Operating Margin - Organicheskiy Sintez Kazan PAO (MOEX:KZOS)

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Price: 65.2 RUB -0.76%

Market Cap: 124.2B RUB

14.8%

Current

18%

Average

5.9%

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

14.8%

Operating Profit

16.3B

Revenue

109.9B

Operating Margin Across Competitors

Country	Company	Market Cap	Operating Margin
RU	Organicheskiy Sintez Kazan PAO MOEX:KZOS	116.4B RUB	15%
SA	Saudi Basic Industries Corporation SJSC SAU:2010	228.3B SAR	2%
ID	Chandra Asri Pacific PT Tbk OTC:PTPIF	45.6B USD	4%
ID	Chandra Asri Petrochemical Tbk PT IDX:TPIA	605.5T IDR	4%
CN	Hengli Petrochemical Co Ltd SSE:600346	145.5B CNY	6%
KR	LG Chem Ltd KRX:051910	27.1T KRW	3%
ID	Barito Pacific Tbk PT IDX:BRPT	293.3T IDR	1%
US	Dow Inc NYSE:DOW	16.4B USD	1%
TW	Nan Ya Plastics Corp TWSE:1303	460.8B TWD	1%
CN	Rongsheng Petrochemical Co Ltd SZSE:002493	102.2B CNY	3%
CN	Zhejiang Juhua Co Ltd SSE:600160	101B CNY	19%

Organicheskiy Sintez Kazan PAO
Glance View

Market Cap

116.4B RUB

Industry

Chemicals

Organicheskiy Sintez Kazan PAO, often known simply as Orgsintez, stands as a significant pillar in Russia's petrochemical industry. Nestled in Kazan, the capital of Tatarstan, this company leverages its strategic location to its advantage, tapping into the rich vein of natural resources that the region offers. What sets Orgsintez apart is its integrated chain of operations, which stretches from processing raw hydrocarbons to producing a diverse array of end-products. This comprehensive approach allows the company to capture value at every stage of its supply chain, ensuring a steady flow of revenue. By manufacturing a variety of chemical products, including plastics, rubbers, and resins, Orgsintez plays a crucial role in supplying materials that are foundational to numerous industries, from automotive to construction, thereby cementing its place in both domestic and international markets. The economic mechanics of Orgsintez revolve around its ability to efficiently convert raw materials into high-demand petrochemical products. By utilizing state-of-the-art technology and maintaining rigorous quality controls, Orgsintez ensures the resilience and adaptability of its operations in a competitive marketplace. The company also benefits from its strong ties to regional resources and a robust distribution network, contributing to its competitive pricing power. Moreover, Orgsintez's commitment to innovation, including investments in research and development, has allowed it to continuously refine its product offerings. This strategic focus on efficiency, quality, and innovation not only strengthens Orgsintez's market position but also fuels its growth momentum, making it a noteworthy player in the global petrochemical arena.

View KZOS Analysis

KZOS 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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Organicheskiy Sintez Kazan PAO
MOEX:KZOS