Saudi Automotive Services CoSAU:4050 -0.91%87 Operating Margin % is 0.57% as of Mar. 2026, which is 72% below its 10-year median of 2.02. GuruFocus rates SAU:4050 with a GF Score™ of 87/100 and a GF Value™ of ﷼75.85 (Significantly Undervalued). The stock has 10 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Saudi Automotive Services Co ranks worse than 69.41% on this metric.
Saudi Automotive Services Co (SAU:4050) 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 Automotive Services Co Operating Margin % Related Terms
Saudi Automotive 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.
Saudi Automotive Services Co Operating Margin % Chart
SAU:4050 vs CASY, WSM, ULTA: Operating Margin % Comparison
For the Specialty Retail subindustry, Saudi Automotive 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 Automotive Services Co Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Saudi Automotive Services Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Saudi Automotive Services Co's Operating Margin % falls into.
Saudi Automotive 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.
* 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 Automotive Services Co (SAU:4050) has a Operating Margin % of 0.57% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Saudi Automotive Services Co and its competitors. This is 72% below median its historical median of 2.02. Over the past decade, Saudi Automotive Services Co's Operating Margin % has ranged from 1.06 to 4.31. According to the industry distribution chart, Saudi Automotive Services Co ranks #783 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 69.4%.
Is Saudi Automotive Services Co's Operating Margin % too high?
Saudi Automotive Services Co's current Operating Margin % of 0.57% is 72% below median its 10-year median of 2.02. Over the past 10 years, this metric has ranged from a low of 1.06 to a high of 4.31. The Retail - Cyclical industry median Operating Margin % is 3.91. Saudi Automotive Services Co's value of 0.57% is 85.4% below this industry median. Based on the distribution chart, Saudi Automotive Services Co ranks #783 out of 1128 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Saudi Automotive Services Co has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Saudi Automotive Services Co's Operating Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Saudi Automotive Services Co ranks #783 out of 1128 companies for Operating Margin %. This places Saudi Automotive Services Co in the lower half of its industry. The industry median Operating Margin % is 3.91. Saudi Automotive Services Co's value of 0.57% is 85.4% below this benchmark. Historically, Saudi Automotive Services Co's own Operating Margin % has ranged from 1.06 to 4.31 over the past decade. While the company's 10-year median is 2.02 vs. the industry median of 3.91, Saudi Automotive 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 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 Automotive Services Co's current Operating Margin % of 0.57% is 85.4% 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 Automotive Services Co and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Automotive Services Co's current Operating Margin % is 0.57%, which is 72% below median its own 10-year median of 2.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Automotive Services Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Automotive Services Co (SAU:4050) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼75.85, compared to a current price of ﷼45.60 — trading 39.9% below its estimated fair value. The current Operating Margin % is 0.57%, which is 72% below median its 10-year median of 2.02 and 85.4% below the Retail - Cyclical industry median of 3.91. Saudi Automotive Services Co's overall GF Score™ is 87/100 with 10 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 Automotive Services Co (SAU:4050), the current Operating Margin % is 0.57% 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 Automotive Services Co (SAU:4050) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Automotive Services Co stock appears to be undervalued.
The current stock price of ﷼45.60 is trading 39.9% below its estimated GF Value™ of ﷼75.85.
GuruFocus considers Saudi Automotive Services Co to be Significantly Undervalued.
Key valuation signals for SAU:4050:
Operating Margin %: 0.57% (72% below median its 10-year median of 2.02)
GF Value™: ﷼75.85 vs. price of ﷼45.60 (39.9% below fair value)
Industry Position: 85.4% below the Retail - Cyclical median (#783 of 1128)
No single metric tells the full story. See the SAU:4050 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Automotive Services Co owns and manages fuel stations, auto and travelers services centers, motels, restaurants, C-stores inside cities and on highways, and an auto club which issues customs traffic documents (TripTik), international driving licenses, and organizes sports activities. In addition, the group also provides road transportation services for liquid and dry materials. Along with its subsidiaries, it operates in the following segments: Retail and operations, Saudi Club, SASCO Palm, Transportation Fleet, and Others. Maximum revenue is derived from the Retail and operations segment, which represents income generated from its fuel station operations and the operation of residential and commercial buildings. Geographically, the group operates only in the Kingdom of Saudi Arabia.
87GF Score
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