Operating Margin

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Price: 15.23 USD 1.74% Market Closed

Market Cap: $21.5B

15.6%

Improving

by 2.4%

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

15.6%

Operating Income

€718.6m

Revenue

€4.6B

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

15.6%

Operating Income

$718.6m

Revenue

€4.6B

Peer Comparison

Country	Company	Market Cap	Operating Margin
ES	Cellnex Telecom SA MAD:CLNX	17.6B EUR	Loading...
US	AT&T Inc NYSE:T	167.7B USD	Loading...
US	Verizon Communications Inc NYSE:VZ	166.6B USD	Loading...
DE	Deutsche Telekom AG XETRA:DTE	132.3B EUR	Loading...
JP	Nippon Telegraph and Telephone Corp TSE:9432	12.9T JPY	Loading...
CN	China Telecom Corp Ltd SSE:601728	532.6B CNY	Loading...
SG	Singapore Telecommunications Ltd SGX:Z74	73.6B SGD	Loading...
SA	Saudi Telecom Company SJSC SAU:7010	189.1B SAR	Loading...
FR	Orange SA PAR:ORA	40.5B EUR	Loading...
CH	Swisscom AG SIX:SCMN	31.5B CHF	Loading...
AU	Telstra Corporation Ltd ASX:TLS	53.7B AUD	Loading...

Market Distribution

Min	-2 951.2%
30th Percentile	4.9%
Median	12%
70th Percentile	19.6%
Max	143.7%

Other Profitability Ratios

Cellnex Telecom SA
Glance View

Economic Moat

None

Market Cap

21.5B USD

Industry

Telecommunication

In the bustling world of telecommunications infrastructure, Cellnex Telecom SA has carved out a unique niche, establishing itself as a titan in the field. Born in Spain from the diversification of Abertis Infraestructuras, Cellnex has grown into Europe’s leading operator of wireless telecommunications and broadcasting infrastructures. Its business model is built on owning and operating a vast network of telecommunications towers, fiber networks, and rooftop antennas that are leased to mobile network operators. This setup enables these companies to expand their signal coverage without incurring the significant capital expenditure associated with building and maintaining such infrastructures. By positioning itself as a critical intermediary, Cellnex enhances connectivity across the continent, facilitating the global push for faster and more reliable connections. The revenue model of Cellnex is largely subscription-based, characterized by long-term contracts with mobile operators which provide a stable and predictable cash flow. This financial foundation is further strengthened as the company continually expands its portfolio, which now spans several countries across Europe, including Italy, France, the Netherlands, and the UK. By acquiring and investing in new sites and upgrading existing ones, Cellnex ensures its infrastructure meets the evolving demands of 5G technology and other next-generation wireless services. Such strategic maneuvers not only solidify its revenue streams but also reinforce its position as an indispensable player within the telecommunications ecosystem, providing both the backbone and the flexibility required in an increasingly connected world.

View CLLNY Analysis

CLLNY Intrinsic Value

Overvaluation 38%

Intrinsic Value

Price

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.

Cellnex Telecom SA
OTC:CLLNY

Peer Comparison

Market Distribution

Other Profitability Ratios

Cellnex Telecom SA
Glance View

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Cellnex Telecom SA OTC:CLLNY