Saudi Vitrified Clay Pipes Co (SAU:2360) 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 Vitrified Clay Pipes Co Operating Margin % Related Terms
Saudi Vitrified Clay Pipes 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 Vitrified Clay Pipes Co Operating Margin % Chart
SAU:2360 vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Saudi Vitrified Clay 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.
Saudi Vitrified Clay Pipes Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Saudi Vitrified Clay Pipes Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Saudi Vitrified Clay Pipes Co's Operating Margin % falls into.
Saudi Vitrified Clay Pipes 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 Vitrified Clay Pipes Co (SAU:2360) has a Operating Margin % of -25.82% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Saudi Vitrified Clay Pipes Co and its competitors. According to the industry distribution chart, Saudi Vitrified Clay Pipes Co ranks #1722 out of 1767 companies in the Construction industry, placing it in the top 97.5%.
Is Saudi Vitrified Clay Pipes Co's Operating Margin % too high?
Saudi Vitrified Clay Pipes Co's current Operating Margin % is -25.82%. Based on the distribution chart, Saudi Vitrified Clay Pipes Co ranks #1722 out of 1767 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Saudi Vitrified Clay Pipes Co has a GF Score™ of 40/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Saudi Vitrified Clay Pipes Co's Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Saudi Vitrified Clay Pipes Co ranks #1722 out of 1767 companies for Operating Margin %. This places Saudi Vitrified Clay Pipes Co in the lower half of its industry. The industry median Operating Margin % is 5.89. 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. 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 Vitrified Clay Pipes 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. Saudi Vitrified Clay Pipes Co's current Operating Margin % is -25.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Vitrified Clay Pipes Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Vitrified Clay Pipes Co (SAU:2360) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼34.83, compared to a current price of ﷼17.12 — trading 50.8% below its estimated fair value. The current Operating Margin % is -25.82%. Saudi Vitrified Clay Pipes Co's overall GF Score™ is 40/100 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 Saudi Vitrified Clay Pipes Co (SAU:2360), the current Operating Margin % is -25.82% 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 Vitrified Clay Pipes Co (SAU:2360) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Vitrified Clay Pipes Co stock appears to be undervalued.
The current stock price of ﷼17.12 is trading 50.8% below its estimated GF Value™ of ﷼34.83.
GuruFocus considers Saudi Vitrified Clay Pipes Co to be Possible Value Trap.
Key valuation signals for SAU:2360:
Operating Margin %: -25.82%
GF Value™: ﷼34.83 vs. price of ﷼17.12 (50.8% below fair value)
No single metric tells the full story. See the SAU:2360 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Vitrified Clay Pipes Co Business Description
Saudi Vitrified Clay Pipes Co is mainly engaged in manufacturing and selling clay and plastic pipes, including their accessories and attachments, in various diameters, and providing all supporting works for this purpose. Its product portfolio comprises perforated clay drain pipes, flexible joints, pipes and bends with different joining systems, clay junctions, and related accessories. The company's operating segments are: Vitrified Clay Pipes, which generate maximum revenue, Cement Pipes, and Plastic Pipes. Geographically, it derives maximum revenue from the Kingdom of Saudi Arabia, and also sells its products to other markets.
40GF Score
Get the complete analysis for SAU:2360
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:2360 has been successfully added to your 
