Operating Margin - Experian PLC (LSE:EXPN)

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Price: 3 369 GBX -2.18%

Market Cap: 30.9B GBX

24.8%

Current

24%

Average

6.2%

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

24.8%

Operating Profit

Revenue

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
IE		Experian PLC LSE:EXPN	31.5B GBP	25%
UK		Relx PLC LSE:REL	56.5B GBP	31%
CA		Thomson Reuters Corp TSX:TRI	78.8B CAD	29%
UK	I	IHS Markit Ltd F:0M3	37.9B EUR	25%
US		Verisk Analytics Inc NASDAQ:VRSK	30.8B USD	45%
US		CoStar Group Inc NASDAQ:CSGP	26.2B USD	-3%
US		Equifax Inc NYSE:EFX	26.2B USD	20%
US		Leidos Holdings Inc NYSE:LDOS	25.1B USD	12%
NL		Wolters Kluwer NV AEX:WKL	20.6B EUR	25%
CH		SGS SA SIX:SGSN	18.2B CHF	14%
US	U	UL Solutions Inc NYSE:ULS	17B USD	17%

Experian PLC
Glance View

Economic Moat

None

Market Cap

30.8B GBX

Industry

Professional Services

Experian PLC stands as one of the titans in the world of data and information services, carving out a niche that is both intricate and indispensable in today's financial ecosystem. Born out of the merger of rival credit information businesses in the late 20th century, it has evolved into a powerhouse that provides credit data and analytical tools to organizations worldwide. At its core, Experian collects and aggregates information on individuals' borrowing and repayment habits, creating comprehensive credit reports that are crucial for financial institutions assessing creditworthiness. This insight into consumer behavior not only aids lenders in making informed decisions but also empowers consumers by enabling them to better manage their credit standing. Through its Consumer Services division, Experian directly engages with individuals, offering credit monitoring, identity theft prevention, and education services to enhance financial literacy. While its traditional credit reporting service forms the backbone of its operation, Experian’s reach extends far beyond. Its Business Information division provides companies with sophisticated data solutions that guide strategic decisions, from marketing strategies to risk assessment. Moreover, Experian’s dedication to innovation is seen in its growing presence in the digital and data advanced analytics arenas. Here, it harnesses cutting-edge technology to refine its data offerings, broadening its array of services that include decision analytics and automated services to help businesses manage credit risk and prevent fraud. This multifaceted focus not only diversifies its revenue streams but situates Experian at the helm of a rapidly changing landscape where data-driven decision-making is pivotal. By weaving together the threads of trust, technology, and consumer empowerment, Experian continues to shape the future of global business intelligence.

View EXPN Analysis

EXPN 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	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

	Johnson & Johnson NYSE:JNJ	US
	Berkshire Hathaway Inc NYSE:BRK.A	US
	Bank of America Corp NYSE:BAC	US
	Mastercard Inc NYSE:MA	US
	UnitedHealth Group Inc NYSE:UNH	US
	Exxon Mobil Corp NYSE:XOM	US
	Pfizer Inc NYSE:PFE	US
	Palantir Technologies Inc NYSE:PLTR	US
	Nike Inc NYSE:NKE	US
	Visa Inc NYSE:V	US
	Alibaba Group Holding Ltd NYSE:BABA	CN
	JPMorgan Chase & Co NYSE:JPM	US
	Coca-Cola Co NYSE:KO	US
	Walmart Inc NYSE:WMT	US
	Verizon Communications Inc NYSE:VZ	US
	Chevron Corp NYSE:CVX	US

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	Johnson & Johnson NYSE:JNJ	208.1 USD 0.29%
	Berkshire Hathaway Inc NYSE:BRK.A	748 250 USD 0.44%
	Bank of America Corp NYSE:BAC	55.84 USD 0.36%
	Mastercard Inc NYSE:MA	582.365 USD 0.42%
	UnitedHealth Group Inc NYSE:UNH	345.155 USD 1.01%
	Exxon Mobil Corp NYSE:XOM	120 USD 1.27%

	Franklin Covey Co NYSE:FC	17.82 USD -0.89%
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	Ardmore Shipping Corp NYSE:ASC	11.59 USD -0.69%
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	Skyworks Solutions Inc NASDAQ:SWKS	59.925 USD 0.18%
	Weatherford International PLC NASDAQ:WFRD	87.465 USD 1.28%

Experian PLC
LSE:EXPN