Saudi Ground Services CoSAU:4031 +0.64%83 Operating Margin % is 2.38% as of Mar. 2026, which is 83% below its 10-year median of 14.24. GuruFocus rates SAU:4031 with a GF Score™ of 83/100 and a GF Value™ of ﷼47.34 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,007 Transportation companies, Saudi Ground Services Co ranks better than 62.56% on this metric.
Saudi Ground Services Co (SAU:4031) 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 Ground Services Co Operating Margin % Related Terms
Saudi Ground Services 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.
SAU:4031 vs JOBY, CAAP: Operating Margin % Comparison
For the Airports & Air Services subindustry, Saudi Ground Services 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 Ground Services Co Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Saudi Ground Services Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Saudi Ground Services Co's Operating Margin % falls into.
Saudi Ground Services 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.
Saudi Ground Services 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.
Saudi Ground Services Co (SAU:4031) has a Operating Margin % of 2.38% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Saudi Ground Services Co and its competitors. This is 83% below median its historical median of 14.24. According to the industry distribution chart, Saudi Ground Services Co ranks #377 out of 1007 companies in the Transportation industry, placing it in the top 37.4%.
Is Saudi Ground Services Co's Operating Margin % too high?
Saudi Ground Services Co's current Operating Margin % of 2.38% is 83% below median its 10-year median of 14.24. The Transportation industry median Operating Margin % is 7.36. Saudi Ground Services Co's value of 2.38% is 67.7% below this industry median. Based on the distribution chart, Saudi Ground Services Co ranks #377 out of 1007 companies in the Transportation industry, which is above the industry midpoint. Overall, Saudi Ground Services Co has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Saudi Ground Services Co's Operating Margin % compare to JOBY and CAAP?
According to the Transportation industry distribution chart, Saudi Ground Services Co ranks #377 out of 1007 companies for Operating Margin %. This puts Saudi Ground Services Co in the upper half of its industry. The industry median Operating Margin % is 7.36. Saudi Ground Services Co's value of 2.38% is 67.7% below this benchmark. While the company's 10-year median is 14.24 vs. the industry median of 7.36, Saudi Ground Services Co has consistently been below 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 Transportation company?
The median Operating Margin % among Transportation companies is 7.36, based on 1,007 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. Saudi Ground Services Co's current Operating Margin % of 2.38% is 67.7% below 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 Saudi Ground Services Co and its competitors. For the Transportation industry, the median Operating Margin % is 7.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Ground Services Co's current Operating Margin % is 2.38%, which is 83% below median its own 10-year median of 14.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Ground Services Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Ground Services Co (SAU:4031) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼47.34, compared to a current price of ﷼31.34 — trading 33.8% below its estimated fair value. The current Operating Margin % is 2.38%, which is 83% below median its 10-year median of 14.24 and 67.7% below the Transportation industry median of 7.36. Saudi Ground Services Co's overall GF Score™ is 83/100 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 Ground Services Co (SAU:4031), the current Operating Margin % is 2.38% 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 Ground Services Co (SAU:4031) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Ground Services Co stock appears to be undervalued.
The current stock price of ﷼31.34 is trading 33.8% below its estimated GF Value™ of ﷼47.34.
GuruFocus considers Saudi Ground Services Co to be Significantly Undervalued.
Key valuation signals for SAU:4031:
Operating Margin %: 2.38% (83% below median its 10-year median of 14.24)
GF Value™: ﷼47.34 vs. price of ﷼31.34 (33.8% below fair value)
Industry Position: 67.7% below the Transportation median (#377 of 1007)
No single metric tells the full story. See the SAU:4031 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Ground Services Co provides ground management services to airline customers. The company is engaged in providing aircraft cleaning, passenger handling, fuel, baggage, and ground handling services to Saudi Arabian Airlines as well as other local and foreign airlines.
83GF 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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