Operating Margin

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Price: 31.57 AUD 2.77%

Market Cap: 30.6B AUD

23.6%

No historical data

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

23.6%

Operating Income

$2.4B

Revenue

$7B

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

23.6%

Operating Income

AU$2.4B

Revenue

$7B

Peer Comparison

Country		Company	Market Cap	Operating Margin
AU		Woodside Petroleum Ltd ASX:WPL	30.6B AUD	Loading...
US		Conocophillips NYSE:COP	118B USD	Loading...
CN	C	CNOOC Ltd SSE:600938	810.8B CNY	Loading...
CA		Canadian Natural Resources Ltd TSX:CNQ	99.3B CAD	Loading...
PK	O	Oil and Gas Development Co Ltd LSE:37OC	59.6B USD	Loading...
US		EOG Resources Inc NYSE:EOG	57.8B USD	Loading...
US		Hess Corp NYSE:HES	46.1B USD	Loading...
US	P	Pioneer Natural Resources Co LSE:0KIX	46B USD	Loading...
US		Diamondback Energy Inc NASDAQ:FANG	42.7B USD	Loading...
US		EQT Corp NYSE:EQT	32.1B USD	Loading...
US	C	Continental Resources Inc F:C5L	25.8B 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

Woodside Petroleum Ltd
Glance View

Market Cap

30.6B AUD

Industry

Energy

Woodside Petroleum Ltd., Australia's largest independent natural gas producer, has its roots firmly planted in the fertile grounds of the Asia-Pacific energy sector. The company's journey began in 1954, and it has since grown into a cornerstone of the global liquefied natural gas (LNG) industry. Woodside's operational prowess is primarily centered on the North West Shelf Venture, one of the world’s largest LNG developments, where it adeptly harnesses state-of-the-art extraction and processing technologies to bring natural gas from beneath the ocean floor to energy markets worldwide. The company strategically positions itself by investing in long-term LNG projects like Pluto LNG and Scarborough, ensuring a steady supply of energy while cementing its status as a significant player in the global energy transition. Revenue generation for Woodside is intricately tied to the demand for energy, particularly in the form of LNG, which serves as a cleaner alternative to other fossil fuels like coal and oil. The company leverages its extensive infrastructure and resources to not only extract and process LNG but also to forge and maintain strong partnerships with key markets such as Japan, China, and South Korea. By selling LNG on long-term contracts, Woodside secures steady cash flows, providing a shield against the often-volatile energy market. Additionally, the company is gradually expanding its portfolio to include hydrogen and renewable energy projects, acknowledging the inevitable shift towards a greener future while maintaining the robustness of its existing operations. Thus, Woodside Petroleum stands as a testament to the evolving landscape of global energy, blending tradition with innovation in its quest for sustainability and growth.

View WPL Analysis

WPL 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.

Woodside Petroleum Ltd
ASX:WPL

Peer Comparison

Market Distribution

Other Profitability Ratios

Woodside Petroleum Ltd
Glance View

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Woodside Petroleum Ltd ASX:WPL