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Umm Al-Qura Cement CoSAU:3005 -0.22%77 Operating Margin % is 32.00% as of Mar. 2026, which is 29% above its 10-year median of 24.89. GuruFocus rates SAU:3005 with a GF Score™ of 77/100 and a GF Value™ of ﷼23.23 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 402 Building Materials companies, Umm Al-Qura Cement Co ranks better than 90.05% on this metric.
Umm Al-Qura Cement Co operating margin has been in a 5-year decline. The average rate of decline per year is -15.4%.
The historical rank and industry rank for Umm Al-Qura Cement Co's Operating Margin % or its related term are showing as below:
SAU:3005'
s Operating Margin % Range Over the Past 10 Years
Min: -5.99 Med: 24.89 Max: 43.53
Current: 23.98
SAU:3005's Operating Margin % is ranked better than 90.05% of 402
companies
in the Building Materials industry
Industry Median: 7.575
vs SAU:3005: 23.98
Umm Al-Qura Cement Co's 5-Year Average Operating Margin % Growth Rate was -15.40% per year.
Umm Al-Qura Cement Co (SAU:3005) 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.
Umm Al-Qura Cement Co Operating Margin % Related Terms
Umm Al-Qura Cement Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Umm Al-Qura Cement 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:3005 vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, Umm Al-Qura Cement 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.
Umm Al-Qura Cement Co Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Umm Al-Qura Cement Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Umm Al-Qura Cement Co's Operating Margin % falls into.
Umm Al-Qura Cement 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.
Umm Al-Qura Cement 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.
Umm Al-Qura Cement Co (SAU:3005) has a Operating Margin % of 32.00% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Umm Al-Qura Cement Co and its competitors. This is 29% above median its historical median of 24.89. According to the industry distribution chart, Umm Al-Qura Cement Co ranks #40 out of 402 companies in the Building Materials industry, placing it in the top 10%.
Is Umm Al-Qura Cement Co's Operating Margin % too high?
Umm Al-Qura Cement Co's current Operating Margin % of 32.00% is 29% above median its 10-year median of 24.89. The Building Materials industry median Operating Margin % is 7.58. Umm Al-Qura Cement Co's value of 32.00% is 322.4% above this industry median. Based on the distribution chart, Umm Al-Qura Cement Co ranks #40 out of 402 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Umm Al-Qura Cement Co has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Umm Al-Qura Cement Co's Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Umm Al-Qura Cement Co ranks #40 out of 402 companies for Operating Margin %. This places Umm Al-Qura Cement Co in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.58. Umm Al-Qura Cement Co's value of 32.00% is 322.4% above this benchmark. While the company's 10-year median is 24.89 vs. the industry median of 7.58, Umm Al-Qura Cement 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.58, based on 402 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. Umm Al-Qura Cement Co's current Operating Margin % of 32.00% is 322.4% 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 Umm Al-Qura Cement Co and its competitors. For the Building Materials industry, the median Operating Margin % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Umm Al-Qura Cement Co's current Operating Margin % is 32.00%, which is 29% above median its own 10-year median of 24.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Umm Al-Qura Cement Co stock overvalued right now?
Based on GuruFocus' analysis, Umm Al-Qura Cement Co (SAU:3005) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼23.23, compared to a current price of ﷼13.53 — trading 41.8% below its estimated fair value. The current Operating Margin % is 32.00%, which is 29% above median its 10-year median of 24.89 and 322.4% above the Building Materials industry median of 7.58. Umm Al-Qura Cement Co's overall GF Score™ is 77/100 with 5 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 Umm Al-Qura Cement Co (SAU:3005), the current Operating Margin % is 32.00% 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 Umm Al-Qura Cement Co (SAU:3005) Overvalued in 2026?
Based on GuruFocus' analysis, Umm Al-Qura Cement Co stock appears to be undervalued.
The current stock price of ﷼13.53 is trading 41.8% below its estimated GF Value™ of ﷼23.23.
GuruFocus considers Umm Al-Qura Cement Co to be Possible Value Trap.
Key valuation signals for SAU:3005:
Operating Margin %: 32.00% (29% above median its 10-year median of 24.89)
GF Value™: ﷼23.23 vs. price of ﷼13.53 (41.8% below fair value)
Industry Position: 322.4% above the Building Materials median (#40 of 402)
No single metric tells the full story. See the SAU:3005 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Umm Al-Qura Cement Co is engaged in producing all kinds of Portland Cement in Saudi Arabia. The company is also engaged in manufacturing salt-resistant cement, white cement, and agglomerated cement (clinker). The products of the company includes Cement OPC, Sulphate Resistant Cement, Portland Pozzolana Cement, and others.
77GF Score
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