Operating Margin

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Price: 4.22 AUD -0.94%

Market Cap: 1.1B AUD

12.2%

Improving

by 1.6%

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

12.2%

Operating Income

AU$67.2m

Revenue

AU$550.2m

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

12.2%

Operating Income

AU$67.2m

Revenue

AU$550.2m

Peer Comparison

Country		Company	Market Cap	Operating Margin
AU	E	E&A Ltd ASX:TEA	1B AUD	Loading...
FR		Vinci SA PAR:DG	64.2B EUR	Loading...
US		Quanta Services Inc NYSE:PWR	70.6B USD	Loading...
IN		Larsen & Toubro Ltd NSE:LT	5.2T INR	Loading...
IN		Larsen and Toubro Ltd F:LTO	48.4B EUR	Loading...
ES		Ferrovial SA MAD:FER	40.8B EUR	Loading...
NL		Ferrovial SE AEX:FER	40.8B EUR	Loading...
US		Comfort Systems USA Inc NYSE:FIX	40.5B USD	Loading...
US		EMCOR Group Inc NYSE:EME	31.7B USD	Loading...
DE	H	Hochtief AG XETRA:HOT	26.4B EUR	Loading...
CN	C	China State Construction Engineering Corp Ltd SSE:601668	211.1B 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

E&A Ltd
Glance View

Economic Moat

Narrow

Market Cap

1.1B AUD

Industry

Construction

E&A Ltd is a AU-based company operating in Construction & Engineering industry. The company is headquartered in Adelaide, South Australia. E&A Limited is an investment company. The principal activities of the Company consist of provision of engineering and maintenance services to the oil and gas, mining and resources, water, defense, and power and energy industries, and financial advisory services to the corporate sector. Its segments include Investment & Corporate Advisory, which provides a range of corporate advisory services; Water & Fluid Solutions, which provides geomembrane liners and floating covers, and supplies and designs stainless steel drainage and pressure systems, among others; Heavy Mechanical and Electrical Engineering, which operates pipe fabrication and installation business, and provides a range of steel fabrication and structural engineering services, and electrical engineering consultancy and project management services, among others, and Maintenance Engineering & Plant Construction, which provides electrical and instrumentation services, and supplies breakdown and repair services, among others.

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TEA Intrinsic Value

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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.

E&A Ltd
ASX:TEA

Peer Comparison

Market Distribution

Other Profitability Ratios

E&A Ltd
Glance View

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E&A Ltd ASX:TEA