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Middle East Pharmaceutical Industries CoSAU:4016 +0.92%22 Operating Margin % is 23.98% as of Mar. 2026, which is 1% above its 10-year median of 23.65. GuruFocus rates SAU:4016 with a GF Score™ of 22/100. The stock has 3 warning signs investors should review. Among 959 Drug Manufacturers companies, Middle East Pharmaceutical Industries Co ranks better than 88.53% on this metric.
SAU:4016'
s Operating Margin % Range Over the Past 10 Years
Min: 23.11 Med: 23.65 Max: 23.92
Current: 23.92
SAU:4016's Operating Margin % is ranked better than 88.53% of 959
companies
in the Drug Manufacturers industry
Industry Median: 7.59
vs SAU:4016: 23.92
Middle East Pharmaceutical Industries Co (SAU:4016) 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.
Middle East Pharmaceutical Industries Co Operating Margin % Related Terms
Middle East Pharmaceutical Industries 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.
Middle East Pharmaceutical Industries Co Operating Margin % Chart
Middle East Pharmaceutical Industries Co Annual Data
Trend
Dec23
Dec24
Dec25
Operating Margin %
23.65
23.11
23.74
Middle East Pharmaceutical Industries Co Quarterly Data
SAU:4016 vs ZTS, UTHR, VTRS: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Middle East Pharmaceutical Industries 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.
Middle East Pharmaceutical Industries Co Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Middle East Pharmaceutical Industries Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Middle East Pharmaceutical Industries Co's Operating Margin % falls into.
Middle East Pharmaceutical Industries 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.
Middle East Pharmaceutical Industries Co (SAU:4016) has a Operating Margin % of 23.98% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Middle East Pharmaceutical Industries Co and its competitors. This is near median its historical median of 23.65. Over the past decade, Middle East Pharmaceutical Industries Co's Operating Margin % has ranged from 23.11 to 23.92. According to the industry distribution chart, Middle East Pharmaceutical Industries Co ranks #110 out of 959 companies in the Drug Manufacturers industry, placing it in the top 11.5%.
Is Middle East Pharmaceutical Industries Co's Operating Margin % too high?
Middle East Pharmaceutical Industries Co's current Operating Margin % of 23.98% is near median its 10-year median of 23.65. Over the past 10 years, this metric has ranged from a low of 23.11 to a high of 23.92. The Drug Manufacturers industry median Operating Margin % is 7.59. Middle East Pharmaceutical Industries Co's value of 23.98% is 215.9% above this industry median. Based on the distribution chart, Middle East Pharmaceutical Industries Co ranks #110 out of 959 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Middle East Pharmaceutical Industries Co has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Middle East Pharmaceutical Industries Co's Operating Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Middle East Pharmaceutical Industries Co ranks #110 out of 959 companies for Operating Margin %. This places Middle East Pharmaceutical Industries Co in the top 12% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.59. Middle East Pharmaceutical Industries Co's value of 23.98% is 215.9% above this benchmark. Historically, Middle East Pharmaceutical Industries Co's own Operating Margin % has ranged from 23.11 to 23.92 over the past decade. While the company's 10-year median is 23.65 vs. the industry median of 7.59, Middle East Pharmaceutical Industries 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.59, based on 959 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. Middle East Pharmaceutical Industries Co's current Operating Margin % of 23.98% is 215.9% 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 Middle East Pharmaceutical Industries Co and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Middle East Pharmaceutical Industries Co's current Operating Margin % is 23.98%, which is near median its own 10-year median of 23.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Middle East Pharmaceutical Industries Co stock overvalued right now?
Middle East Pharmaceutical Industries Co (SAU:4016) has a current Operating Margin % of 23.98%. The current Operating Margin % is 23.98%, which is near median its 10-year median of 23.65 and 215.9% above the Drug Manufacturers industry median of 7.59. Middle East Pharmaceutical Industries Co's overall GF Score™ is 22/100 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 Middle East Pharmaceutical Industries Co (SAU:4016), the current Operating Margin % is 23.98% 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.
Middle East Pharmaceutical Industries Co Business Description
Middle East Pharmaceutical Industries Co is a holding company engaged in manufacturing medicines, medicated and non-medicated creams and gels. The company operates in Private, Public, and Export segments. Geographically, it generates the majority of its revenue from Saudi Arabia.
22GF Score
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