Operating Margin - Iren SpA (MIL:IRE)

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Price: 2.592 EUR 1.41%

Market Cap: 3.4B EUR

8.9%

Current

Average

13.8%

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

8.9%

Operating Profit

895.6m

Revenue

10.1B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
IT		Iren SpA MIL:IRE	3.3B EUR	9%
UK		National Grid PLC LSE:NG	57.4B GBP	30%
FR		Engie SA PAR:ENGI	55.7B EUR	14%
US		Sempra Energy NYSE:SRE	58.5B USD	23%
US	S	Sempra VSE:SREN	43.4B EUR	23%
DE		E.ON SE XETRA:EOAN	43B EUR	7%
US		Dominion Energy Inc NYSE:D	50.6B USD	29%
US		Public Service Enterprise Group Inc NYSE:PEG	40.4B USD	25%
DE		RWE AG XETRA:RWE	34.1B EUR	10%
DE		E ON SE MIL:EOAN	31.3B EUR	2%
US		Consolidated Edison Inc NYSE:ED	36.1B USD	18%

Iren SpA
Glance View

Market Cap

3.3B EUR

Industry

Utilities

Iren SpA, a prominent Italian multi-utility company, has woven itself into the urban and rural tapestries of northern Italy, delivering essential services that keep communities running smoothly. The company emerged from the merger of Enìa and Iride in 2010, marking a significant consolidation of expertise and resources. At its core, Iren operates across diverse sectors such as electricity, gas, thermal energy, integrated water services, waste management, and technologies for energy efficiency in public lighting and services. This intricate business model is supported by a robust infrastructure network that caters to millions of residents and businesses. Through its varied portfolio, Iren not only provides fundamental services but also positions itself as an integral player in Italy’s transition towards sustainable and efficient energy use. Iren’s financial success rests on its ability to maintain and expand its operational bases through constant innovation and adaptability. The company generates revenue by producing and dispatching electricity, managing an extensive gas supply network, providing wastewater treatment, and managing municipal solid waste. A significant portion of its income comes from electricity generation, where it owns a diversified mix of renewable and conventional power plants. Iren’s waste management operations, pivotal in the circular economy, allow it to capitalize on the recycling and energy recovery sectors. Moreover, its commitment to sustainability and energy efficiency initiatives opens additional revenue streams through eco-friendly projects and consultancy services aimed at reducing energy consumption. This broad spectrum of activity equips Iren to not only meet current market demands but also to anticipate the evolving needs of the future.

View IRE Analysis

IRE 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
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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
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	Coca-Cola Co NYSE:KO	US
	Walmart Inc NYSE:WMT	US
	Verizon Communications Inc NYSE:VZ	US
	Chevron Corp NYSE:CVX	US

	Johnson & Johnson NYSE:JNJ	207.35 USD 0.19%
	Berkshire Hathaway Inc NYSE:BRK.A	744 120 USD -1.41%
	Bank of America Corp NYSE:BAC	55.95 USD 1.73%
	Mastercard Inc NYSE:MA	563.13 USD -1.36%
	UnitedHealth Group Inc NYSE:UNH	336.4 USD 1.91%
	Exxon Mobil Corp NYSE:XOM	122.65 USD 1.92%

	Franklin Covey Co NYSE:FC	16.64 USD -0.83%
	Mohawk Industries Inc NYSE:MHK	109.51 USD 0.19%
	Ardmore Shipping Corp NYSE:ASC	10.45 USD -1.32%
	ASGN Inc NYSE:ASGN	46.66 USD -3.13%
	Skyworks Solutions Inc NASDAQ:SWKS	64.395 USD 1.55%
	Weatherford International PLC NASDAQ:WFRD	80.89 USD 3.36%

	Johnson & Johnson NYSE:JNJ	207.35 USD 0.19%
	Bank of America Corp NYSE:BAC	55.95 USD 1.73%
	Mastercard Inc NYSE:MA	563.13 USD -1.36%
	Salesforce Inc NYSE:CRM	253.62 USD -4.26%
	Abbvie Inc NYSE:ABBV	229.31 USD 0.36%
	Home Depot Inc NYSE:HD	345.82 USD 0.5%

Iren SpA
MIL:IRE