Operating Margin

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Price: 13.19 AUD 13.32%

Market Cap: 5.9B AUD

-19.3%

Improving

by 49.2%

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

-19.3%

Operating Income

$-79m

Revenue

$274.6m

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

-19.3%

Operating Income

AU$-79m

Revenue

$274.6m

Peer Comparison

Country		Company	Market Cap	Operating Margin
AU		Paladin Energy Ltd ASX:PDN	5.6B AUD	Loading...
ID		Alamtri Resources Indonesia Tbk PT F:A640	142.3B EUR	Loading...
CN		China Shenhua Energy Co Ltd SSE:601088	811.6B CNY	Loading...
CA	C	Cameco Corp NYSE:CCJ	50.6B USD	Loading...
ID		Dian Swastatika Sentosa Tbk PT IDX:DSSA	786T IDR	Loading...
ZA	E	Exxaro Resources Ltd JSE:EXX	44.7B Zac	Loading...
ID		Bayan Resources Tbk PT IDX:BYAN	575T IDR	Loading...
CN		Shaanxi Coal Industry Co Ltd SSE:601225	215B CNY	Loading...
IN		Coal India Ltd NSE:COALINDIA	2.6T INR	Loading...
CN		China Coal Energy Co Ltd SSE:601898	176.9B CNY	Loading...
CN		Yankuang Energy Group Co Ltd SSE:600188	140.4B CNY	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

Paladin Energy Ltd
Glance View

Market Cap

5.9B AUD

Industry

Energy

Nestled in the heart of the global energy sector, Paladin Energy Ltd. has carved out its niche as a major player in the uranium mining industry. Originally an Australian-based company, Paladin has strategically positioned itself as a leading supplier during times when demand for clean energy and nuclear power generation is on the rise. The company's operations primarily revolve around the Langer Heinrich Mine in Namibia, a notable site producing uranium oxide, which forms the cornerstone of nuclear fuel for power plants around the world. Through a combination of sophisticated mining techniques and efficient production processes, Paladin is able to extract and process uranium at a competitive cost, thus establishing a stronghold in the marketplace characterized by high barriers to entry and limited competitors. The revenue Paladin Energy generates is intimately tied to the global demand for uranium, which can be influenced by factors such as geopolitical dynamics, environmental policies, and technological advancements in energy. Uranium trading markets can be volatile, but Paladin's approach involves signing long-term supply contracts with utility companies, which stabilizes income and hedges against market swings. This strategic maneuvering enables Paladin not only to sustain its operations but also to invest in exploration and development projects, ensuring a steady pipeline of resources for future extraction. With the nuclear energy narrative shifting toward sustainability, Paladin Energy finds itself not just as a supplier of fuel but as a pivotal participant in the global transition to greener energy solutions.

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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.

Paladin Energy Ltd
ASX:PDN

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Paladin Energy Ltd
Glance View

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Paladin Energy Ltd ASX:PDN