Operating Margin - Brait PLC (JSE:BAT)

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Price: 218 Zac -1.36%

Market Cap: 8.4B Zac

77.6%

Current

92%

Average

24%

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

77.6%

Operating Profit

520m

Revenue

670m

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
MT	B	Brait PLC JSE:BAT	8.4B Zac	78%
US		Blackstone Inc NYSE:BX	184.9B USD	50%
US		BlackRock Inc NYSE:BLK	164.5B USD	33%
US		KKR & Co Inc NYSE:KKR	116.4B USD	2%
CA		Brookfield Corp NYSE:BN	101.7B USD	26%
CA	B	BROOKFIELD ASSET MANAGEMENT LTD TSX:BAM	118B CAD	54%
ZA	N	Ninety One Ltd JSE:NY1	85.2B Zac	26%
CA		Brookfield Asset Management Inc NYSE:BAM	85.5B USD	54%
US		BROOKFIELD ASSET MANAGEMENT LTD F:RW5	69.6B EUR	54%
US		Bank of New York Mellon Corp NYSE:BK	80.8B USD	0%
LU	R	Reinet Investments SCA JSE:RNI	79.1B Zac	N/A

Brait PLC
Glance View

Market Cap

8.4B Zac

Industry

Financial Services

Brait PLC emerges as a significant player in the realm of investment holding companies, with its roots firmly planted in the Southern African and European markets. Established originally as a private equity firm, Brait has undergone a strategic evolution over the years, shifting towards long-term investment holdings that target specific sectors with robust growth potential. The company’s portfolio is crafted with meticulous precision, focusing predominantly on consumer-facing businesses. Brait's investments typically encompass sectors such as retail, food and beverages, and healthcare, thereby riding on the recurring revenue and consumer demand that these industries consistently generate. This sectoral commitment allows Brait to leverage not only organic growth but also the operational synergies and strategic oversight it brings to its investee companies, further enhancing value. The revenue model for Brait hinges on capital appreciation and strategic exits where the company divests its stakes at opportune moments, ideally post-value enhancement. This approach allows Brait to unlock shareholder value, paying dividends or reinvesting gains in burgeoning opportunities. The firm benefits as its portfolio companies thrive, deliver profitability, and expand their market presence. Beyond capital gains, the company occasionally realizes revenue through management fees and dividends from its investments, although these streams are secondary to its primary model of sustainable long-term growth. Brait PLC's strategic agility in managing and optimizing its portfolio ensures that it not only navigates the economic cycles with resilience but also captures high-value opportunities as they emerge in its targeted sectors.

View BAT Analysis

BAT 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.

US	Johnson & Johnson NYSE:JNJ	Pharmaceuticals
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

	Johnson & Johnson NYSE:JNJ	US
	Berkshire Hathaway Inc NYSE:BRK.A	US
	Bank of America Corp NYSE:BAC	US
	Mastercard Inc NYSE:MA	US
	UnitedHealth Group Inc NYSE:UNH	US
	Exxon Mobil Corp NYSE:XOM	US
	Pfizer Inc NYSE:PFE	US
	Palantir Technologies Inc NYSE:PLTR	US
	Nike Inc NYSE:NKE	US
	Visa Inc NYSE:V	US
	Alibaba Group Holding Ltd NYSE:BABA	CN
	JPMorgan Chase & Co NYSE:JPM	US
	Coca-Cola Co NYSE:KO	US
	Walmart Inc NYSE:WMT	US
	Verizon Communications Inc NYSE:VZ	US
	Chevron Corp NYSE:CVX	US

	Johnson & Johnson NYSE:JNJ	206.37 USD -0.93%
	Berkshire Hathaway Inc NYSE:BRK.A	745 600 USD -1.34%
	Bank of America Corp NYSE:BAC	55.27 USD 1.86%
	Mastercard Inc NYSE:MA	572.23 USD 1.06%
	UnitedHealth Group Inc NYSE:UNH	327.42 USD -0.22%
	Exxon Mobil Corp NYSE:XOM	116.69 USD 0.13%

	Franklin Covey Co NYSE:FC	16.88 USD -0.53%
	Mohawk Industries Inc NYSE:MHK	107.88 USD -1.47%
	Ardmore Shipping Corp NYSE:ASC	10.89 USD 0.37%
	ASGN Inc NYSE:ASGN	48.8 USD -0.51%
	Skyworks Solutions Inc NASDAQ:SWKS	64.68 USD 0.29%
	Weatherford International PLC NASDAQ:WFRD	78.83 USD 2.38%

	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%
	Home Depot Inc NYSE:HD	345 USD -2.81%

Brait PLC
JSE:BAT