Operating Margin

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Price: 4.96 NZD 2.48% Market Closed

Market Cap: NZ$5B

34.4%

Improving

by 3.4%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

34.4%

Operating Income

NZ$380.2m

Revenue

NZ$1.1B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

34.4%

Operating Income

NZ$380.2m

Revenue

NZ$1.1B

Peer Comparison

Country		Company	Market Cap	Operating Margin
NZ		Vector Ltd NZX:VCT	4.8B NZD	Loading...
UK		National Grid PLC LSE:NG	59.7B GBP	Loading...
FR		Engie SA PAR:ENGI	59.2B EUR	Loading...
US		Sempra Energy NYSE:SRE	56.5B USD	Loading...
DE		E.ON SE XETRA:EOAN	45.3B EUR	Loading...
US		Dominion Energy Inc NYSE:D	51.6B USD	Loading...
US	S	Sempra VSE:SREN	43.4B EUR	Loading...
DE		RWE AG XETRA:RWE	37.8B EUR	Loading...
US		Public Service Enterprise Group Inc NYSE:PEG	39.5B USD	Loading...
US		Consolidated Edison Inc NYSE:ED	37.8B USD	Loading...
DE		E ON SE MIL:EOAN	31.3B EUR	Loading...

Market Distribution

Min	-1 380.2%
30th Percentile	2.6%
Median	8.5%
70th Percentile	15.6%
Max	98.6%

Other Profitability Ratios

Vector Ltd
Glance View

Market Cap

5B NZD

Industry

Utilities

Founded in New Zealand, Vector Ltd is a notable player in the energy and utilities sector, carving its niche by managing electricity and gas distribution services. This Auckland-based company has honed its focus on providing infrastructure that supports the regions where it operates, significantly impacting the energy supply chain. Vector's operations revolve around managing the logistics of power distribution and creating a seamless experience for its clientele, from utility companies to end consumers. By overseeing an extensive network of electricity lines and gas pipelines, Vector ensures that these essential resources reach both urban and remote areas efficiently, thus playing a crucial role in keeping the literal and metaphorical lights on in New Zealand homes and businesses. To generate revenue, Vector employs a business model that capitalizes on its robust infrastructure framework and partnerships. This model isn't just about traditional energy distribution; Vector has also embraced new energy solutions such as solar and battery storage systems along with smart meters that offer data-driven insights. These innovations not only provide more efficient energy solutions but also open up diversified income streams for the company. Additionally, Vector's investment in technology further extends into services for maintaining infrastructure and providing energy solutions that align with modern demands for sustainability and efficiency. By integrating these contemporary approaches with their established operations, Vector effectively positions itself not just as a utility service provider, but also as a forward-thinking energy solutions company.

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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.

Vector Ltd
NZX:VCT

Peer Comparison

Market Distribution

Other Profitability Ratios

Vector Ltd
Glance View

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Vector Ltd NZX:VCT