Knowledge Tower Trading Co (SAU:9551) Operating Margin %: 7.45% (As of Mar. 2026) — 59% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

SAU:9551 Knowledge Tower Trading Co SAU:9551
79 GF Score
Price ﷼5.89
GF Value ﷼6.85
Valuation Modestly Undervalued
! 6 Warning Signs
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What is Knowledge Tower Trading Co Operating Margin %?

Knowledge Tower Trading Co SAU:9551 79 Operating Margin % is 7.45% as of Mar. 2026, which is 59% below its 10-year median of 18.32. GuruFocus rates SAU:9551 with a GF Score™ of 79/100 and a GF Value™ of ﷼6.85 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,132 Retail - Cyclical companies, Knowledge Tower Trading Co ranks better than 84.45% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Knowledge Tower Trading Co's Operating Income for the six months ended in Mar. 2026 was ﷼0.67 Mil. Knowledge Tower Trading Co's Revenue for the six months ended in Mar. 2026 was ﷼9.00 Mil. Therefore, Knowledge Tower Trading Co's Operating Margin % for the quarter that ended in Mar. 2026 was 7.45%.

Warning Sign:

Knowledge Tower Trading Co operating margin has been in a 5-year decline. The average rate of decline per year is -14.3%.

The historical rank and industry rank for Knowledge Tower Trading Co's Operating Margin % or its related term are showing as below:

SAU:9551' s Operating Margin % Range Over the Past 10 Years
Min: 12.28   Med: 18.32   Max: 27.79
Current: 12.28


SAU:9551's Operating Margin % is ranked better than
84.45% of 1132 companies
in the Retail - Cyclical industry
Industry Median: 3.905 vs SAU:9551: 12.28

Knowledge Tower Trading Co's 5-Year Average Operating Margin % Growth Rate was -14.30% per year.

Knowledge Tower Trading Co's Operating Income for the six months ended in Mar. 2026 was ﷼0.67 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ﷼3.05 Mil.


Knowledge Tower Trading Co  (SAU:9551) 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.


Knowledge Tower Trading Co Operating Margin % Related Terms


Knowledge Tower Trading Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Knowledge Tower Trading 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.

Knowledge Tower Trading Co Operating Margin % Chart

Knowledge Tower Trading Co Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Operating Margin %
Get a 7-Day Free Trial 20.35 20.76 16.28 14.18 12.28

Knowledge Tower Trading Co Semi-Annual Data
Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only -1.13 18.18 7.82 15.02 7.45

SAU:9551 vs CASY, WSM, ULTA: Operating Margin % Comparison

For the Specialty Retail subindustry, Knowledge Tower Trading 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.


Knowledge Tower Trading Co Operating Margin % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Knowledge Tower Trading Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Knowledge Tower Trading Co's Operating Margin % falls into.


SAU:9551
79GF Score
Knowledge Tower Trading Co SAU:9551
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Knowledge Tower Trading 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.

Knowledge Tower Trading Co's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (A: Mar. 2026 ) / Revenue (A: Mar. 2026 )
=3.055 / 24.871
=12.28 %

Knowledge Tower Trading 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 )
=0.67 / 8.996
=7.45 %

* 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 7.45% mean?
Knowledge Tower Trading Co (SAU:9551) has a Operating Margin % of 7.45% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Knowledge Tower Trading Co and its competitors. This is 59% below median its historical median of 18.32. Over the past decade, Knowledge Tower Trading Co's Operating Margin % has ranged from 12.28 to 27.79. According to the industry distribution chart, Knowledge Tower Trading Co ranks #176 out of 1132 companies in the Retail - Cyclical industry, placing it in the top 15.5%.
Is Knowledge Tower Trading Co's Operating Margin % too high?
Knowledge Tower Trading Co's current Operating Margin % of 7.45% is 59% below median its 10-year median of 18.32. Over the past 10 years, this metric has ranged from a low of 12.28 to a high of 27.79. The Retail - Cyclical industry median Operating Margin % is 3.91. Knowledge Tower Trading Co's value of 7.45% is 90.8% above this industry median. Based on the distribution chart, Knowledge Tower Trading Co ranks #176 out of 1132 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Knowledge Tower Trading Co has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Knowledge Tower Trading Co's Operating Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Knowledge Tower Trading Co ranks #176 out of 1132 companies for Operating Margin %. This places Knowledge Tower Trading Co in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Knowledge Tower Trading Co's value of 7.45% is 90.8% above this benchmark. Historically, Knowledge Tower Trading Co's own Operating Margin % has ranged from 12.28 to 27.79 over the past decade. While the company's 10-year median is 18.32 vs. the industry median of 3.91, Knowledge Tower Trading 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,132 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. Knowledge Tower Trading Co's current Operating Margin % of 7.45% is 90.8% 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 Knowledge Tower Trading Co and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Knowledge Tower Trading Co's current Operating Margin % is 7.45%, which is 59% below median its own 10-year median of 18.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Knowledge Tower Trading Co stock overvalued right now?
Based on GuruFocus' analysis, Knowledge Tower Trading Co (SAU:9551) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼6.85, compared to a current price of ﷼5.89 — trading 14% below its estimated fair value. The current Operating Margin % is 7.45%, which is 59% below median its 10-year median of 18.32 and 90.8% above the Retail - Cyclical industry median of 3.91. Knowledge Tower Trading Co's overall GF Score™ is 79/100 with 6 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 Knowledge Tower Trading Co (SAU:9551), the current Operating Margin % is 7.45% 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 Knowledge Tower Trading Co (SAU:9551) Overvalued in 2026?

Based on GuruFocus' analysis, Knowledge Tower Trading Co stock appears to be undervalued. The current stock price of ﷼5.89 is trading 14% below its estimated GF Value™ of ﷼6.85. GuruFocus considers Knowledge Tower Trading Co to be Modestly Undervalued.

Key valuation signals for SAU:9551:

  • Operating Margin %: 7.45% (59% below median its 10-year median of 18.32)
  • GF Value™: ﷼6.85 vs. price of ﷼5.89 (14% below fair value)
  • GF Score™: 79/100 with 6 warning signs
  • Industry Position: 90.8% above the Retail - Cyclical median (#176 of 1132)

No single metric tells the full story. See the SAU:9551 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Knowledge Tower Trading Co Business Description

Address Ibn Yaqout Al-Hamawi Road, Al-Muraikbat District, Dammam, SAU, 7222 -32253
Knowledge Tower Trading Co is engaged in marketing and selling educational books for schools, universities, training institutes and government educational institutions. It develops educational programs for schools and provides electronic educational platforms, modern educational resources for training and designing their educational models.
79GF Score

Get the complete analysis for SAU:9551

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

﷼5.89
Price
﷼6.85
GF Value