Operating Margin

Watchlist Manager

Watchlist

Price: 38.49 USD Market Closed

Market Cap: $9.6B

7.1%

Declining

by 2.1%

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

7.1%

Operating Income

$432m

Revenue

$6.1B

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

7.1%

Operating Income

$432m

Revenue

$6.1B

Peer Comparison

Country	Company	Market Cap	Operating Margin
US	Frontier Communications Parent Inc NASDAQ:FYBR	9.6B USD	Loading...
US	AT&T Inc NYSE:T	167.7B USD	Loading...
US	Verizon Communications Inc NYSE:VZ	166.6B USD	Loading...
DE	Deutsche Telekom AG XETRA:DTE	131.7B EUR	Loading...
JP	Nippon Telegraph and Telephone Corp TSE:9432	12.9T JPY	Loading...
CN	China Telecom Corp Ltd SSE:601728	532.6B CNY	Loading...
SG	Singapore Telecommunications Ltd SGX:Z74	73.6B SGD	Loading...
SA	Saudi Telecom Company SJSC SAU:7010	189.1B SAR	Loading...
FR	Orange SA PAR:ORA	40.1B EUR	Loading...
CH	Swisscom AG SIX:SCMN	31.5B CHF	Loading...
AU	Telstra Corporation Ltd ASX:TLS	53.7B AUD	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Frontier Communications Parent Inc
Glance View

Economic Moat

None

Market Cap

9.6B USD

Industry

Telecommunication

Frontier Communications Parent Inc. has been navigating the evolving landscape of telecommunications with a focus on serving more rural and suburban communities across the United States. Originally known as a regional phone company, Frontier has transitioned over the years into a significant player in providing broadband connectivity. Its business model primarily revolves around offering internet services, which includes both fiber-optic and digital subscriber line (DSL) technologies. The company aims to address the "digital divide" by enhancing internet access in underserved areas, a strategy that not only fulfills a societal need but also taps into a steady revenue stream from broadband subscriptions. In essence, Frontier generates its income from residential and business subscriptions. For residential customers, the emphasis is on bundling services like high-speed internet, television, and phone services to maximize value and customer retention. On the business side, Frontier caters to small and medium enterprises by offering tailored solutions such as secure internet connections and data management services. The transition from traditional phone services to digital offerings is part of Frontier’s broader strategy to reinvent itself amidst a competitive telecommunications sector. By leveraging its established infrastructure and expanding its fiber network, the company is positioning itself to capture a larger share of the broadband market, ensuring sustained growth and relevance in an increasingly connected world.

View FYBR Analysis

FYBR Intrinsic Value

Show

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.

Frontier Communications Parent Inc
NASDAQ:FYBR

Peer Comparison

Market Distribution

Other Profitability Ratios

Frontier Communications Parent Inc
Glance View

See Also

Company

Help

Tools

Stocks

52 Week Range	35.51 38.49
Price Target

Frontier Communications Parent Inc NASDAQ:FYBR