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Natural Gas Distribution CoSAU:9516 -0.43%67 Operating Margin % is 2.80% as of Dec. 2025, which is 12% below its 10-year median of 3.18. GuruFocus rates SAU:9516 with a GF Score™ of 67/100 and a GF Value™ of ﷼79.58 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 499 Utilities - Regulated companies, Natural Gas Distribution Co ranks worse than 84.77% on this metric.
Natural Gas Distribution Co operating margin has been in a 5-year decline. The average rate of decline per year is -11.9%.
The historical rank and industry rank for Natural Gas Distribution Co's Operating Margin % or its related term are showing as below:
SAU:9516'
s Operating Margin % Range Over the Past 10 Years
Min: 2.41 Med: 3.18 Max: 5.41
Current: 2.79
SAU:9516's Operating Margin % is ranked worse than 84.77% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.85
vs SAU:9516: 2.79
Natural Gas Distribution Co (SAU:9516) 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.
Natural Gas Distribution Co Operating Margin % Related Terms
Natural Gas Distribution 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.
Natural Gas Distribution Co Operating Margin % Chart
SAU:9516 vs ATO, NI, UGI: Operating Margin % Comparison
For the Utilities - Regulated Gas subindustry, Natural Gas Distribution 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.
Natural Gas Distribution Co Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Natural Gas Distribution Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Natural Gas Distribution Co's Operating Margin % falls into.
Natural Gas Distribution 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.
Natural Gas Distribution 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.
Natural Gas Distribution Co (SAU:9516) has a Operating Margin % of 2.80% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Natural Gas Distribution Co and its competitors. This is 12% below median its historical median of 3.18. Over the past decade, Natural Gas Distribution Co's Operating Margin % has ranged from 2.41 to 5.41. According to the industry distribution chart, Natural Gas Distribution Co ranks #423 out of 499 companies in the Utilities - Regulated industry, placing it in the top 84.8%.
Is Natural Gas Distribution Co's Operating Margin % too high?
Natural Gas Distribution Co's current Operating Margin % of 2.80% is 12% below median its 10-year median of 3.18. Over the past 10 years, this metric has ranged from a low of 2.41 to a high of 5.41. The Utilities - Regulated industry median Operating Margin % is 14.85. Natural Gas Distribution Co's value of 2.80% is 81.1% below this industry median. Based on the distribution chart, Natural Gas Distribution Co ranks #423 out of 499 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, Natural Gas Distribution Co has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Natural Gas Distribution Co's Operating Margin % compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Natural Gas Distribution Co ranks #423 out of 499 companies for Operating Margin %. This places Natural Gas Distribution Co in the lower half of its industry. The industry median Operating Margin % is 14.85. Natural Gas Distribution Co's value of 2.80% is 81.1% below this benchmark. Historically, Natural Gas Distribution Co's own Operating Margin % has ranged from 2.41 to 5.41 over the past decade. While the company's 10-year median is 3.18 vs. the industry median of 14.85, Natural Gas Distribution Co 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 an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.85, based on 499 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. Natural Gas Distribution Co's current Operating Margin % of 2.80% is 81.1% 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 Natural Gas Distribution Co and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natural Gas Distribution Co's current Operating Margin % is 2.80%, which is 12% below median its own 10-year median of 3.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natural Gas Distribution Co stock overvalued right now?
Based on GuruFocus' analysis, Natural Gas Distribution Co (SAU:9516) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼79.58, compared to a current price of ﷼23.40 — trading 70.6% below its estimated fair value. The current Operating Margin % is 2.80%, which is 12% below median its 10-year median of 3.18 and 81.1% below the Utilities - Regulated industry median of 14.85. Natural Gas Distribution Co's overall GF Score™ is 67/100 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 Natural Gas Distribution Co (SAU:9516), the current Operating Margin % is 2.80% 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 Natural Gas Distribution Co (SAU:9516) Overvalued in 2026?
Based on GuruFocus' analysis, Natural Gas Distribution Co stock appears to be undervalued.
The current stock price of ﷼23.40 is trading 70.6% below its estimated GF Value™ of ﷼79.58.
GuruFocus considers Natural Gas Distribution Co to be Significantly Undervalued.
Key valuation signals for SAU:9516:
Operating Margin %: 2.80% (12% below median its 10-year median of 3.18)
GF Value™: ﷼79.58 vs. price of ﷼23.40 (70.6% below fair value)
Industry Position: 81.1% below the Utilities - Regulated median (#423 of 499)
No single metric tells the full story. See the SAU:9516 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natural Gas Distribution Co is engaged in the operation and maintenance of natural gas networks in the second industrial city and industrial cities in the Kingdom. The company's business is to supply the factories located in the second industrial city in Riyadh. It is supplied with natural gas from Saudi Aramco through a main pipeline.
67GF 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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