Operating Margin - Goldman Sachs Group Inc (NYSE:GS)

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Price: 872.33 USD -0.78%

Market Cap: 261.6B USD

16.7%

Current

15%

Average

24.1%

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

16.7%

Operating Profit

21.3B

Revenue

127.2B

Operating Margin Across Competitors

Country	Company	Market Cap	Operating Margin
US	Goldman Sachs Group Inc NYSE:GS	264.1B USD	17%
US	Morgan Stanley NYSE:MS	278.1B USD	18%
US	Charles Schwab Corp NYSE:SCHW	172.6B USD	39%
EG	EFG Hermes Holdings SAE LSE:EFGD	167.9B USD	0%
US	Interactive Brokers Group Inc NASDAQ:IBKR	105.9B USD	45%
US	Robinhood Markets Inc NASDAQ:HOOD	104.1B USD	48%
CN	CITIC Securities Co Ltd SSE:600030	429.4B CNY	50%
CN	Guotai Junan Securities Co Ltd SSE:601211	366.2B CNY	49%
US	Raymond James Financial Inc NYSE:RJF	31.7B USD	17%
CN	Huatai Securities Co Ltd SSE:601688	213.8B CNY	50%
CN	China Securities Co Ltd SSE:601066	213.2B CNY	53%

Goldman Sachs Group Inc
Glance View

Economic Moat

Narrow

Market Cap

264.1B USD

Industry

Financial Services

Once upon a time on the bustling streets of Manhattan, a small venture founded by Marcus Goldman in 1869 grew to become one of the most influential financial powerhouses in the world—Goldman Sachs Group Inc. This firm initially made its mark by pioneering commercial paper in the United States, providing a vital source of liquidity in the burgeoning economy. Fast forward to today, Goldman Sachs stands as a titan in the global financial landscape, engaged in a wide array of services such as investment banking, securities, investment management, and consumer banking. It serves a diverse clientele that includes corporations, financial institutions, governments, and high-net-worth individuals. Through its strategic advisory services, Goldman Sachs plays a pivotal role in orchestrating some of the world's most significant mergers and acquisitions, capital raises, and restructurings. In the intricate dance of financial markets, Goldman Sachs thrives by leveraging its vast expertise in market-making. This involves buying and selling securities to provide liquidity and facilitating trades for clients across different asset classes, including equities, fixed income, currency, and commodities. Its asset management division generates revenue by collecting fees for managing client assets, steering through volatile market conditions with a blend of experience and innovation. The firm's ability to identify and adapt to market trends, coupled with its expansive global reach, enables it to capitalize on opportunities in both emerging and developed markets. As Goldman Sachs navigates the complexities of modern finance, it continues to emphasize risk management and regulatory compliance, ensuring its enduring position as a cornerstone of the global financial system. Through these multifaceted operations, Goldman Sachs not only generates substantial profits but also leaves an indelible impact on the financial architecture of the global economy.

View GS Analysis

GS 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.

US	Johnson & Johnson NYSE:JNJ	Pharmaceuticals
US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

N	Nexters Inc NASDAQ:GDEV	16.49 USD 2.65%
S	Simcorp A/S CSE:SIM	730.5 DKK 0.21%
	McPherson's Ltd ASX:MCP	0.225 AUD

	Johnson & Johnson NYSE:JNJ	210.33 USD 0.49%
	Berkshire Hathaway Inc NYSE:BRK.A	756 120.01 USD 0.93%
	Bank of America Corp NYSE:BAC	54.55 USD -0.47%
	Mastercard Inc NYSE:MA	565.47 USD -0.1%
	UnitedHealth Group Inc NYSE:UNH	331.63 USD -0.77%
	Exxon Mobil Corp NYSE:XOM	117.41 USD 2.38%

	Franklin Covey Co NYSE:FC	16.73 USD 2.58%
	Mohawk Industries Inc NYSE:MHK	109.2 USD -1%
	Ardmore Shipping Corp NYSE:ASC	11.14 USD -0.18%
	ASGN Inc NYSE:ASGN	48.73 USD 2.05%
	Skyworks Solutions Inc NASDAQ:SWKS	65 USD -1.54%
	Weatherford International PLC NASDAQ:WFRD	77.405 USD 1.54%

	Johnson & Johnson NYSE:JNJ	210.33 USD 0.49%
	Bank of America Corp NYSE:BAC	54.55 USD -0.47%
	Mastercard Inc NYSE:MA	565.47 USD -0.1%
	Salesforce Inc NYSE:CRM	258.14 USD 1.27%
	Abbvie Inc NYSE:ABBV	224.31 USD 0.29%
	Home Depot Inc NYSE:HD	356.75 USD 1.15%

Goldman Sachs Group Inc
NYSE:GS