Operating Margin

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Price: 189.65 GBX Market Closed

Market Cap: £18.9B

16.2%

Improving

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

16.2%

Operating Income

£3.3B

Revenue

£20B

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

16.2%

Operating Income

GBX3.3B

Revenue

£20B

Peer Comparison

Country	Company	Market Cap	Operating Margin
UK	BT Group PLC LSE:BT.A	18.9B GBP	Loading...
US	AT&T Inc NYSE:T	176.3B USD	Loading...
US	Verizon Communications Inc NYSE:VZ	168.6B USD	Loading...
DE	Deutsche Telekom AG XETRA:DTE	134.4B EUR	Loading...
JP	Nippon Telegraph and Telephone Corp TSE:9432	12.6T JPY	Loading...
CN	China Telecom Corp Ltd SSE:601728	543.6B CNY	Loading...
SG	Singapore Telecommunications Ltd SGX:Z74	76B SGD	Loading...
SA	Saudi Telecom Company SJSC SAU:7010	189.1B SAR	Loading...
FR	Orange SA PAR:ORA	41.4B EUR	Loading...
CH	Swisscom AG SIX:SCMN	32.8B CHF	Loading...
AU	Telstra Corporation Ltd ASX:TLS	55.5B AUD	Loading...

Market Distribution

Min	-195 650%
30th Percentile	0%
Median	0.1%
70th Percentile	0.2%
Max	4 630.7%

Other Profitability Ratios

BT Group PLC
Glance View

Economic Moat

None

Market Cap

18.9B GBX

Industry

Telecommunication

In the landscape of global telecommunications, BT Group PLC stands as a stalwart, weaving connections through an array of services that touch every corner of modern communication. Originally birthed from the British telecommunications industry’s early public service origins, BT metamorphosed into a formidable private enterprise. This transformation, completed in the 1980s through privatization, marked its shift from the sole custodian of British telephone services to a multifaceted, competitive entity in the international arena. Its headquarters nestled in London, BT’s extensive operations span broadband, TV, and fixed-line telecommunications services. The company doesn’t just connect calls; it powers the digital backbone of the UK with fiber optic networks, ensuring homes and businesses stay seamlessly linked to the world, driving commerce, conversation, and creativity. At the heart of BT Group's revenue machine is BT Consumer, which ferries its massive pool of broadband subscribers into the realms of internet and entertainment, competing fiercely with other providers through its brand, EE, for mobile services. The company capitalizes on its infrastructure investment by offering bundled packages that combine internet, mobile, and digital television, a strategy tapping into the growing consumer trend of consolidated billing and service integration. Meanwhile, BT Global Services extends its enterprise grip beyond the British Isles, catering to multinational corporations and governments with secure connectivity solutions, cloud services, and cybersecurity. Thus, BT operationalizes its vast network assets and strategic partnerships, converting connectivity into currency, while navigating the complex regulatory and technological landscapes of telecommunications.

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BT.A 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.

BT Group PLC
LSE:BT.A

Peer Comparison

Market Distribution

Other Profitability Ratios

BT Group PLC
Glance View

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BT Group PLC LSE:BT.A