Operating Margin - MIX Telematics Ltd (JSE:MIX)

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Price: 1 100 Zac

Market Cap: 6.1B Zac

10.7%

Current

11%

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

10.7%

Operating Profit

288.7m

Revenue

2.7B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
ZA	M	MIX Telematics Ltd JSE:MIX	6.1B Zac	11%
IL		Sapiens International Corporation NV NASDAQ:SPNS	779.6B USD	14%
US		Ezenia! Inc OTC:EZEN	567B USD	-132%
US		Palantir Technologies Inc NYSE:PLTR	458.8B USD	22%
DE		SAP SE XETRA:SAP	243.6B EUR	27%
US		Salesforce Inc NYSE:CRM	244.8B USD	22%
US		Applovin Corp NASDAQ:APP	244.2B USD	60%
US		Intuit Inc NASDAQ:INTU	187B USD	27%
US		Adobe Inc NASDAQ:ADBE	151B USD	37%
US	N	NCR Corp LSE:0K45	137.3B USD	5%
US		Cadence Design Systems Inc NASDAQ:CDNS	85.8B USD	32%

MIX Telematics Ltd
Glance View

Market Cap

6.1B Zac

Industry

Technology

MIX Telematics Ltd, a global leader in telematics solutions, has crafted a narrative of growth and innovation from its roots in South Africa to a prominent presence across continents. Founded in the mid-'90s, the company has consistently evolved to meet the demands of an ever-changing technological landscape. At its core, MIX Telematics specializes in fleet and mobile asset management solutions, offering advanced technology-driven services that enable their clients to maximize efficiency and safety. By providing real-time tracking, comprehensive data analytics, and performance monitoring, the company empowers businesses to streamline operations, reduce costs, and enhance vehicle security. MIX Telematics leverages cloud-based platforms to deliver these services, catering to diverse industries such as transportation, logistics, oil and gas, and mining. The business model of MIX Telematics is strategically designed around recurring revenue streams that stem from subscription-based services. Clients subscribe to their Software-as-a-Service (SaaS) offerings, which provide continuous updates, support, and access to their extensive data analytics capabilities. This not only secures long-term customer relationships but also ensures a steady cash flow, anchoring the company's financial stability. By focusing on scalable solutions that can be customized to meet specific client needs, they have built a resilient ecosystem that fosters growth. The value proposition is clear: enhancing operational efficiency and safety while delivering measurable returns on investment. With a strong commitment to innovation and customer satisfaction, MIX Telematics continues to reinforce its status as a formidable player in the telematics sector.

View MIX Analysis

MIX 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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US	Mastercard Inc NYSE:MA	Technology
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MIX Telematics Ltd
JSE:MIX