Operating Margin - Leejam Sports Company SJSC (SAU:1830)

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Price: 199.4 SAR 0.1%

Market Cap: 6.8B SAR

26.3%

Current

31%

Average

7.3%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

26.3%

Operating Profit

419.2m

Revenue

1.6B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
SA		Leejam Sports Company SJSC SAU:1830	6.8B SAR	26%
JP		Oriental Land Co Ltd TSE:4661	4.7T JPY	25%
US		Planet Fitness Inc NYSE:PLNT	9.3B USD	29%
US	L	Life Time Group Holdings Inc NYSE:LTH	5.8B USD	15%
US		Vail Resorts Inc NYSE:MTN	5.5B USD	18%
CN	S	Songcheng Performance Development Co Ltd SZSE:300144	21.8B CNY	47%
CN	S	Shenzhen Overseas Chinese Town Co Ltd SZSE:000069	21.5B CNY	-8%
US	S	Six Flags Entertainment Corp F:6FE	2.6B EUR	20%
BR		Smartfit Escola de Ginastica e Danca SA BOVESPA:SMFT3	13.9B BRL	23%
NL		Basic Fit NV AEX:BFIT	1.9B EUR	10%
US		Bowlero Corp NYSE:BOWL	1.9B USD	12%

Leejam Sports Company SJSC
Glance View

Market Cap

6.8B SAR

Industry

Hotels, Restaurants & Leisure

In the bustling heart of Saudi Arabia, Leejam Sports Company SJSC stands as a testament to the country’s rapidly evolving health and fitness sector. Established with a vision to transform the lifestyle of its community, Leejam has adeptly positioned itself as the leading fitness and wellness company in the region. Operating under its flagship brand "Fitness Time," the company has strategically expanded its presence to over a hundred locations, offering state-of-the-art facilities that cater to a diverse clientele. From sprawling gym complexes equipped with cutting-edge fitness technology to specialized areas designed for women and youth, Leejam’s facilities are a hub for individuals seeking to enhance their physical well-being. The company’s operational model thrives on membership subscriptions, allowing it to maintain a steady revenue stream while continuously investing in facility upgrades and expansion initiatives. Leejam Sports Company SJSC crafts its revenue mosaic not just from gym memberships, but also from a host of ancillary services that complement the modern fitness journey. By incorporating personal training sessions, fitness classes, and retail offerings such as sports apparel and nutritional products, Leejam deepens customer engagement while enhancing its profitability margins. Each facility functions as a multifaceted wellness center where trained professionals guide members through personalized fitness regimes, yoga sessions, and high-intensity interval training, all tailored to meet the specific needs of its patrons. This robust business model, coupled with strategic partnerships and event sponsorships, secures Leejam’s position at the forefront of the fitness industry in Saudi Arabia and sets a benchmark for health-centric business operations in the Middle East.

View Leejam Sports Company SJSC Analysis

Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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Leejam Sports Company SJSC
SAU:1830