Operating Margin

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Price: 106.4 GBX -1.07% Market Closed

Market Cap: 3.8B GBP

0.1%

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

0.1%

Operating Income

£394.7m

Revenue

£3.5B

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

0.1%

Operating Income

GBX394.7m

Revenue

£3.5B

Peer Comparison

Country		Company	Market Cap	Operating Margin
UK		Taylor Wimpey PLC LSE:TW	3.8B GBP	Loading...
US		D R Horton Inc NYSE:DHI	45.7B USD	Loading...
US	D	DR Horton Inc XMUN:HO2	27.5B EUR	Loading...
US		Lennar Corp NYSE:LEN	29.8B USD	Loading...
US		Pultegroup Inc NYSE:PHM	24.9B USD	Loading...
US		NVR Inc NYSE:NVR	21.5B USD	Loading...
JP		Sekisui House Ltd TSE:1928	2.3T JPY	Loading...
US		Toll Brothers Inc NYSE:TOL	13.7B USD	Loading...
US		TopBuild Corp NYSE:BLD	13.9B USD	Loading...
UK		Barratt Developments P L C LSE:BDEV	6.8B GBP	Loading...
US		Installed Building Products Inc NYSE:IBP	8.1B USD	Loading...

Market Distribution

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

Other Profitability Ratios

Taylor Wimpey PLC
Glance View

Economic Moat

None

Market Cap

3.8B GBX

Industry

Consumer products

In the landscape of the British construction industry, Taylor Wimpey PLC stands as a prominent entity, weaving together the threads of history and modern innovation. Born from the merger of Taylor Woodrow and George Wimpey in 2007, the company has since become a major force in the UK housing market. Navigating through the complex world of property development, Taylor Wimpey focuses on building homes that cater to a broad spectrum of buyers, from first-time homeowners to those seeking luxurious estates. The company capitalizes on its vast land bank, strategically acquiring land in prime locations to ensure a steady pipeline of development opportunities. This foresight in land acquisition not only puts the company in an advantageous position but also allows it to adapt to the ever-changing demands of the housing market. Revenue generation for Taylor Wimpey is a finely tuned process driven by the meticulous planning and execution of its projects. The company primarily earns through the sale of residential properties, with additional income streams emanating from land sales and partnerships with other developers and local councils. Each home they build represents a convergence of design efficiency and market research, ensuring that the end product aligns with consumer expectations. This approach not only enhances their marketability but also fosters customer satisfaction, which is crucial in an industry where reputation is key. By leveraging their robust sales force and marketing strategies, Taylor Wimpey navigates economic fluctuations, maintaining a focus on sustainable growth and shareholder value. Through prudent management and an insightful understanding of the housing sector, Taylor Wimpey continues to cement its status as a leader in the field of home construction and development.

View TW Analysis

TW Intrinsic Value

Undervaluation 25%

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.

Taylor Wimpey PLC
LSE:TW

Peer Comparison

Market Distribution

Other Profitability Ratios

Taylor Wimpey PLC
Glance View

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Taylor Wimpey PLC LSE:TW