Operating Margin

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Price: 48.5 EUR Market Closed

Market Cap: 41.1B EUR

6.8%

Declining

by 1.5%

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

6.8%

Operating Income

₩12.6T

Revenue

₩186T

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

6.8%

Operating Income

€12.6T

Revenue

₩186T

Peer Comparison

Country		Company	Market Cap	Operating Margin
KR		Hyundai Motor Co KRX:005380	142.9T KRW	Loading...
US		Tesla Inc NASDAQ:TSLA	1.4T USD	Loading...
JP		Toyota Motor Corp TSE:7203	46.3T JPY	Loading...
CN		BYD Co Ltd SZSE:002594	857.9B CNY	Loading...
DE		Mercedes Benz Group AG MIL:MBG	75.3B EUR	Loading...
US		General Motors Co NYSE:GM	74.9B USD	Loading...
DE		Daimler AG XETRA:DAI	67.5B EUR	Loading...
IT		Ferrari NV MIL:RACE	56B EUR	Loading...
DE		Bayerische Motoren Werke AG XETRA:BMW	53.3B EUR	Loading...
DE		Mercedes-Benz Group AG XETRA:MBG	51.1B EUR	Loading...
DE	V	Volkswagen AG XETRA:VOW	49.6B EUR	Loading...

Market Distribution

Min	-163 055.6%
30th Percentile	-2.2%
Median	2.7%
70th Percentile	6.8%
Max	22 874.8%

Other Profitability Ratios

Hyundai Motor Co
Glance View

Economic Moat

None

Market Cap

41.1B EUR

Industry

Automobiles

Hyundai Motor Co., a driving force in the global automotive industry, has its origins in South Korea, where it was founded in 1967. From the outset, Hyundai embarked on a journey to not just make cars but to craft an experience behind the wheel. Its meteoric rise began with the Pony, Korea's first mass-produced car, which laid the groundwork for Hyundai's reputation in quality manufacturing and innovation. The company has since evolved into a global colossus, operating in over 190 countries and producing millions of vehicles each year. Central to Hyundai's operations is a commitment to vertical integration; the company controls significant parts of its supply chain, from manufacturing steel to assembling vehicles, ensuring cost efficiencies and quality control that contribute to their competitive pricing strategy. In terms of revenue generation, Hyundai leans heavily on its diverse portfolio of vehicles, ranging from economy models to luxury offerings under its Genesis brand. The company's profitability is driven by its ability to capture diverse market segments, leveraging innovations in technology and design to stay relevant amid dynamic consumer preferences. Beyond mere car sales, Hyundai invests in alternative energy, spearheading advancements in electric and hydrogen fuel vehicles to secure a foothold in the green energy transition. This focus not only aligns with global trends but also taps into government incentives and consumer demand for sustainable solutions. Hyundai's strategic expansion into mobility services and autonomous driving technology underscores its vision for the future, positioning the company not just as a carmaker but as a pioneer in comprehensive transportation solutions.

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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.

Hyundai Motor Co
F:HYU

Peer Comparison

Market Distribution

Other Profitability Ratios

Hyundai Motor Co
Glance View

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Hyundai Motor Co F:HYU