Operating Margin

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Price: 2.15 MYR 1.9% Market Closed

Market Cap: 14.7B MYR

3.6%

Declining

by 0.2%

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

3.6%

Operating Income

2.5B

Revenue

69.8B

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

3.6%

Operating Income

MYR2.5B

Revenue

69.8B

Peer Comparison

Country		Company	Market Cap	Operating Margin
MY	S	Sime Darby Bhd KLSE:SIME	14.7B MYR	Loading...
US		General Electric Co NYSE:GE	333.2B USD	Loading...
DE		Siemens AG XETRA:SIE	197.8B EUR	Loading...
JP		Hitachi Ltd TSE:6501	23.5T JPY	Loading...
US		Honeywell International Inc NASDAQ:HON	136.5B USD	Loading...
ZA	B	Bidvest Group Ltd JSE:BVT	83.6B Zac	Loading...
US		3M Co NYSE:MMM	82.9B USD	Loading...
CN		CITIC Ltd HKEX:267	348.2B HKD	Loading...
US	R	Roper Technologies Inc F:ROP	37.1B EUR	Loading...
KR		Samsung C&T Corp KRX:028260	48.9T KRW	Loading...
HK		CK Hutchison Holdings Ltd HKEX:1	235B HKD	Loading...

Market Distribution

Min	-51 526.8%
30th Percentile	0.6%
Median	6.7%
70th Percentile	13.5%
Max	3 753.7%

Other Profitability Ratios

Sime Darby Bhd
Glance View

Market Cap

14.7B MYR

Industry

Industrial Conglomerates

In the sprawling expanse of Southeast Asia, Sime Darby Bhd stands as a towering emblem of diversified business acumen. Originally rooted in trade and plantations since its inception in the 19th century, Sime Darby has evolved into a modern conglomerate, bridging industries from agriculture to industrial equipment across the globe. Its journey is one marked by strategic pivots and expansions, deftly navigating shifts in global markets while maintaining a firm hold on its traditional core business. The company's foundation in plantations, particularly palm oil, still forms a significant part of its operations, with vast estates producing raw materials essential to the global supply chain of consumer goods. Yet, Sime Darby is not merely resting on the laurels of its palm oil legacy; its ventures in motor vehicle sales and services, primarily through its extensive dealership networks in Asia Pacific regions, underscore its strategic diversification. Today, Sime Darby's pursuits stretch far beyond what might traditionally define an agribusiness. By delving into sectors such as industrial equipment distribution, healthcare, and logistics, it has effectively created a buffer against market volatility inherent in any single industry. Its industrial division, which supplies heavy machinery and equipment to mining and construction sectors, is a testament to the company’s adaptability and forward-looking strategies. By integrating services such as maintenance and technical support, Sime Darby not only extends its revenue streams but also solidifies long-term partnerships with its clients. This blend of traditional strengths and modern diversification allows the company to leverage its historical expertise while exploring new avenues for growth and profitability, securing its status as a formidable player across multiple sectors.

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SIME Intrinsic Value

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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.

Sime Darby Bhd
KLSE:SIME

Peer Comparison

Market Distribution

Other Profitability Ratios

Sime Darby Bhd
Glance View

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Sime Darby Bhd KLSE:SIME