Operating Margin - Minerals Technologies Inc (NYSE:MTX)

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Price: 60.76 USD 0.35%

Market Cap: 1.9B USD

3.9%

Current

10%

Average

5.9%

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

3.9%

Operating Profit

79.8m

Revenue

2.1B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US		Minerals Technologies Inc NYSE:MTX	1.9B USD	4%
US		Sherwin-Williams Co NYSE:SHW	80.6B USD	16%
US		Ecolab Inc NYSE:ECL	75.7B USD	18%
JP		Shin-Etsu Chemical Co Ltd TSE:4063	9.1T JPY	25%
CH		Givaudan SA SIX:GIVN	28.9B CHF	19%
CN		Wanhua Chemical Group Co Ltd SSE:600309	237.2B CNY	9%
IN		Asian Paints Ltd NSE:ASIANPAINT	2.7T INR	15%
DK		Novozymes A/S CSE:NZYM B	165.6B DKK	25%
CH		Sika AG F:SIKA	19.9B EUR	15%
US		PPG Industries Inc NYSE:PPG	23.2B USD	15%
CH	D	DSM-Firmenich AG AEX:DSFIR	18.4B EUR	4%

Minerals Technologies Inc
Glance View

Economic Moat

None

Market Cap

1.9B USD

Industry

Chemicals

In the bustling heart of the industrial sector, Minerals Technologies Inc. (MTI) crafts a unique narrative of innovation and tradition, intertwining the basic and the advanced to fuel modern industry. Founded in 1992, MTI emerged from a corporate spin-off, evolving from the storied lineage of Pfizer. The company has since specialized in the production and processing of minerals, not least among them, precipitated calcium carbonate (PCC), which is renowned for enhancing the brightness and quality of paper. This expertise forms the backbone of its Performance Materials segment, which contributes a significant chunk to its revenue by catering to a diverse range of industries, from paper manufacturing to paints and coatings. MTI extends its prowess beyond earth minerals into the realm of green technology through its Refractory segment, supplying essential materials that optimize the efficiency of high-temperature industrial processes, particularly in the steel industry. Meanwhile, MTI's Specialty Minerals sector digs deeper into innovation, providing value-added mineral-based products even to the consumer sector. Their innovative EDGE technology optimizes the use of PCC in papermaking, a testament to MTI’s commitment to sustainable and economically beneficial solutions. Additionally, MTI harnesses the science of bentonite—a naturally occurring clay—to enhance environmental health through purification and filtration applications. The company also ventures into the health and beauty arena with talc products, delivering not only industrial benefits but also stepping into the consumer market with personal care applications. Through these multi-faceted operations, MTI threads a fine line, balancing the demand for traditional mineral-based products while branching into sustainable practices and high-tech solutions, driving its growth and ensuring its position as a key player in the global materials industry.

View MTX Analysis

MTX 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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Minerals Technologies Inc
NYSE:MTX