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Alahli REIT Fund 1SAU:4338 +0.62%72 Operating Margin % is 34.87% as of Dec. 2025, which is 23% below its 10-year median of 45.52. GuruFocus rates SAU:4338 with a GF Score™ of 72/100 and a GF Value™ of ﷼8.34 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 745 REITs companies, Alahli REIT Fund 1 ranks worse than 70.34% on this metric.
Alahli REIT Fund 1 (SAU:4338) 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.
Alahli REIT Fund 1 Operating Margin % Related Terms
Alahli REIT Fund 1 Operating Margin % Historical Data
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The historical data trend for Alahli REIT Fund 1'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.
SAU:4338 vs VICI, WPC: Operating Margin % Comparison
For the REIT - Diversified subindustry, Alahli REIT Fund 1'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.
Alahli REIT Fund 1 Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Alahli REIT Fund 1's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Alahli REIT Fund 1'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.
Alahli REIT Fund 1'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.
Alahli REIT Fund 1 (SAU:4338) has a Operating Margin % of 34.87% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Alahli REIT Fund 1 and its competitors. This is 23% below median its historical median of 45.52. Over the past decade, Alahli REIT Fund 1's Operating Margin % has ranged from 36.10 to 52.78. According to the industry distribution chart, Alahli REIT Fund 1 ranks #524 out of 745 companies in the REITs industry, placing it in the top 70.3%.
Is Alahli REIT Fund 1's Operating Margin % too high?
Alahli REIT Fund 1's current Operating Margin % of 34.87% is 23% below median its 10-year median of 45.52. Over the past 10 years, this metric has ranged from a low of 36.10 to a high of 52.78. The REITs industry median Operating Margin % is 52.73. Alahli REIT Fund 1's value of 34.87% is 33.9% below this industry median. Based on the distribution chart, Alahli REIT Fund 1 ranks #524 out of 745 companies in the REITs industry, which is below the industry midpoint. Overall, Alahli REIT Fund 1 has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alahli REIT Fund 1's Operating Margin % compare to VICI and WPC?
According to the REITs industry distribution chart, Alahli REIT Fund 1 ranks #524 out of 745 companies for Operating Margin %. This places Alahli REIT Fund 1 in the lower half of its industry. The industry median Operating Margin % is 52.73. Alahli REIT Fund 1's value of 34.87% is 33.9% below this benchmark. Historically, Alahli REIT Fund 1's own Operating Margin % has ranged from 36.10 to 52.78 over the past decade. While the company's 10-year median is 45.52 vs. the industry median of 52.73, Alahli REIT Fund 1 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 REITs company?
The median Operating Margin % among REITs companies is 52.73, based on 745 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. Alahli REIT Fund 1's current Operating Margin % of 34.87% is 33.9% 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 Alahli REIT Fund 1 and its competitors. For the REITs industry, the median Operating Margin % is 52.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alahli REIT Fund 1's current Operating Margin % is 34.87%, which is 23% below median its own 10-year median of 45.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alahli REIT Fund 1 stock overvalued right now?
Based on GuruFocus' analysis, Alahli REIT Fund 1 (SAU:4338) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼8.34, compared to a current price of ﷼6.47 — trading 22.4% below its estimated fair value. The current Operating Margin % is 34.87%, which is 23% below median its 10-year median of 45.52 and 33.9% below the REITs industry median of 52.73. Alahli REIT Fund 1's overall GF Score™ is 72/100 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 Alahli REIT Fund 1 (SAU:4338), the current Operating Margin % is 34.87% as of Dec. 2025. 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 Alahli REIT Fund 1 (SAU:4338) Overvalued in 2026?
Based on GuruFocus' analysis, Alahli REIT Fund 1 stock appears to be undervalued.
The current stock price of ﷼6.47 is trading 22.4% below its estimated GF Value™ of ﷼8.34.
GuruFocus considers Alahli REIT Fund 1 to be Modestly Undervalued.
Key valuation signals for SAU:4338:
Operating Margin %: 34.87% (23% below median its 10-year median of 45.52)
GF Value™: ﷼8.34 vs. price of ﷼6.47 (22.4% below fair value)
Industry Position: 33.9% below the REITs median (#524 of 745)
No single metric tells the full story. See the SAU:4338 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alahli REIT Fund 1 invests in income-producing properties. Its objective is to provide periodic rental income to Unitholders through investing in developed income-generating properties and to potentially provide capital growth by developing and/or expanding and/or selling assets. The Fund invests mainly in developed income-generating real estate assets and may invest part of its assets and cash surplus in Murabaha transactions and short-term deposits in Saudi Riyals with banks that are licensed by the Saudi Central Bank (SAMA) and operate in Saudi Arabia. The Fund may also invest in public money market funds approved by CMA.
72GF 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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