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Al Rajhi BankSAU:1120 -1.68%77 Pretax Margin % is 70.67% as of Mar. 2026, which is 15% above its 10-year median of 61.42. GuruFocus rates SAU:1120 with a GF Score™ of 77/100 and a GF Value™ of ﷼79.83 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,527 Banks companies, Al Rajhi Bank ranks better than 97.45% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Al Rajhi Bank's Pre-Tax Income for the
three
months ended in Mar. 2026 was ﷼7,440 Mil. Al Rajhi Bank's Revenue for the
three
months ended in Mar. 2026 was ﷼10,528 Mil. Therefore, Al Rajhi Bank's pretax margin for the quarter that ended in Mar. 2026 was 70.67%.
The historical rank and industry rank for Al Rajhi Bank's Pretax Margin % or its related term are showing as below:
SAU:1120'
s Pretax Margin % Range Over the Past 10 Years
Min: 53.24 Med: 61.42 Max: 70.95
Current: 70.75
SAU:1120's Pretax Margin % is ranked better than 97.45% of 1527
companies
in the Banks industry
Industry Median: 34.65
vs SAU:1120: 70.75
Al Rajhi Bank (SAU:1120) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Al Rajhi Bank Pretax Margin % Related Terms
Al Rajhi Bank Pretax Margin % Historical Data
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The historical data trend for Al Rajhi Bank's Pretax 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.
For the Banks - Regional subindustry, Al Rajhi Bank's Pretax Margin %, along with its competitors' market caps and Pretax 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.
Al Rajhi Bank Pretax Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Al Rajhi Bank's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Al Rajhi Bank's Pretax Margin % falls into.
* 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.
Al Rajhi Bank (SAU:1120) has a Pretax Margin % of 70.67% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Al Rajhi Bank and its competitors. This is 15% above median its historical median of 61.42. Over the past decade, Al Rajhi Bank's Pretax Margin % has ranged from 53.24 to 70.95. According to the industry distribution chart, Al Rajhi Bank ranks #39 out of 1527 companies in the Banks industry, placing it in the top 2.6%.
Is Al Rajhi Bank's Pretax Margin % too high?
Al Rajhi Bank's current Pretax Margin % of 70.67% is 15% above median its 10-year median of 61.42. Over the past 10 years, this metric has ranged from a low of 53.24 to a high of 70.95. The Banks industry median Pretax Margin % is 34.65. Al Rajhi Bank's value of 70.67% is 104% above this industry median. Based on the distribution chart, Al Rajhi Bank ranks #39 out of 1527 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Al Rajhi Bank has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Al Rajhi Bank's Pretax Margin % compare to PNC?
According to the Banks industry distribution chart, Al Rajhi Bank ranks #39 out of 1527 companies for Pretax Margin %. This places Al Rajhi Bank in the top 3% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 34.65. Al Rajhi Bank's value of 70.67% is 104% above this benchmark. Historically, Al Rajhi Bank's own Pretax Margin % has ranged from 53.24 to 70.95 over the past decade. While the company's 10-year median is 61.42 vs. the industry median of 34.65, Al Rajhi Bank 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 Pretax Margin % for a Banks company?
The median Pretax Margin % among Banks companies is 34.65, based on 1,527 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Al Rajhi Bank's current Pretax Margin % of 70.67% is 104% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Al Rajhi Bank and its competitors. For the Banks industry, the median Pretax Margin % is 34.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al Rajhi Bank's current Pretax Margin % is 70.67%, which is 15% above median its own 10-year median of 61.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Rajhi Bank stock overvalued right now?
Based on GuruFocus' analysis, Al Rajhi Bank (SAU:1120) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼79.83, compared to a current price of ﷼64.45 — trading 19.3% below its estimated fair value. The current Pretax Margin % is 70.67%, which is 15% above median its 10-year median of 61.42 and 104% above the Banks industry median of 34.65. Al Rajhi Bank's overall GF Score™ is 77/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Al Rajhi Bank (SAU:1120), the current Pretax Margin % is 70.67% 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 Al Rajhi Bank (SAU:1120) Overvalued in 2026?
Based on GuruFocus' analysis, Al Rajhi Bank stock appears to be undervalued.
The current stock price of ﷼64.45 is trading 19.3% below its estimated GF Value™ of ﷼79.83.
GuruFocus considers Al Rajhi Bank to be Modestly Undervalued.
Key valuation signals for SAU:1120:
Pretax Margin %: 70.67% (15% above median its 10-year median of 61.42)
GF Value™: ﷼79.83 vs. price of ﷼64.45 (19.3% below fair value)
Industry Position: 104% above the Banks median (#39 of 1527)
No single metric tells the full story. See the SAU:1120 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al Rajhi Bank is an Islamic bank with a network of over 500 branches. Its segments include the Retail segment which includes accepting individual customer deposits, providing credit facilities, customer debit current accounts, fees from banking services, and remittance business; the Corporate segment which incorporates deposits of VIP, corporate customer deposits, credit facilities, and debit current accounts, Treasury segment through which it offers treasury services, Murabaha with SAMA and international Mutajara portfolio; and Investment services and brokerage and other that incorporates investments of individuals and corporate in mutual funds, local and international share trading services and investment portfolios.
77GF Score
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