Makkah Construction & Development Co (SAU:4100) 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.
Makkah Construction & Development Co Operating Margin % Related Terms
Makkah Construction & Development 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.
Makkah Construction & Development Co Operating Margin % Chart
SAU:4100 vs MAR, HLT, H: Operating Margin % Comparison
For the Lodging subindustry, Makkah Construction & Development 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.
Makkah Construction & Development Co Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Makkah Construction & Development Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Makkah Construction & Development Co's Operating Margin % falls into.
Makkah Construction & Development 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.
Makkah Construction & Development Co (SAU:4100) has a Operating Margin % of 62.43% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Makkah Construction & Development Co and its competitors. This is 30% above median its historical median of 47.93. According to the industry distribution chart, Makkah Construction & Development Co ranks #24 out of 844 companies in the Travel & Leisure industry, placing it in the top 2.8%.
Is Makkah Construction & Development Co's Operating Margin % too high?
Makkah Construction & Development Co's current Operating Margin % of 62.43% is 30% above median its 10-year median of 47.93. The Travel & Leisure industry median Operating Margin % is 8.14. Makkah Construction & Development Co's value of 62.43% is 667.4% above this industry median. Based on the distribution chart, Makkah Construction & Development Co ranks #24 out of 844 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Makkah Construction & Development Co has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Makkah Construction & Development Co's Operating Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Makkah Construction & Development Co ranks #24 out of 844 companies for Operating Margin %. This places Makkah Construction & Development Co in the top 3% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 8.14. Makkah Construction & Development Co's value of 62.43% is 667.4% above this benchmark. While the company's 10-year median is 47.93 vs. the industry median of 8.14, Makkah Construction & Development 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 Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.14, based on 844 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. Makkah Construction & Development Co's current Operating Margin % of 62.43% is 667.4% 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 Makkah Construction & Development Co and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Makkah Construction & Development Co's current Operating Margin % is 62.43%, which is 30% above median its own 10-year median of 47.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Makkah Construction & Development Co stock overvalued right now?
Based on GuruFocus' analysis, Makkah Construction & Development Co (SAU:4100) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼110.86, compared to a current price of ﷼90.50 — trading 18.4% below its estimated fair value. The current Operating Margin % is 62.43%, which is 30% above median its 10-year median of 47.93 and 667.4% above the Travel & Leisure industry median of 8.14. Makkah Construction & Development Co's overall GF Score™ is 89/100 with 4 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 Makkah Construction & Development Co (SAU:4100), the current Operating Margin % is 62.43% 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 Makkah Construction & Development Co (SAU:4100) Overvalued in 2026?
Based on GuruFocus' analysis, Makkah Construction & Development Co stock appears to be undervalued.
The current stock price of ﷼90.50 is trading 18.4% below its estimated GF Value™ of ﷼110.86.
GuruFocus considers Makkah Construction & Development Co to be Modestly Undervalued.
Key valuation signals for SAU:4100:
Operating Margin %: 62.43% (30% above median its 10-year median of 47.93)
GF Value™: ﷼110.86 vs. price of ﷼90.50 (18.4% below fair value)
Industry Position: 667.4% above the Travel & Leisure median (#24 of 844)
No single metric tells the full story. See the SAU:4100 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Makkah Construction & Development Co Business Description
Makkah Construction & Development Co is engaged in developing construction projects such as developing facilities near the Holy Mosque of Makkah. The company's objectives are to Build up the areas around Makkah Holy mosque, own, develop, operate, and invest in the real estate around Makkah Holy mosque, and carry out all engineering works, survey, demolishing & construction works for the company projects. The segments of the company include: The Commercial Center; Hotels and towers; Hajj and Umrah; Investment sector; and Other (not specified). It derives maximum revenue from Hotels and Towers segment. The projects of the company include: Jabal Omar Development Company; Masar Project; and Jarahm Project.
89GF 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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