Operating Margin

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Price: 1 732 GBX -0.57% Market Closed

Market Cap: £1.2B

6.5%

Improving

by 0.9%

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

6.5%

Operating Income

£191.3m

Revenue

£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

6.5%

Operating Income

GBX191.3m

Revenue

£3B

Peer Comparison

Country		Company	Market Cap	Operating Margin
UK		Keller Group PLC LSE:KLR	1.2B GBP	Loading...
FR		Vinci SA PAR:DG	65.6B EUR	Loading...
US		Quanta Services Inc NYSE:PWR	70.2B USD	Loading...
IN		Larsen & Toubro Ltd NSE:LT	5.1T INR	Loading...
IN		Larsen and Toubro Ltd F:LTO	46.1B EUR	Loading...
ES		Ferrovial SA MAD:FER	41.1B EUR	Loading...
NL		Ferrovial SE AEX:FER	40.7B EUR	Loading...
US		Comfort Systems USA Inc NYSE:FIX	39.8B USD	Loading...
DE	H	Hochtief AG XETRA:HOT	27.2B EUR	Loading...
US		EMCOR Group Inc NYSE:EME	31.3B USD	Loading...
CN	C	China State Construction Engineering Corp Ltd SSE:601668	210.7B CNY	Loading...

Market Distribution

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

Other Profitability Ratios

Keller Group PLC
Glance View

Market Cap

1.2B GBX

Industry

Construction

Keller Group PLC, a name that resonates robustly in the world of geotechnical solutions, has carved a niche for itself as a global leader by understanding the earth beneath our feet better than most. Founded in 1860, the company has a rich history shaped by technological advancements and engineering prowess. At the core of Keller's operations is its expertise in solving complex subsurface challenges, which it achieves by providing a wide array of services, including ground improvement, foundation solutions, and ground support. Such services are essential in construction projects that range from residential and commercial buildings to large-scale infrastructure like bridges and dams. Keller thrives on its ability to tailor these foundational solutions to meet the specific geological conditions of each project, drawing on its extensive industry experience and in-depth knowledge. The company's revenue model is anchored in its ability to offer bespoke geotechnical solutions that enhance the stability and longevity of structures, which is critical in an era of rapid urbanization and stringent safety standards. By leveraging its global presence, Keller can concurrently deploy resources and expertise worldwide, granting it competitive advantages in securing contracts across diverse markets. Its business success hinges on the collaboration with construction firms, architects, and municipal planners, aligning its solutions with the clients' structural objectives and budgetary constraints. The execution of these high-value contracts is where Keller not only showcases its technical capabilities but also ensures a steady stream of revenue, positioning itself as an indispensable partner in major construction endeavors around the globe.

View KLR Analysis

KLR Intrinsic Value

Undervaluation 39%

Intrinsic Value

Price

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.

Keller Group PLC
LSE:KLR

Peer Comparison

Market Distribution

Other Profitability Ratios

Keller Group PLC
Glance View

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Keller Group PLC LSE:KLR