Operating Margin

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Price: 416.61 MXN 0.39% Market Closed

Market Cap: 26.9B MXN

19.7%

Improving

by 0.1%

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

19.7%

Operating Income

$5B

Revenue

$25.2B

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

19.7%

Operating Income

Mex$5B

Revenue

$25.2B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Kraft Heinz Co NASDAQ:KHC	28.3B USD	Loading...
JP	G	Goyo Foods Industry Co Ltd TSE:2230	53.2T JPY	Loading...
CH		Nestle SA SIX:NESN	187B CHF	Loading...
US		Mondelez International Inc NASDAQ:MDLZ	75B USD	Loading...
FR		Danone SA PAR:BN	47.3B EUR	Loading...
ZA	T	Tiger Brands Ltd JSE:TBS	53.3B Zac	Loading...
US		Hershey Co NYSE:HSY	40.7B USD	Loading...
CN		Muyuan Foods Co Ltd SZSE:002714	255.9B CNY	Loading...
ZA	A	Avi Ltd JSE:AVI	35.6B Zac	Loading...
CH		Chocoladefabriken Lindt & Spruengli AG SIX:LISN	26B CHF	Loading...
CN		Foshan Haitian Flavouring and Food Co Ltd SSE:603288	215.8B CNY	Loading...

Market Distribution

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

Other Profitability Ratios

Kraft Heinz Co
Glance View

Economic Moat

None

Market Cap

26.9B MXN

Industry

Food Products

In the bustling aisles of global supermarkets, Kraft Heinz Co. stands as a titan of the food and beverage industry, embodying a rich legacy intertwined with the daily lives of millions. Born from the monumental merger of Kraft Foods Group and H.J. Heinz Co. in 2015, this colossal entity forged a formidable portfolio of brands that have become household staples. Think of Heinz's signature ketchup and Kraft's renowned macaroni and cheese—the heartwarming, reliable comfort foods that often find their way to dining tables worldwide. The business operates under a strategic model driven by scale and efficiency, leveraging its expansive distribution network and significant purchasing power to maintain a competitive edge in the market. Each product that bears the Kraft Heinz name embodies decades of culinary expertise and innovation, seamlessly integrating the timeless appeal of classic brands with contemporary consumer trends. Kraft Heinz's financial prowess lies in its ability to deliver consistent revenue streams through its vast lineup of products spread across various categories including condiments, sauces, cheese, and ready-to-serve meals. The company's revenue engine is fueled by a balanced mix of innovation and heritage, enabling it to not only safeguard the vitality of iconic brands but also introduce new products that cater to evolving tastes. By emphasizing cost management and operational efficiencies across its supply chain, Kraft Heinz ensures its ability to invest in marketing and growth initiatives that enhance brand visibility and consumer loyalty. Additionally, international expansion and strategic acquisitions underpin the company's growth ambitions, allowing it to tap into emerging markets and diversify its revenue base beyond the mature North American sector. In essence, Kraft Heinz thrives on the art of blending tradition with modernity, ensuring its brands remain resonant in the ever-changing landscape of the global food industry.

View KHC Analysis

KHC Intrinsic Value

Undervaluation 41%

Intrinsic Value

Price

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.

Kraft Heinz Co
BMV:KHC

Peer Comparison

Market Distribution

Other Profitability Ratios

Kraft Heinz Co
Glance View

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Kraft Heinz Co BMV:KHC