Operating Margin - Smurfit WestRock PLC (NYSE:SW)

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Price: 37.54 USD 0.94%

Market Cap: 19.6B USD

Current

Average

4.9%

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

Operating Profit

3.1B

Revenue

44.7B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
IE		Smurfit WestRock PLC NYSE:SW	19.6B USD	7%
CN		Zhejiang Zhongxin Environmental Protection Technology Group Co Ltd SSE:603091	7.4B CNY	21%
ID		Fajar Surya Wisesa Tbk PT IDX:FASW	12.1T IDR	-7%
CN	Z	ZRP Printing Group Co Ltd SZSE:301223	3.4B CNY	6%
US	E	Eightco Holdings Inc NASDAQ:OCTO	453.3m USD	-17%
CN	F	Fujian Nanwang Environment Protection Scien-tech Co Ltd SZSE:301355	2.5B CNY	0%
IN		EPack Prefab Technologies Ltd NSE:EPACKPEB	29.2B INR	N/A
CN	S	Shandong Newjf Technology Packaging Co Ltd SZSE:301296	1.7B CNY	10%
ID		Panca Budi Idaman Tbk PT IDX:PBID	3.6T IDR	10%
ID	P	PT Solusi Kemasan Digital Tbk IDX:PACK	3.1T IDR	8%
ID		Alkindo Naratama Tbk PT IDX:ALDO	2T IDR	3%

Smurfit WestRock PLC
Glance View

Economic Moat

None

Market Cap

19.6B USD

Industry

Packaging

Smurfit WestRock PLC emerges as a formidable new player in the global packaging industry, born from the strategic merger of Smurfit Kappa Group and WestRock Company. This union combines European and American expertise to create one of the largest packaging companies worldwide, seamlessly integrating their operations to harness efficiencies in production and distribution. The company specializes in manufacturing corrugated packaging products, containerboard, and paperboard, all crucial for packaging solutions across diverse industries. By leveraging advanced technology and focusing on sustainable practices, Smurfit WestRock caters to the rising demand for eco-friendly packaging, positioning the organization as a leader in an increasingly environmentally-conscious market. The merged entity operates an extensive network of mills and converting plants scattered across various continents, enabling it to efficiently supply its diversified product portfolio. With roots firmly planted in both Europe and the United States, Smurfit WestRock benefits from a robust supply chain and a broad customer base that includes e-commerce giants, consumer goods manufacturers, and the food and beverage sector. Revenue streams flow primarily from the production and sale of packaging solutions, while efficiencies achieved through consolidation and economies of scale enhance profitability. The company's commitment to innovation, coupled with its strategic geographical footprint, allows it to effectively respond to global market trends, ensuring profitability and a resilient market position.

View SW Analysis

SW 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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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

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	Bank of America Corp NYSE:BAC	55.315 USD -0.03%
	Mastercard Inc NYSE:MA	567.285 USD -0.32%
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Smurfit WestRock PLC
NYSE:SW