Operating Margin

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Price: 20.93 USD -1.04% Market Closed

Market Cap: 2.1B USD

13.9%

Declining

by 2.2%

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

13.9%

Operating Income

$201m

Revenue

$1.4B

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

13.9%

Operating Income

$201m

Revenue

$1.4B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US	S	Simply Good Foods Co NASDAQ:SMPL	2B USD	Loading...
JP	G	Goyo Foods Industry Co Ltd TSE:2230	53.2T JPY	Loading...
CH		Nestle SA SIX:NESN	188.9B CHF	Loading...
US		Mondelez International Inc NASDAQ:MDLZ	73.9B USD	Loading...
FR		Danone SA PAR:BN	47.6B EUR	Loading...
ZA	T	Tiger Brands Ltd JSE:TBS	53.3B Zac	Loading...
US		Hershey Co NYSE:HSY	40.1B USD	Loading...
CN		Muyuan Foods Co Ltd SZSE:002714	258.3B CNY	Loading...
ZA	A	Avi Ltd JSE:AVI	35.6B Zac	Loading...
CH		Chocoladefabriken Lindt & Spruengli AG SIX:LISN	26.6B CHF	Loading...
CN		Foshan Haitian Flavouring and Food Co Ltd SSE:603288	216.5B CNY	Loading...

Market Distribution

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

Other Profitability Ratios

Simply Good Foods Co
Glance View

Economic Moat

None

Market Cap

2.1B USD

Industry

Food Products

Simply Good Foods Co. embodies the spirit of innovation within the food industry, carving out its niche by focusing on dietary trends that have swept across the globe. Founded in 2017, the company quickly positioned itself as a leader in the realm of nutritional snacks and meal replacements. It capitalizes predominantly on the growing demand for low-carb, high-protein, and healthier eating options. By acquiring well-known brands such as Atkins and Quest Nutrition, Simply Good Foods Co. has cemented its place in the market, offering products that cater to consumers seeking convenient yet health-conscious alternatives. This strategic move not only broadened its product line but also enhanced its market reach, tapping into the wellness-driven consumer segment. The company's business model is underpinned by a robust supply chain and dynamic marketing strategies that emphasize consumer trends and preferences. By leveraging these insights, Simply Good Foods Co. produces and distributes a wide range of products, from bars and shakes to snack offerings, through both retail and online platforms. Partnerships with large retailers ensure their products are visible on supermarket shelves, while an astute online presence caters to the e-commerce boom. Revenue is primarily generated through the sales of these diverse product lines, which enjoy premium pricing due to their specialized nature. By maintaining a laser focus on the health-conscious market and reinforcing brand loyalty through quality and innovation, Simply Good Foods Co. thrives in an industry that consistently appetizes for forward-thinking approaches to nutrition.

View SMPL Analysis

SMPL Intrinsic Value

Undervaluation 41%

Intrinsic Value

Price

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.

Simply Good Foods Co
NASDAQ:SMPL

Peer Comparison

Market Distribution

Other Profitability Ratios

Simply Good Foods Co
Glance View

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Simply Good Foods Co NASDAQ:SMPL