Operating Margin - Coupa Software Inc (F:2C0)

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Price: 76.38 EUR

Market Cap: 5.8B EUR

-33.3%

Current

-28%

Average

3.3%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

-33.3%

Operating Profit

-272.1m

Revenue

818.1m

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US	C	Coupa Software Inc F:2C0	5.8B EUR	-33%
IL		Sapiens International Corporation NV NASDAQ:SPNS	779.6B USD	14%
US		Ezenia! Inc OTC:EZEN	567B USD	-132%
US		Palantir Technologies Inc NYSE:PLTR	458.8B USD	22%
DE		SAP SE XETRA:SAP	243.6B EUR	27%
US		Salesforce Inc NYSE:CRM	244.8B USD	22%
US		Applovin Corp NASDAQ:APP	244.2B USD	60%
US		Intuit Inc NASDAQ:INTU	187B USD	27%
US		Adobe Inc NASDAQ:ADBE	149B USD	37%
US	N	NCR Corp LSE:0K45	137.3B USD	5%
US		Cadence Design Systems Inc NASDAQ:CDNS	85.8B USD	32%

Coupa Software Inc
Glance View

Economic Moat

None

Market Cap

5.8B EUR

Industry

Technology

Coupa Software Inc., a titan in the business spend management landscape, has orchestrated a symphony of innovation since its inception. At its core, Coupa operates through its comprehensive cloud platform, designed to streamline procurement, expense management, and invoicing for enterprises worldwide. Imagine a company executive, burdened by the tangled web of corporate spending, turning to Coupa for clarity and efficiency. Coupa’s platform offers them an intuitive interface that transforms chaotic spreadsheets into coherent, actionable insights. The software acts as a vigilant custodian, aligning every dollar spent with the company's strategic goals. Its suite of applications seamlessly integrates with existing IT infrastructure, reducing the friction often associated with new software adoption. This strategic alignment fosters an environment of trust, allowing businesses to reap the benefits of increased transparency and control over their financial flows. In the bustling marketplace of software solutions, Coupa distinguishes itself through its commitment to customer success and value realization. Revenue generation for Coupa primarily stems from subscription fees for its software-as-a-service (SaaS) offerings. Customers, ranging from burgeoning start-ups to large multinational corporations, subscribe to Coupa's platform to gain heightened visibility and control over their expenditures. As clients delve deeper into the ecosystem, Coupa amplifies its value proposition through robust analytics and artificial intelligence capabilities, which offer predictive insights and drive informed decision-making. This helps clients negotiate better deals and optimize spending, further embedding Coupa’s role as an indispensable partner in their financial strategy. In a world where efficient resource allocation is paramount, Coupa Software Inc. thrives by transforming spend management into a strategic advantage for its clientele.

View 2C0 Analysis

2C0 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.

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US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

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	Berkshire Hathaway Inc NYSE:BRK.A	745 600 USD -1.34%
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	Exxon Mobil Corp NYSE:XOM	116.69 USD 0.13%

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	Johnson & Johnson NYSE:JNJ	206.37 USD -0.93%
	Bank of America Corp NYSE:BAC	55.27 USD 1.86%
	Mastercard Inc NYSE:MA	572.23 USD 1.06%
	Salesforce Inc NYSE:CRM	259.91 USD 0.8%
	Abbvie Inc NYSE:ABBV	226.82 USD 1.8%
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	Monolithic Power Systems Inc NASDAQ:MPWR	937.11 USD 0.82%
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	Pro Medicus Ltd ASX:PME	222.04 AUD 0.91%
	Lundin Gold Inc TSX:LUG	113.69 CAD -1.01%

Coupa Software Inc
F:2C0