Operating Margin - Pfizer Ltd (NSE:PFIZER)

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Price: 5 000.2 INR -0.15%

Market Cap: 228.8B INR

31.7%

Current

28%

Average

6.2%

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

31.7%

Operating Profit

7.5B

Revenue

23.8B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
IN		Pfizer Ltd NSE:PFIZER	228.7B INR	32%
US		Eli Lilly and Co NYSE:LLY	954.7B USD	44%
UK		Dechra Pharmaceuticals PLC LSE:DPH	440.4B GBP	3%
US		Johnson & Johnson NYSE:JNJ	505.3B USD	27%
CH		Roche Holding AG SIX:ROG	250.5B CHF	34%
UK		AstraZeneca PLC LSE:AZN	208.8B GBP	24%
CH		Novartis AG SIX:NOVN	202.1B CHF	33%
US		Merck & Co Inc NYSE:MRK	246.3B USD	38%
DK		Novo Nordisk A/S CSE:NOVO B	1.4T DKK	42%
IE	E	Endo International PLC LSE:0Y5F	206B USD	11%
US		Pfizer Inc NYSE:PFE	146.7B USD	29%

Pfizer Ltd
Glance View

Economic Moat

None

Market Cap

228.7B INR

Industry

Pharmaceuticals

Pfizer Ltd., a giant in the pharmaceutical industry, has woven its identity deeply into the fabric of healthcare innovation. Established initially to create chemical compounds, it evolved into a pharmaceutical pioneer through a series of strategic developments and acquisitions. Headquartered in New York, the company has a sprawling international presence, with an intricate network of research facilities, manufacturing plants, and marketing offices spread across the globe. This global footprint empowers Pfizer to leverage diverse talent and resources, driving innovation and efficiency. At the core of Pfizer’s operations is its research and development engine, a crucial element that churns out new medicines and therapies. By investing heavily in R&D, absorbing over $8 billion annually, the company relentlessly pursues breakthroughs in areas such as oncology, vaccines, rare diseases, and primary care, consistently bringing advanced treatments from laboratories to clinics. The way Pfizer sustains its financial health is as much about strategic foresight as it is about scientific prowess. Its revenue streams are crafted through a mix of patent-protected pharmaceuticals, consumer health products, and vaccines. The blockbuster drug era, epitomized by the success of Lipitor, showcased its capability to capture market leadership efficiently. More recently, Pfizer's collaboration with BioNTech on the COVID-19 vaccine highlighted its agility and strategic partnerships. Such initiatives solidify its position in the market and open lucrative opportunities. Beyond products, Pfizer employs a robust marketing strategy and leverages an extensive distribution network to ensure these innovations reach a global clientele efficiently. Through a combination of smart financial management, cutting-edge research, and decisive partnerships, Pfizer Ltd. has positioned itself as a towering figure in the pharmaceutical landscape, capable of responding to global health challenges while ensuring sustainable growth.

View PFIZER Analysis

PFIZER 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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US	UnitedHealth Group Inc NYSE:UNH	Health Care
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US	Pfizer Inc NYSE:PFE	Pharmaceuticals
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Pfizer Ltd
NSE:PFIZER