Operating Margin - Joby Aviation Inc (NYSE:JOBY)

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Price: 14.85 USD -4.56%

Market Cap: 13.5B USD

-2 926.6%

Current

-141 758.5%

Average

5.1%

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

-2 926.6%

Operating Profit

-662.7m

Revenue

22.6m

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US		Joby Aviation Inc NYSE:JOBY	13B USD	-2 927%
US		Delta Air Lines Inc NYSE:DAL	45.6B USD	10%
US		United Airlines Holdings Inc NASDAQ:UAL	34.6B USD	9%
UK		International Consolidated Airlines Group SA LSE:IAG	19.3B GBP	12%
CH		Kinarus Therapeutics Holding AG SIX:KNRS	19.5B CHF	N/A
US		Southwest Airlines Co NYSE:LUV	21.6B USD	1%
IE	R	Ryanair Holdings PLC LSE:RYA	15.4B EUR	15%
IN		Interglobe Aviation Ltd NSE:INDIGO	1.9T INR	14%
CN		Air China Ltd SSE:601111	146B CNY	0%
CN		China Southern Airlines Co Ltd SSE:600029	125.4B CNY	4%
CL		LATAM Airlines Group SA SGO:LTM	14.8T CLP	14%

Joby Aviation Inc
Glance View

Economic Moat

None

Market Cap

13B USD

Industry

Airlines

Joby Aviation Inc., an ambitious player in the burgeoning field of electric vertical takeoff and landing (eVTOL) aircraft, is a Silicon Valley-based company that has set its sights on revolutionizing urban air mobility. Founded in 2009 by JoeBen Bevirt, the company is developing an all-electric air taxi with a unique tilt-propeller design, which offers a promising combination of speed and efficiency. Joby seeks to address urban congestion and offer a cleaner, quieter alternative to traditional aviation. Driven by innovation, its eVTOL aircraft are designed to be as quiet as a conversation—over 100 times quieter than traditional helicopters—making them suitable for operations within cities. The company's primary goal is to create a transportation service that is efficient, safe, and environmentally friendly, with a vision that extends into the skies as a potentially transformative mode of urban transport. Joby's business model hinges on manufacturing and operating its fleet of eVTOL aircraft to offer a comprehensive aerial ride-sharing service. This integration of manufacturing and service provision is a strategic move designed to optimize operational efficiencies and maintain quality control. Joby aims to generate revenue through these urban air taxi operations, essentially building an aerial version of ride-hailing platforms that have transformed ground transportation. Having secured substantial funding and made strategic partnerships, including a notable alliance with Toyota, Joby is positioning itself not just as an innovator in aircraft technology, but as a budding leader in a new frontier of urban mobility. As the company navigates regulatory pathways and scaling challenges, its success will likely hinge on adept execution of this dual strategy—creating cutting-edge vehicles and operating them as a scalable service.

View JOBY Analysis

JOBY 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.

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Joby Aviation Inc
NYSE:JOBY