Operating Margin

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Price: 31.4 SAR 5.55% Market Closed

Market Cap: ﷼6.4B

32.3%

Declining

by 2.4%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

32.3%

Operating Income

﷼450.5m

Revenue

﷼1.4B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

32.3%

Operating Income

﷼450.5m

Revenue

﷼1.4B

Peer Comparison

Country		Company	Market Cap	Operating Margin
SA		Yamama Cement Company SJSC SAU:3020	6.4B SAR	Loading...
IE	C	CRH PLC NYSE:CRH	82.6B USD	Loading...
CH		Holcim AG SIX:HOLN	43.2B CHF	Loading...
DE		HeidelbergCement AG XETRA:HEI	41.8B EUR	Loading...
IN		UltraTech Cement Ltd NSE:ULTRACEMCO	3.7T INR	Loading...
US		Vulcan Materials Co NYSE:VMC	39.2B USD	Loading...
US		Martin Marietta Materials Inc NYSE:MLM	39.1B USD	Loading...
DE	H	Heidelberg Materials AG XMUN:HEI	27.4B EUR	Loading...
US	A	Amrize AG SIX:AMRZ	22.8B CHF	Loading...
IN		Grasim Industries Ltd NSE:GRASIM	1.9T INR	Loading...
MX		Cemex SAB de CV NYSE:CX	18.9B USD	Loading...

Market Distribution

Min	-6 039.4%
30th Percentile	4.5%
Median	10.2%
70th Percentile	19.3%
Max	3 330.3%

Other Profitability Ratios

Yamama Cement Company SJSC
Glance View

Market Cap

6.4B SAR

Industry

Construction

Yamama Cement Company SJSC, a stalwart in Saudi Arabia's construction materials sector, unfolds its story against the backdrop of the kingdom's rapid infrastructural expansion. Established in 1961, the company carved its foundation amidst the sands of Riyadh, aligning its growth with the nation’s ambitious development plans. Yamama Cement crafts its reputation through the production and distribution of high-quality cement, a bedrock commodity crucial for various construction needs, ranging from residential housing to monumental infrastructure projects. With advanced production facilities bolstered by state-of-the-art technology, the company efficiently turns raw materials, primarily limestone, and clay, into cement clinker, which is then ground to produce diverse types of cement. This cycle of transformation not only ensures a steady flow of products to meet burgeoning domestic and regional demands but also fortifies Yamama’s position as a pivotal player in construction projects across the region. A key aspect of Yamama Cement’s operational ethos is its integration of sustainability practices within its business model. The company focuses on enhancing energy efficiency and reducing carbon emissions in its production processes, aligning itself with global environmental standards while catering to an industry that increasingly prioritizes sustainability. Revenue generation for Yamama Cement primarily stems from the sale of various cement products—which include ordinary Portland cement, sulfate-resistant cement, and pozzolanic cement—each catering to specific construction requirements, thus diversifying its offerings and clientele. Additionally, the company's strategic location near essential transportation routes amplifies its logistical capabilities, enabling it to transport its products efficiently throughout Saudi Arabia and neighboring markets. With its commitment to quality, innovation, and sustainability, Yamama Cement continues to drive forward, meeting the demands of a fast-evolving construction landscape.

View Yamama Cement Company SJSC Analysis

Intrinsic Value

Overvaluation 21%

Intrinsic Value

Price

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.

Yamama Cement Company SJSC
SAU:3020

Peer Comparison

Market Distribution

Other Profitability Ratios

Yamama Cement Company SJSC
Glance View

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Yamama Cement Company SJSC SAU:3020