Arabian Internet and Communications Services Co (SAU:7202) Operating Margin %: 13.29% (As of Mar. 2026) — Near Median

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SAU:7202 Arabian Internet and Communications Services Co SAU:7202
94 GF Score
Price ﷼203.10
GF Value ﷼331.99
Valuation Significantly Undervalued
! 2 Warning Signs
View Full Analysis

What is Arabian Internet and Communications Services Co Operating Margin %?

Arabian Internet and Communications Services Co SAU:7202 +0.05% 94 Operating Margin % is 13.29% as of Mar. 2026, which is 2% above its 10-year median of 13.03. GuruFocus rates SAU:7202 with a GF Score™ of 94/100 and a GF Value™ of ﷼331.99 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 362 Telecommunication Services companies, Arabian Internet and Communications Services Co ranks better than 59.39% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Arabian Internet and Communications Services Co's Operating Income for the three months ended in Mar. 2026 was ﷼399 Mil. Arabian Internet and Communications Services Co's Revenue for the three months ended in Mar. 2026 was ﷼3,002 Mil. Therefore, Arabian Internet and Communications Services Co's Operating Margin % for the quarter that ended in Mar. 2026 was 13.29%.

Good Sign:

Arabian Internet and Communications Services Co operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Arabian Internet and Communications Services Co's Operating Margin % or its related term are showing as below:

SAU:7202' s Operating Margin % Range Over the Past 10 Years
Min: 11.65   Med: 13.03   Max: 14.57
Current: 12.93


SAU:7202's Operating Margin % is ranked better than
59.39% of 362 companies
in the Telecommunication Services industry
Industry Median: 9.74 vs SAU:7202: 12.93

Arabian Internet and Communications Services Co's 5-Year Average Operating Margin % Growth Rate was 0.80% per year.

Arabian Internet and Communications Services Co's Operating Income for the three months ended in Mar. 2026 was ﷼399 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ﷼1,669 Mil.


Arabian Internet and Communications Services Co  (SAU:7202) 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 Nokia’s 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 Internet and Communications Services Co Operating Margin % Related Terms


Arabian Internet and Communications Services Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Arabian Internet and Communications Services 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 Internet and Communications Services Co Operating Margin % Chart

Arabian Internet and Communications Services Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial 14.57 13.17 12.56 13.76 12.89

Arabian Internet and Communications Services Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.14 15.37 14.92 9.27 13.29

SAU:7202 vs TMUS, VZ, T: Operating Margin % Comparison

For the Telecom Services subindustry, Arabian Internet and Communications 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.


Arabian Internet and Communications Services Co Operating Margin % vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Arabian Internet and Communications Services Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Arabian Internet and Communications Services Co's Operating Margin % falls into.


SAU:7202
94GF Score
Arabian Internet and Communications Services Co SAU:7202
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arabian Internet and Communications 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.

Arabian Internet and Communications Services Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=1641.431 / 12730.189
=12.89 %

Arabian Internet and Communications Services Co's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=399.038 / 3002.477
=13.29 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 13.29% mean?
Arabian Internet and Communications Services Co (SAU:7202) has a Operating Margin % of 13.29% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Arabian Internet and Communications Services Co and its competitors. This is near median its historical median of 13.03. Over the past decade, Arabian Internet and Communications Services Co's Operating Margin % has ranged from 11.65 to 14.57. According to the industry distribution chart, Arabian Internet and Communications Services Co ranks #147 out of 362 companies in the Telecommunication Services industry, placing it in the top 40.6%.
Is Arabian Internet and Communications Services Co's Operating Margin % too high?
Arabian Internet and Communications Services Co's current Operating Margin % of 13.29% is near median its 10-year median of 13.03. Over the past 10 years, this metric has ranged from a low of 11.65 to a high of 14.57. The Telecommunication Services industry median Operating Margin % is 9.74. Arabian Internet and Communications Services Co's value of 13.29% is 36.4% above this industry median. Based on the distribution chart, Arabian Internet and Communications Services Co ranks #147 out of 362 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Arabian Internet and Communications Services Co has a GF Score™ of 94/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arabian Internet and Communications Services Co's Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Arabian Internet and Communications Services Co ranks #147 out of 362 companies for Operating Margin %. This puts Arabian Internet and Communications Services Co in the upper half of its industry. The industry median Operating Margin % is 9.74. Arabian Internet and Communications Services Co's value of 13.29% is 36.4% above this benchmark. Historically, Arabian Internet and Communications Services Co's own Operating Margin % has ranged from 11.65 to 14.57 over the past decade. While the company's 10-year median is 13.03 vs. the industry median of 9.74, Arabian Internet and Communications Services 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 Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.74, based on 362 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 Internet and Communications Services Co's current Operating Margin % of 13.29% is 36.4% 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 Arabian Internet and Communications Services Co and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Internet and Communications Services Co's current Operating Margin % is 13.29%, which is near median its own 10-year median of 13.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Internet and Communications Services Co stock overvalued right now?
Based on GuruFocus' analysis, Arabian Internet and Communications Services Co (SAU:7202) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼331.99, compared to a current price of ﷼203.10 — trading 38.8% below its estimated fair value. The current Operating Margin % is 13.29%, which is near median its 10-year median of 13.03 and 36.4% above the Telecommunication Services industry median of 9.74. Arabian Internet and Communications Services Co's overall GF Score™ is 94/100 with 2 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 Internet and Communications Services Co (SAU:7202), the current Operating Margin % is 13.29% 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 Internet and Communications Services Co (SAU:7202) Overvalued in 2026?

Based on GuruFocus' analysis, Arabian Internet and Communications Services Co stock appears to be undervalued. The current stock price of ﷼203.10 is trading 38.8% below its estimated GF Value™ of ﷼331.99. GuruFocus considers Arabian Internet and Communications Services Co to be Significantly Undervalued.

Key valuation signals for SAU:7202:

  • Operating Margin %: 13.29% (near median its 10-year median of 13.03)
  • GF Value™: ﷼331.99 vs. price of ﷼203.10 (38.8% below fair value)
  • GF Score™: 94/100 with 2 warning signs
  • Industry Position: 36.4% above the Telecommunication Services median (#147 of 362)

No single metric tells the full story. See the SAU:7202 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arabian Internet and Communications Services Co Business Description

Address Olaya Street, P.O. Box 50, Riyadh, SAU, 11372
Arabian Internet and Communications Services Co is an information and communication company. The company operates in three segments namely, Solutions by STC, GIZA Group, and Contact Center Company. The company's revenue mainly comprises of Solutions by STC segment. The services provided by the company are Core ICT Services, IT Managed and Operational Services, and Digital Services.
94GF Score

Get the complete analysis for SAU:7202

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

﷼203.10
Price
﷼331.99
GF Value