Operating Margin - Aviakompaniya UTair PAO (MOEX:UTAR)

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Price: 11 RUB 0.27%

Market Cap: 86.9B RUB

3.7%

Current

12%

Average

4.8%

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

3.7%

Operating Profit

4.4B

Revenue

118.4B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
RU	A	Aviakompaniya UTair PAO MOEX:UTAR	86.9B RUB	4%
VN	V	Vietjet Aviation JSC VN:VJC	123.2T VND	6%
VN	V	Vietnam Airlines JSC VN:HVN	80.1T VND	9%
MX		Grupo Aeromexico SAB de CV NYSE:AERO	3B USD	-10%
RU		Aeroflot-Rossiyskiye Avialinii PAO MOEX:AFLT	228.6B RUB	10%
AU	V	Virgin Australia Holdings Ltd ASX:VGN	2.7B AUD	N/A
TW	T	Tigerair Taiwan Co Ltd TWSE:6757	30.4B TWD	N/A
IL	I	Israir Group Ltd TASE:ISRG	474.6m ILA	5%
US	F	Flyexclusive Inc AMEX:FLYX	327.7m USD	-17%
IS	I	Icelandair Group hf ICEX:ICEAIR	37.8B ISK	-1%
US	S	Surf Air Mobility Inc NYSE:SRFM	122m USD	-40%

Aviakompaniya UTair PAO
Glance View

Market Cap

86.9B RUB

Industry

Airlines

UTair Aviation has been navigating the skies of Russia and beyond with an eye on steady growth and strategic adaptation. Based in Khanty-Mansiysk, the heart of its operations lies in its commitment to connecting the dots across vast and remote Russian territories. UTair's fleet is a blend of fixed-wing and rotary-wing aircraft, the latter playing a crucial role in servicing hard-to-reach areas and oil and gas sectors. This dual focus not only diversifies their service offerings but also insulates their revenue streams. On one hand, their passenger transport services cater to bustling domestic routes, economic hubs, and select international destinations. On the other, their helicopter services offer bespoke support for industries in Siberia and the Arctic, alongside search and rescue and medical evacuation missions. These diverse operations have positioned them as a crucial player within both commercial aviation and specialized flight services. The financial pulse of UTair beats through various revenue avenues, with passenger carriage and helicopter services at the core. Passenger services, like most carriers, are influenced by route efficiency, fleet utilization, and ticket pricing strategies. However, UTair's unique edge comes from its helicopter division which capitalizes on lucrative contracts with energy companies, providing essential transport of personnel and equipment to remote drilling sites. Additionally, the company's maintenance division has developed into a revenue-generating operation itself, servicing not only their fleet but also offering maintenance, repair, and overhaul (MRO) services to other aircraft. This diversification has allowed UTair to cushion itself against the volatilities of the aviation market, even as it faces challenges related to fluctuating fuel costs and regional economic conditions. Through these diverse operations, UTair crafts a business model that leans heavily on adaptability and sector-spanning expertise.

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UTAR Intrinsic Value

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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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Aviakompaniya UTair PAO
MOEX:UTAR