Operating Margin

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Price: 7.39 USD

Market Cap: 284.2m USD

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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

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

Peer Comparison

Country		Company	Market Cap	Operating Margin
ZA	A	Astral Foods Ltd JSE:ARL	10B Zac	Loading...
JP	G	Goyo Foods Industry Co Ltd TSE:2230	53.2T JPY	Loading...
CH		Nestle SA SIX:NESN	186B CHF	Loading...
US		Mondelez International Inc NASDAQ:MDLZ	75.1B USD	Loading...
FR		Danone SA PAR:BN	47.3B EUR	Loading...
ZA	T	Tiger Brands Ltd JSE:TBS	53.3B Zac	Loading...
US		Hershey Co NYSE:HSY	40.8B USD	Loading...
CN		Muyuan Foods Co Ltd SZSE:002714	255.9B CNY	Loading...
ZA	A	Avi Ltd JSE:AVI	35.6B Zac	Loading...
CH		Chocoladefabriken Lindt & Spruengli AG SIX:LISN	26B CHF	Loading...
CN		Foshan Haitian Flavouring and Food Co Ltd SSE:603288	215.8B CNY	Loading...

Market Distribution

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Astral Foods Ltd
Glance View

Market Cap

284.2m USD

Industry

Food Products

Astral Foods Ltd., a titan in the South African agri-business landscape, stands as a complex tapestry woven from a century-old heritage and modern agricultural prowess. It began its journey from a modest feed mill operation in the golden mid-20th century, morphing into a behemoth that now commands significant market gravitas in animal feeds, poultry, and other related services. Sitting at the heart of its business model is efficient vertical integration; Astral Foods controls every stage of the poultry production process - from the mix of grains at its feed mills to the processing and distribution of chicken products. This seamless integration allows the company to exercise remarkable cost control while ensuring quality consistency across its product offerings. This approach not only fortifies its supply chain against the vulnerabilities of fluctuating raw material costs but also enhances profit margins by securing economies of scale. The company's financial robustness is significantly fueled by its prowess in poultry production, which is the primary revenue driver. With brands like County Fair and Goldi firmly entrenched in consumer consciousness, Astral Foods reaches both household tables and industrial kitchens across South Africa. Meanwhile, its animal feed division complements this by catering to a broader spectrum of agricultural needs, serving not just its poultry segment but external livestock producers too. The diversified revenue streams ensure a steady cash inflow, even when external challenges such as exchange rate fluctuations or economic downturns arise. Astral Foods’ synergy of operations underscores a narrative of resilience and strategic acumen, making it a stalwart through the labyrinthine corridors of Africa's agricultural sector.

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ALFDF 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.

Astral Foods Ltd
OTC:ALFDF

Peer Comparison

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Astral Foods Ltd
Glance View

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Astral Foods Ltd OTC:ALFDF