Operating Margin - Tatneft' PAO (MOEX:TATNP)

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Price: 547 RUB 0.64%

Market Cap: 1.2T RUB

16.8%

Current

23%

Average

10.4%

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

16.8%

Operating Profit

339.8B

Revenue

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
RU		Tatneft' PAO MOEX:TATN	1.3T RUB	17%
US		Conocophillips NYSE:COP	115.3B USD	21%
CN	C	CNOOC Ltd SSE:600938	756.4B CNY	42%
CA		Canadian Natural Resources Ltd TSX:CNQ	92.7B CAD	27%
US		EOG Resources Inc NYSE:EOG	56.2B USD	33%
US		Hess Corp NYSE:HES	46.1B USD	32%
US	P	Pioneer Natural Resources Co LSE:0KIX	46B USD	34%
US		Diamondback Energy Inc NASDAQ:FANG	42.8B USD	36%
US		EQT Corp NYSE:EQT	33.3B USD	33%
US	C	Continental Resources Inc F:C5L	25.8B EUR	58%
AU		Woodside Energy Group Ltd ASX:WDS	43.7B AUD	30%

Tatneft' PAO
Glance View

Market Cap

1.2T RUB

Industry

Energy

In the heart of Tatarstan, Russia, Tatneft' PAO stands as a prominent figure in the oil and gas industry, a testament to more than seven decades of perseverance and innovation. Established in the early 1950s, the company has grown into one of Russia's leading vertically integrated oil producers, a status it maintains through a combination of traditional practices and forward-thinking technological advancements. Tatneft's primary business focuses on the exploration, production, refining, and marketing of oil and gas. Its operations leverage the rich petroleum reserves of the Volga-Urals oil and gas province, where the company's geologists and engineers dedicate their expertise to optimize extraction techniques. This includes the use of enhanced oil recovery methods, which have significantly boosted the output from mature fields, thus ensuring a steady stream of crude production. Beyond upstream activities, Tatneft's economic engine is fueled by its robust downstream operations, which include the processing of crude oil into a range of refined petroleum products. The company's state-of-the-art refineries, integrated with petrochemical complexes, allow it to produce motor fuels, industrial lubricants, and petrochemicals that are distributed across domestic and international markets. By maintaining control over its supply chain—from crude extraction to end-product delivery—Tatneft positions itself to capture value at every stage, capitalizing on market demand fluctuations and operational efficiencies. This comprehensive approach not only secures revenue but also underpins its efforts in diversifying energy-related ventures, such as renewable energy projects and sustainable development initiatives, illustrating Tatneft’s strategic foresight in navigating the evolving energy landscape.

View TATNP Analysis

TATNP 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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Tatneft' PAO
MOEX:TATNP