Operating Margin

Watchlist Manager

Watchlist

Price: 1 379.3 MXN Market Closed

Market Cap: Mex$206.8B

2.8%

Declining

by 1.1%

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

2.8%

Operating Income

$1.7B

Revenue

$60.1B

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

2.8%

Operating Income

Mex$1.7B

Revenue

$60.1B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Bunge Ltd NYSE:BG	21.8B USD	Loading...
US	A	Archer-Daniels-Midland Co XETRA:ADM	27.6B EUR	Loading...
SG		Wilmar International Ltd SGX:F34	20.2B SGD	Loading...
CN		Tongwei Co Ltd SSE:600438	91.6B CNY	Loading...
MY	S	Sime Darby Plantation Bhd KLSE:SIMEPLT	39.1B MYR	Loading...
US		Ingredion Inc NYSE:INGR	7.4B USD	Loading...
US		Darling Ingredients Inc NYSE:DAR	6.7B USD	Loading...
MY		IOI Corporation Bhd KLSE:IOICORP	25.1B MYR	Loading...
CN		New Hope Liuhe Co Ltd SZSE:000876	39.4B CNY	Loading...
MY	K	Kuala Lumpur Kepong Bhd KLSE:KLK	22.4B MYR	Loading...
MY	U	United Plantations Bhd KLSE:UTDPLT	19.1B MYR	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Bunge Ltd
Glance View

Economic Moat

None

Market Cap

206.8B MXN

Industry

Food Products

Bunge Ltd., a global agribusiness and food company, weaves its narrative from the roots up, beginning with the essential task of sourcing and processing agricultural commodities. Founded in 1818, Bunge has transformed into a linchpin of the global food supply chain, dealing in grains and oilseeds that are the foundation of countless products. Operating across nearly 40 countries, the company has established a formidable infrastructure to connect farmers, who produce the raw materials, with consumers who rely on the finished products. The business thrives on its ability to manage complex logistics, vast networks of grain silos, and cutting-edge processing facilities that crush oilseeds into meal for animal feed and edible oils for cooking. The heart of Bunge’s profitability lies in its integrated operations that capitalize on various stages of the agricultural supply chain to extract value. By leveraging its extensive asset base and trading acumen, Bunge adeptly navigates the volatile world of commodity markets, managing risks and optimizing returns. Revenue streams flow from processing activities, where soybeans, canola, and other seeds are transformed into valuable end products. Moreover, Bunge’s merchandising capability, which involves buying, selling, and storing agricultural commodities, turns market fluctuations into opportunities. This relentless focus on efficiency and strategic positioning up and down the supply chain has enabled Bunge to maintain a pivotal role in feeding the world, all while delivering robust returns to its stakeholders.

View BG Analysis

BG Intrinsic Value

Show

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.

Bunge Ltd
BMV:BG

Peer Comparison

Market Distribution

Other Profitability Ratios

Bunge Ltd
Glance View

See Also

Company

Help

Tools

Stocks

52 Week Range	N/A N/A
Price Target

Bunge Ltd BMV:BG