Dar Alarkan Real Estate Development Co (SAU:4300) 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.
Dar Alarkan Real Estate Development Co Operating Margin % Related Terms
Dar Alarkan Real Estate 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.
Dar Alarkan Real Estate Development Co Operating Margin % Chart
Dar Alarkan Real Estate Development Co Annual Data
Dar Alarkan Real Estate Development Co Operating Margin % Competitor Comparison
For the Real Estate - Development subindustry, Dar Alarkan Real Estate 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.
Dar Alarkan Real Estate Development Co Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Dar Alarkan Real Estate Development Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Dar Alarkan Real Estate Development Co's Operating Margin % falls into.
Dar Alarkan Real Estate 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.
Dar Alarkan Real Estate Development Co (SAU:4300) has a Operating Margin % of 41.26% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Dar Alarkan Real Estate Development Co and its competitors. This is 49% above median its historical median of 27.74. Over the past decade, Dar Alarkan Real Estate Development Co's Operating Margin % has ranged from 13.85 to 41.87. According to the industry distribution chart, Dar Alarkan Real Estate Development Co ranks #344 out of 1748 companies in the Real Estate industry, placing it in the top 19.7%.
Is Dar Alarkan Real Estate Development Co's Operating Margin % too high?
Dar Alarkan Real Estate Development Co's current Operating Margin % of 41.26% is 49% above median its 10-year median of 27.74. Over the past 10 years, this metric has ranged from a low of 13.85 to a high of 41.87. The Real Estate industry median Operating Margin % is 13.22. Dar Alarkan Real Estate Development Co's value of 41.26% is 212.1% above this industry median. Based on the distribution chart, Dar Alarkan Real Estate Development Co ranks #344 out of 1748 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Dar Alarkan Real Estate Development Co has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dar Alarkan Real Estate Development Co's Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, Dar Alarkan Real Estate Development Co ranks #344 out of 1748 companies for Operating Margin %. This places Dar Alarkan Real Estate Development Co in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 13.22. Dar Alarkan Real Estate Development Co's value of 41.26% is 212.1% above this benchmark. Historically, Dar Alarkan Real Estate Development Co's own Operating Margin % has ranged from 13.85 to 41.87 over the past decade. While the company's 10-year median is 27.74 vs. the industry median of 13.22, Dar Alarkan Real Estate 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.22, based on 1,748 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. Dar Alarkan Real Estate Development Co's current Operating Margin % of 41.26% is 212.1% 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 Dar Alarkan Real Estate Development Co and its competitors. For the Real Estate industry, the median Operating Margin % is 13.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dar Alarkan Real Estate Development Co's current Operating Margin % is 41.26%, which is 49% above median its own 10-year median of 27.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dar Alarkan Real Estate Development Co stock overvalued right now?
Based on GuruFocus' analysis, Dar Alarkan Real Estate Development Co (SAU:4300) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼20.31, compared to a current price of ﷼17.54 — trading 13.6% below its estimated fair value. The current Operating Margin % is 41.26%, which is 49% above median its 10-year median of 27.74 and 212.1% above the Real Estate industry median of 13.22. Dar Alarkan Real Estate Development Co's overall GF Score™ is 90/100 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 Dar Alarkan Real Estate Development Co (SAU:4300), the current Operating Margin % is 41.26% 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 Dar Alarkan Real Estate Development Co (SAU:4300) Overvalued in 2026?
Based on GuruFocus' analysis, Dar Alarkan Real Estate Development Co stock appears to be undervalued.
The current stock price of ﷼17.54 is trading 13.6% below its estimated GF Value™ of ﷼20.31.
GuruFocus considers Dar Alarkan Real Estate Development Co to be Modestly Undervalued.
Key valuation signals for SAU:4300:
Operating Margin %: 41.26% (49% above median its 10-year median of 27.74)
GF Value™: ﷼20.31 vs. price of ﷼17.54 (13.6% below fair value)
Industry Position: 212.1% above the Real Estate median (#344 of 1748)
No single metric tells the full story. See the SAU:4300 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dar Alarkan Real Estate Development Co Business Description
Dar Alarkan Real Estate Development Company along with its subsidiaries is engaged in the business of development, sale and leasing of real estate projects and associated activities. The company operates in reportable segments namely, Development properties, Leasing of properties and others. The majority of the revenue is generated from the development properties segment. The group mainly operates in Saudi Arabia.
90GF Score
Get the complete analysis for SAU:4300
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SAU:4300 has been successfully added to your 
