Operating Margin - Welbilt Inc (F:6M6)

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Price: 23.8 EUR 0.85%

Market Cap: 3.4B EUR

12.7%

Current

12%

Average

6.5%

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

12.7%

Operating Profit

198.4m

Revenue

1.6B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US	W	Welbilt Inc F:6M6	3.4B EUR	13%
JP	I	Ishii Iron Works Co Ltd TSE:6362	304.2T JPY	13%
US		Parker-Hannifin Corp NYSE:PH	110.6B USD	21%
SE		Atlas Copco AB STO:ATCO A	799.8B SEK	21%
JP		Mitsubishi Heavy Industries Ltd TSE:7011	13.1T JPY	8%
US		Barnes Group Inc NYSE:B	75.5B USD	45%
US		Illinois Tool Works Inc NYSE:ITW	72.6B USD	26%
SE		Sandvik AB STO:SAND	370.4B SEK	17%
CH		Schindler Holding AG SIX:SCHP	31.7B CHF	12%
FI	K	Kone Oyj OMXH:KNEBV	31.2B EUR	11%
JP		Fanuc Corp TSE:6954	5.6T JPY	21%

Welbilt Inc
Glance View

Market Cap

3.4B EUR

Industry

Machinery

Welbilt Inc. stands as a pivotal player in the commercial food service industry, carving its niche by sculpting innovation into kitchen equipment that meets the rigorous demands of culinary professionals worldwide. With its roots tracing back to its founding in Eglin, Illinois, Welbilt has evolved into a global powerhouse by marrying engineering prowess with culinary insight. The company specializes in designing, manufacturing, and supplying a broad array of products, which include cooking and warming equipment, refrigeration systems, and beverage dispensing equipment. Each piece of equipment boasts cutting-edge technology and a keen appreciation for the nuances of food service, catering to a diverse clientele that ranges from fast-food giants to fine dining establishments. This robust portfolio allows Welbilt to not only cater to varied cooking and food preparation needs but also to stay at the forefront of kitchen technology. Central to Welbilt's business model is its ability to fuse quality craftsmanship with efficient distribution, enabling the company to turn its innovative designs into reliable revenue streams. The company's financial success is rooted in understanding its customers’ evolving needs and providing them with bespoke solutions that enhance operational efficiency. Welbilt captures value through a sophisticated global network of manufacturing operations and strategically positioned distribution centers, effectively reducing overhead costs and ensuring timely delivery. This enables the company to maintain strong relationships with its key customers and distributors. Coupled with strategic acquisitions and a focus on sustainable practices, Welbilt continually expands its market presence, reinforcing its position as a leader in the bustling world of commercial food service.

View 6M6 Analysis

6M6 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	Mastercard Inc NYSE:MA	Technology
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	Berkshire Hathaway Inc NYSE:BRK.A	US
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	Mastercard Inc NYSE:MA	US
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	Walmart Inc NYSE:WMT	US
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	Johnson & Johnson NYSE:JNJ	205.765 USD -0.29%
	Berkshire Hathaway Inc NYSE:BRK.A	747 150 USD 0.21%
	Bank of America Corp NYSE:BAC	55.63 USD 0.65%
	Mastercard Inc NYSE:MA	578.705 USD 1.13%
	UnitedHealth Group Inc NYSE:UNH	328.165 USD 0.23%
	Exxon Mobil Corp NYSE:XOM	118.015 USD 1.14%

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	Weatherford International PLC NASDAQ:WFRD	80.8 USD 2.5%

	Johnson & Johnson NYSE:JNJ	205.765 USD -0.29%
	Bank of America Corp NYSE:BAC	55.63 USD 0.65%
	Mastercard Inc NYSE:MA	578.705 USD 1.13%
	Salesforce Inc NYSE:CRM	264.15 USD 1.63%
	Abbvie Inc NYSE:ABBV	226.095 USD -0.32%
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Welbilt Inc
F:6M6