Operating Margin

Watchlist Manager

Watchlist

Price: 16.74 USD -0.24% Market Closed

Market Cap: 1.6B USD

4.6%

Declining

by 1.8%

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

4.6%

Operating Income

$33.6m

Revenue

$736.5m

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

4.6%

Operating Income

$33.6m

Revenue

$736.5m

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Sterling Check Corp NASDAQ:STER	1.6B USD	Loading...
JP		Recruit Holdings Co Ltd TSE:6098	12.5T JPY	Loading...
NL	R	Randstad NV AEX:RAND	4.9B EUR	Loading...
US	R	Robert Half Inc SWB:RHJ	3.9B EUR	Loading...
CH	A	Adecco Group AG SIX:ADEN	3.7B CHF	Loading...
CN	5	51job Inc F:IWQ	3.9B EUR	Loading...
JP	P	Persol Holdings Co Ltd TSE:2181	628B JPY	Loading...
US		Korn Ferry NYSE:KFY	3.4B USD	Loading...
PL	B	Benefit Systems SA WSE:BFT	12.3B PLN	Loading...
JP		TechnoPro Holdings Inc TSE:6028	502.9B JPY	Loading...
US		TriNet Group Inc NYSE:TNET	2.9B USD	Loading...

Market Distribution

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

Other Profitability Ratios

Sterling Check Corp
Glance View

Market Cap

1.6B USD

Industry

Professional Services

Sterling Check Corp., an often overlooked yet pivotal player in the modern landscape of human resources, is like the diligent backstage crew in a theater production, ensuring everything runs seamlessly for the main event. Founded in 1975, Sterling has grown into a powerhouse in the background screening and identity verification sector. Its primary role is to provide organizations with the assurance that their potential hires are who they claim to be, thereby mitigating risks that come with recruitment. Sterling achieves this through a combination of cutting-edge technology and methodical processes, delivering Background Screening, Verifications, and Identity Verification services to enterprises of all sizes across multiple industries. Operating in a world increasingly concerned with security and compliance, the company derives its revenues by offering subscription-based services and one-off transactions, making sterling use of a mix of cloud-based solutions and expert-led consultations. Sterling’s business model thrives on the continuous demand from sectors like healthcare, banking, and retail—industries that require stringent employee vetting processes. By providing timely and precise screening results, Sterling doesn't just help its clients adhere to regulatory mandates but also fortify their workforce integrity, thus cementing itself as an indispensible partner in their operational blueprint.

View STER Analysis

STER 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.

Sterling Check Corp
NASDAQ:STER

Peer Comparison

Market Distribution

Other Profitability Ratios

Sterling Check Corp
Glance View

See Also

Company

Help

Tools

Stocks

52 Week Range	N/A N/A
Price Target

Sterling Check Corp NASDAQ:STER