Operating Margin - EVO Payments Inc (F:E19)

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Price: 26.2 EUR 2.34%

Market Cap: 2.2B EUR

Current

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

Operating Profit

24.4m

Revenue

820.6m

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US	E	EVO Payments Inc F:E19	2.2B EUR	3%
US		Visa Inc NYSE:V	681.9B USD	66%
US		Mastercard Inc NYSE:MA	521.5B USD	59%
US		Automatic Data Processing Inc NASDAQ:ADP	104.5B USD	26%
US		PayPal Holdings Inc NASDAQ:PYPL	56.5B USD	19%
NL		Adyen NV AEX:ADYEN	43.8B EUR	41%
US		Paychex Inc NASDAQ:PAYX	41.2B USD	41%
US		Fidelity National Information Services Inc NYSE:FIS	34.9B USD	17%
US		Fiserv Inc NYSE:FI	34.3B USD	29%
ES		Amadeus IT Group SA MAD:AMS	27B EUR	29%
US		Broadridge Financial Solutions Inc NYSE:BR	26.7B USD	18%

EVO Payments Inc
Glance View

Market Cap

2.2B EUR

Industry

Technology

EVO Payments Inc., founded in 1989, has carved a significant niche for itself in the global payments landscape, offering innovative solutions for businesses to streamline their transaction processes. Headquartered in Atlanta, Georgia, EVO operates in over 50 markets worldwide, facilitating seamless electronic payment acceptance for merchants of all sizes. Their offerings span a comprehensive suite of services, including e-commerce solutions, mobile point-of-sale products, and integrated payment services that are tailored to meet the unique needs of various enterprises. By establishing partnerships with financial institutions and technology firms, EVO leverages these alliances to provide a versatile array of payment options, ensuring merchants can facilitate transactions securely and efficiently, whether in-store, online, or via mobile devices. This ecosystem not only consolidates EVO Payments' position as a versatile facilitator but also as a trusted partner for many businesses in managing their payment processes. The lifeblood of EVO Payments' business model lies in transaction-based fees, including processing fees, service charges, and additional value-added offerings. Each time a transaction is processed through their network, EVO earns a fee, which forms a consistent and scalable revenue stream. Additionally, the company generates income from ancillary services such as fraud management, data protection, and compliance solutions, which are increasingly important in today’s digital-centric economy. As the e-commerce and digital payment landscapes continue to expand, EVO's robust infrastructure and broad international presence position it advantageously to capitalize on the growing demand for reliable and sophisticated payment processing solutions. With technology rapidly evolving, EVO is strategically focused on innovation, continuously enhancing its service offerings to maintain competitiveness and address emerging market needs.

View E19 Analysis

E19 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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EVO Payments Inc
F:E19