrochemical Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Saudi Kayan Petrochemical Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Saudi Kayan Petrochemical Co's Operating Margin % falls into.
Saudi Kayan Petrochemical 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.
Saudi Kayan Petrochemical Co (SAU:2350) has a Operating Margin % of -31.04% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Saudi Kayan Petrochemical Co and its competitors. According to the industry distribution chart, Saudi Kayan Petrochemical Co ranks #1467 out of 1580 companies in the Chemicals industry, placing it in the top 92.8%.
Is Saudi Kayan Petrochemical Co's Operating Margin % too high?
Saudi Kayan Petrochemical Co's current Operating Margin % is -31.04%. Based on the distribution chart, Saudi Kayan Petrochemical Co ranks #1467 out of 1580 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Saudi Kayan Petrochemical Co has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Saudi Kayan Petrochemical Co's Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Saudi Kayan Petrochemical Co ranks #1467 out of 1580 companies for Operating Margin %. This places Saudi Kayan Petrochemical Co in the lower half of its industry. The industry median Operating Margin % is 6.02. 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 6.02, based on 1,580 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. 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 Kayan Petrochemical Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Kayan Petrochemical Co's current Operating Margin % is -31.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Kayan Petrochemical Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Kayan Petrochemical Co (SAU:2350) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼6.97, compared to a current price of ﷼5.24 — trading 24.8% below its estimated fair value. The current Operating Margin % is -31.04%. Saudi Kayan Petrochemical Co's overall GF Score™ is 58/100 with 4 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 Kayan Petrochemical Co (SAU:2350), the current Operating Margin % is -31.04% 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 Kayan Petrochemical Co (SAU:2350) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Kayan Petrochemical Co stock appears to be undervalued.
The current stock price of ﷼5.24 is trading 24.8% below its estimated GF Value™ of ﷼6.97.
GuruFocus considers Saudi Kayan Petrochemical Co to be Modestly Undervalued.
Key valuation signals for SAU:2350:
Operating Margin %: -31.04%
GF Value™: ﷼6.97 vs. price of ﷼5.24 (24.8% below fair value)
No single metric tells the full story. See the SAU:2350 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Kayan Petrochemical Co is engaged in manufacturing a wide range of petrochemical products. Its product portfolio consists of polypropylene, propylene, acetone, polyethene, ethoxylate, ethylene, ethylene glycol, bisphenol, ethanolamine, industrial fatty alcohol, polycarbonate, and other petrochemical products. The company generates revenue from the sale of petrochemical products.
58GF 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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