Operating Margin

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Price: 23.35 AUD Market Closed

Market Cap: AU$20.8B

17.7%

Declining

by 0.7%

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

17.7%

Operating Income

$1.2B

Revenue

$4.5B

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

17.7%

Operating Income

AU$1.2B

Revenue

$4.5B

Peer Comparison

Country		Company	Market Cap	Operating Margin
AU		Newcrest Mining Ltd ASX:NCM	20.8B AUD	Loading...
RU	P	Polyus PJSC LSE:PLZL	70.4T USD	Loading...
CN		Zijin Mining Group Co Ltd SSE:601899	1.1T CNY	Loading...
US		Newmont Corporation NYSE:NEM	135.7B USD	Loading...
AU	G	Greatland Gold PLC ASX:GGP	184.3B AUD	Loading...
CA		Agnico Eagle Mines Ltd TSX:AEM	147B CAD	Loading...
CA		Barrick Gold Corp TSX:ABX	116.7B CAD	Loading...
CA		Barrick Mining Corp F:ABR0	71.6B EUR	Loading...
HK	Z	Zijin Gold International Co Ltd HKEX:2259	540B HKD	Loading...
CA		Wheaton Precious Metals Corp TSX:WPM	90.4B CAD	Loading...
UK		Anglogold Ashanti PLC F:HT3	44.6B 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

Newcrest Mining Ltd
Glance View

Economic Moat

None

Market Cap

20.8B AUD

Industry

Metals & Mining

In the rugged terrains of the mining world, Newcrest Mining Ltd stands as a formidable figure, shaped by decades of digging beneath the earth's crust. Emerging as one of the leading gold mining companies, it has honed its operations primarily across Australia, but also in other mineral-rich corners of the globe such as Papua New Guinea and Canada. At its core, Newcrest is engaged in the exploration, development, mining, and sale of gold and gold-copper concentrates. The company essentially transforms the raw potential of untouched land into tangible wealth through a series of finely-tuned processes. It combines state-of-the-art technology and traditional geology to locate and extract mineral riches, churning the deep-seated ores into the gleaming bars of gold that define its success. Newcrest's business model thrives on the delicate balance between production efficiency and exploration ambition. The company generates revenue by extracting precious metals and focusing on low-cost production through economically robust reserves, which means it is not just about digging gold but digging it profitably. This approach is supported by a strong commitment to sustainability, including environmental stewardship and community engagement, which are integral to its long-term profitability and operational stability. Through strategic partnerships and investments in technology and innovation, Newcrest seeks to extend its reach deeper and wider, ensuring that the gold extracted is done so with minimal environmental impact while maximizing financial returns, positioning itself as a responsible leader in the mining industry.

View NCM Analysis

NCM 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.

Newcrest Mining Ltd
ASX:NCM

Peer Comparison

Market Distribution

Other Profitability Ratios

Newcrest Mining Ltd
Glance View

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Newcrest Mining Ltd ASX:NCM