Operating Margin

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Price: 14 701 Zac -6.88% Market Closed

Market Cap: 33.3m ZAR

2.9%

Improving

by 0.3%

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

2.9%

Operating Income

334.5m

Revenue

11.5B

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

2.9%

Operating Income

Zac334.5m

Revenue

11.5B

Peer Comparison

Country		Company	Market Cap	Operating Margin
ZA	C	Cashbuild Ltd JSE:CSB	33.3m ZAR	Loading...
US		Home Depot Inc NYSE:HD	384B USD	Loading...
US		Lowe's Companies Inc NYSE:LOW	155B USD	Loading...
US		Floor & Decor Holdings Inc NYSE:FND	8.1B USD	Loading...
UK		Kingfisher PLC LSE:KGF	5.9B GBP	Loading...
MY	M	Mr DIY Group M Bhd KLSE:MRDIY	17.8B MYR	Loading...
MY		Mr DIY Group (M) Bhd OTC:MDIYF	3.4B USD	Loading...
TH	H	Home Product Center PCL SET:HMPRO	87.6B THB	Loading...
SE		Clas Ohlson AB STO:CLAS B	19.2B SEK	Loading...
DE	H	Hornbach Baumarkt AG XETRA:HBM	1.6B EUR	Loading...
TH	M	MR. D.I.Y. Holding (Thailand) PCL SET:MRDIYT	52.3B THB	Loading...

Market Distribution

Min	-2.8%
30th Percentile	2.2%
Median	17.3%
70th Percentile	38%
Max	468.2%

Other Profitability Ratios

Cashbuild Ltd
Glance View

Market Cap

33.3m Zac

Industry

Retail

In the bustling landscape of construction and home improvement in Southern Africa, Cashbuild Ltd. has carved out a significant presence, primarily catering to the needs of individuals and small to medium-sized contractors disseminated across rural and urban areas alike. Established in the late 1970s, Cashbuild has grown to become one of the largest retailers of building materials and associated products in the region. With a substantial network of stores spanning South Africa, Botswana, Lesotho, Namibia, Eswatini, and Zambia, the company serves a burgeoning customer base eager for accessible, quality building supplies tailored to local needs. Cashbuild’s stores are strategically placed within close proximity to communities, providing critical accessibility and an understanding of the local market's unique demands. This grassroots approach allows the company to foster strong relationships with customers, who rely on its consistent availability of essential building products. Cashbuild’s revenue model hinges on the sale of a wide variety of construction and home improvement materials. The product range spans from basic building materials like cement, bricks, and paint to more intricate offerings such as electrical, plumbing, and roofing supplies. By aligning their inventory with the ever-evolving needs of the building and renovation markets, Cashbuild drives continuous foot traffic and repeat purchases. Furthermore, they capitalize on economies of scale, allowing them to offer competitive prices to their value-focused clientele. Beyond mere transactions, Cashbuild fosters a commitment to service quality and community sustainability, which bolsters customer loyalty and enhances repeat business. This successful blend of localized reach, strategic product offerings, and community-centric values constitutes the cornerstone of Cashbuild's robust business framework.

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CSB 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.

Cashbuild Ltd
JSE:CSB

Peer Comparison

Market Distribution

Other Profitability Ratios

Cashbuild Ltd
Glance View

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Cashbuild Ltd JSE:CSB