Operating Margin

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Price: 29.02 AUD -4.32% Market Closed

Market Cap: AU$6.9B

0.5%

Declining

by 1.4%

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

0.5%

Operating Income

AU$168m

Revenue

AU$31.9B

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

0.5%

Operating Income

AU$168m

Revenue

AU$31.9B

Peer Comparison

Country		Company	Market Cap	Operating Margin
AU		Ampol Ltd ASX:ALD	7B AUD	Loading...
JP		Fuji Oil Co Ltd F:ACK	77.2T EUR	Loading...
IN		Reliance Industries Ltd NSE:RELIANCE	18.9T INR	Loading...
US		Phillips 66 NYSE:PSX	57B USD	Loading...
US		Valero Energy Corp NYSE:VLO	56B USD	Loading...
US		Marathon Petroleum Corp NYSE:MPC	53B USD	Loading...
PL		Polski Koncern Naftowy Orlen SA WSE:PKN	121.8B PLN	Loading...
PL	O	Orlen SA PSE:PKN	698.9B CZK	Loading...
IN		Indian Oil Corporation Ltd NSE:IOC	2.2T INR	Loading...
JP		ENEOS Holdings Inc TSE:5020	3.3T JPY	Loading...
FI		Neste Oyj OMXH:NESTE	16.4B EUR	Loading...

Market Distribution

Min	-14 949 200%
30th Percentile	-526.4%
Median	-25.2%
70th Percentile	6.1%
Max	145 596.9%

Other Profitability Ratios

Ampol Ltd
Glance View

Economic Moat

None

Market Cap

6.9B AUD

Industry

Energy

Ampol Ltd, a stalwart in the energy sector, hails from Australia with roots tracing back to 1936, painting a story of resilience and adaptation in a rapidly shifting industry landscape. Originally known for its dominance in the fuel supply chain, Ampol carved out its presence by leveraging every aspect of the oil and gas spectrum—from refining to retail. The transformation phase came when Ampol embraced the opportunity to scale significantly by merging with Caltex Australia, providing it a reinforced platform to optimize its integrated value chain. The name "Ampol" was proudly reinstated in 2020, symbolizing a renewed commitment to its Australian heritage while also marking its resolve to blend tradition with innovation. At its core, Ampol commands a vast network of service stations across the region, a testimony to its robust infrastructure, which serves as a pivotal channel for direct consumer engagement and a steady revenue stream. The company's business model thrives on its adeptness at balancing the intricate dance between refining operations and retail distribution. Ampol operates one of the few remaining refineries in Australia, producing a significant portion of the fuels it supplies, guaranteeing control over quality and inventory. This vertically integrated approach ensures that Ampol remains flexible and responsive to market demands. Additionally, Ampol has ventured into expanding its product portfolio, catering not just to standard fuel consumers but also engaging in the sale of lubricants and other petrochemical products. Their commercial division supplements this by providing tailored energy solutions for industries, like transport and mining, thus diversifying its income sources. As the world nudges toward sustainable energy, Ampol is strategically positioning itself by investing in future energy initiatives, signaling its intent to evolve alongside global energy transitions.

View ALD Analysis

ALD Intrinsic Value

Undervaluation 45%

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.

Ampol Ltd
ASX:ALD

Peer Comparison

Market Distribution

Other Profitability Ratios

Ampol Ltd
Glance View

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Ampol Ltd ASX:ALD