Arabian Centres CoSAU:4321 +0.29%83 Operating Margin % is 68.04% as of Mar. 2026, which is 13% above its 10-year median of 60.40. GuruFocus rates SAU:4321 with a GF Score™ of 83/100 and a GF Value™ of ﷼21.02 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,748 Real Estate companies, Arabian Centres Co ranks better than 92.51% on this metric.
Arabian Centres Co (SAU:4321) 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.
Arabian Centres Co Operating Margin % Related Terms
Arabian Centres Co Operating Margin % Historical Data
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The historical data trend for Arabian Centres Co's Operating Margin % can be seen below:
* 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.
Arabian Centres Co Operating Margin % Competitor Comparison
For the Real Estate - Diversified subindustry, Arabian Centres 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.
Arabian Centres Co Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Arabian Centres Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Arabian Centres Co's Operating Margin % falls into.
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.
Arabian Centres 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.
Arabian Centres Co (SAU:4321) has a Operating Margin % of 68.04% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Arabian Centres Co and its competitors. This is 13% above median its historical median of 60.40. Over the past decade, Arabian Centres Co's Operating Margin % has ranged from 44.23 to 73.09. According to the industry distribution chart, Arabian Centres Co ranks #131 out of 1748 companies in the Real Estate industry, placing it in the top 7.5%.
Is Arabian Centres Co's Operating Margin % too high?
Arabian Centres Co's current Operating Margin % of 68.04% is 13% above median its 10-year median of 60.40. Over the past 10 years, this metric has ranged from a low of 44.23 to a high of 73.09. The Real Estate industry median Operating Margin % is 13.22. Arabian Centres Co's value of 68.04% is 414.7% above this industry median. Based on the distribution chart, Arabian Centres Co ranks #131 out of 1748 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Arabian Centres Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arabian Centres Co's Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, Arabian Centres Co ranks #131 out of 1748 companies for Operating Margin %. This places Arabian Centres Co in the top 8% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 13.22. Arabian Centres Co's value of 68.04% is 414.7% above this benchmark. Historically, Arabian Centres Co's own Operating Margin % has ranged from 44.23 to 73.09 over the past decade. While the company's 10-year median is 60.40 vs. the industry median of 13.22, Arabian Centres 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. Arabian Centres Co's current Operating Margin % of 68.04% is 414.7% 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 Arabian Centres 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. Arabian Centres Co's current Operating Margin % is 68.04%, which is 13% above median its own 10-year median of 60.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Centres Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Centres Co (SAU:4321) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼21.02, compared to a current price of ﷼17.12 — trading 18.6% below its estimated fair value. The current Operating Margin % is 68.04%, which is 13% above median its 10-year median of 60.40 and 414.7% above the Real Estate industry median of 13.22. Arabian Centres Co's overall GF Score™ is 83/100 with 7 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 Arabian Centres Co (SAU:4321), the current Operating Margin % is 68.04% 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 Arabian Centres Co (SAU:4321) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Centres Co stock appears to be undervalued.
The current stock price of ﷼17.12 is trading 18.6% below its estimated GF Value™ of ﷼21.02.
GuruFocus considers Arabian Centres Co to be Modestly Undervalued.
Key valuation signals for SAU:4321:
Operating Margin %: 68.04% (13% above median its 10-year median of 60.40)
GF Value™: ﷼21.02 vs. price of ﷼17.12 (18.6% below fair value)
Industry Position: 414.7% above the Real Estate median (#131 of 1748)
No single metric tells the full story. See the SAU:4321 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Centres Co and its subsidiaries' principal business objectives are to purchase land, build, develop, and invest in buildings, and sell or lease buildings, including the construction of commercial buildings with demolition, repair, excavation, and maintenance works. The Group also maintains and operates commercial centres, tourist resorts, hotels and restaurants, and manages exhibitions, compounds, and hospitals. Its licensed activities include construction and renovation of residential and non-residential buildings, buying and selling land and real estate, leasing and property management, real estate development using modern construction methods, and real estate marketing, advertising, and maintenance service activities for buildings.
83GF Score
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