Operating Margin

Watchlist Manager

Watchlist

Price: 54.7862 EUR 0.16% Market Closed

Market Cap: €14.9m

4.7%

No historical data

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

4.7%

Operating Income

€246.2m

Revenue

€5.3B

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

4.7%

Operating Income

€246.2m

Revenue

€5.3B

Peer Comparison

Country		Company	Market Cap	Operating Margin
DE	H	Hornbach Baumarkt AG XETRA:HBM	1.6B EUR	Loading...
US		Home Depot Inc NYSE:HD	377.2B USD	Loading...
US		Lowe's Companies Inc NYSE:LOW	152.9B USD	Loading...
UK		Kingfisher PLC LSE:KGF	5.9B GBP	Loading...
US		Floor & Decor Holdings Inc NYSE:FND	7.7B USD	Loading...
MY	M	Mr DIY Group M Bhd KLSE:MRDIY	18B 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...
TH	M	MR. D.I.Y. Holding (Thailand) PCL SET:MRDIYT	52.3B THB	Loading...
DE		Hornbach Holding AG & Co KGaA XETRA:HBH	1.3B EUR	Loading...

Market Distribution

Min	-61 459.6%
30th Percentile	0.7%
Median	4.5%
70th Percentile	9.8%
Max	94 540%

Other Profitability Ratios

Hornbach Baumarkt AG
Glance View

Market Cap

14.9m EUR

Industry

Retail

Hornbach Baumarkt AG, a stalwart in the European home improvement retail space, is a key player that combines the traditional values of customer service with the efficiency of modern retail strategies. Founded in 1877, Hornbach has grown from its humble beginnings in Germany to an expansive network of over 160 stores across nine European countries. The company operates on a distinctive model characterized by extensive product ranges and a massive store format, allowing it to cater to both DIY enthusiasts and professional contractors. These stores, some of which can exceed 20,000 square meters, house a plethora of construction materials, tools, gardening supplies, and home improvement products, providing a comprehensive shopping experience under one roof. Hornbach’s ability to stock vast inventories in large-scale outlets sets it apart from many competitors, fostering a one-stop shop appeal that draws customers looking for both the breadth and depth of choice. The company generates revenue largely from brick-and-mortar sales, but its robust multi-channel approach also leverages online platforms to capture the growing shift towards e-commerce. This dual-channel strategy is augmented by Hornbach’s commitment to everyday low pricing, a philosophy aimed at building consumer trust and satisfaction. By circumventing the high-low pricing tactics and unpredictable discounts of some rivals, Hornbach instead opts for consistent price transparency, ensuring that customers perceive genuine value with every purchase. Furthermore, the firm’s dedication to environmental considerations, evident in its energy-efficient store designs and sustainable product offerings, appeals to a growing base of eco-conscious consumers. This pragmatic yet forward-thinking approach to retail has carved a niche for Hornbach in the competitive DIY market, ensuring steady growth and a loyal customer base eager to return for both quality and reliability.

View 0ENN Analysis

0ENN 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.

Hornbach Baumarkt AG
LSE:0ENN

Peer Comparison

Market Distribution

Other Profitability Ratios

Hornbach Baumarkt AG
Glance View

See Also

Company

Help

Tools

Stocks

52 Week Range	N/A N/A
Price Target

Hornbach Baumarkt AG LSE:0ENN