Operating Margin - Equites Property Fund Ltd (JSE:EQU)

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Price: 1 816 Zac -0.55%

Market Cap: 14.1B Zac

45%

Current

58%

Average

6.9%

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

45%

Operating Profit

1.8B

Revenue

3.9B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
ZA	E	Equites Property Fund Ltd JSE:EQU	14.1B Zac	45%
UK	E	Eight Capital Partners PLC F:ECS	633.6T EUR	N/A
US	G	GE Vernova LLC NYSE:GEV	174.8B USD	4%
US	C	China Industrial Group Inc OTC:CIND	121B USD	10%
NL	N	Nepi Rockcastle NV JSE:NRP	88.5B Zac	62%
US	R	Reddit Inc NYSE:RDDT	47.8B USD	14%
CH	G	Galderma Group AG SIX:GALD	38.4B CHF	16%
US	C	CoreWeave Inc NASDAQ:CRWV	43.9B USD	4%
US		Symbotic Inc NASDAQ:SYM	40.4B USD	-3%
US		Coupang Inc F:788	32.8B EUR	2%
ID		Amman Mineral Internasional Tbk PT IDX:AMMN	584.7T IDR	2%

Equites Property Fund Ltd
Glance View

Market Cap

14.1B Zac

Industry

N/A

Equites Property Fund Ltd, a narrative of strategic foresight and logistical acumen, stands as a beacon in the realm of real estate investment trusts. Emerging from the vibrant South African market landscape, Equites has carved out a niche in the logistics and industrial property space. Its story starts with a keen focus on high-quality assets, strategically located in key nodes that facilitate supply chain efficiencies and cater predominantly to blue-chip tenants. This focus ensures long-term, stable income streams for the company, which are underpinned by lease agreements with robust occupiers, including omnichannel retailers and logistic giants. By aligning their property portfolio with the evolving demands of international logistics, Equites has expanded beyond South Africa's borders, reaching into the United Kingdom, a move which reflects their ambition to diversify risk and tap into mature markets with a similar demand for top-tier logistics properties. The company's revenue generation model is straightforward yet compelling, anchored in the collection of rent from its tenants. Growth is driven by a methodical acquisition strategy, targeting properties that promise a consistent yield and potential value appreciation. Equites enhances its sustainability through active management of its assets, investing in technologies and amenities that increase property efficiency, appeal, and lease longevity. This strategy stems from understanding that logistics properties are not just about location but also adaptability and technological advancement to keep pace with rapid changes in e-commerce and global distribution networks. Equites' ability to offer spaces that are technologically advanced and strategically located has seen it become a preferred partner for businesses looking for operational efficiency, positioning it for continued success in an ever-evolving industrial landscape.

View EQU Analysis

EQU 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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Equites Property Fund Ltd
JSE:EQU