Operating Margin - ITV PLC (OTC:ITVPY)

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Price: 11.45 USD 4%

Market Cap: 4.5B USD

9.4%

Current

13%

Average

2.2%

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

9.4%

Operating Profit

327m

Revenue

3.5B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
UK		ITV PLC LSE:ITV	3B GBP	9%
US		Fox Corp NASDAQ:FOXA	32.7B USD	20%
US	V	ViacomCBS Inc LSE:0A65	24.3B USD	8%
US		Paramount Global NASDAQ:PARA	7.4B USD	9%
LU		RTL Group SA XETRA:RRTL	5.2B EUR	8%
JP	N	Nippon Television Holdings Inc TSE:9404	969.6B JPY	14%
US		Nexstar Media Group Inc NASDAQ:NXST	6.1B USD	20%
JP		TBS Holdings Inc TSE:9401	916.1B JPY	5%
JP		Fuji Media Holdings Inc TSE:4676	839.1B JPY	-2%
ID		Elang Mahkota Teknologi Tbk PT IDX:EMTK	67.9T IDR	6%
FR	C	Canal+ SA LSE:CAN	2.6B GBP	6%

ITV PLC
Glance View

Economic Moat

None

Market Cap

4.5B USD

Industry

Media

In the sprawling landscape of British media, ITV PLC emerges as a stalwart, etching its presence deeply into the cultural and economic fabric of the UK. Born out of a necessity to break the monopoly of public broadcasting in the mid-1950s, ITV swiftly captured the public's imagination with its compelling narratives and diverse programming. Over the years, it has evolved from merely a television network to a sprawling media conglomerate. By consistently producing beloved dramas, gripping reality shows, and robust news programming, ITV has managed to cement its reputation as a household name. The company leverages its creative prowess to generate significant advertising revenue, as advertisers eagerly seek to place their brands before millions of loyal viewers that ITV's diverse content attracts. This strategic focus on engaging content creation not only captivates audiences but serves as a magnet for partners and advertisers alike. Beyond traditional broadcast avenues, ITV has adeptly maneuvered into the digital age, amplifying its revenue streams through various platforms. The launch of ITV Hub allowed the company to tap into the burgeoning demand for on-demand content, keeping pace with global digital trends. This strategic diversification extends to its production arm, ITV Studios, which produces content for other networks and streaming services, both domestically and internationally. By selling its programs and formats globally, ITV not only cushions itself against the volatility of advertising revenue but also capitalizes on a steady influx of international profits. In essence, ITV's business model thrives on a dual approach: commanding a strong presence in both advertising and content production, thereby weaving a resilient financial tapestry that sustains its growth in an ever-evolving media ecosystem.

View ITVPY Analysis

ITVPY 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.

US	Johnson & Johnson NYSE:JNJ	Pharmaceuticals
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

	Johnson & Johnson NYSE:JNJ	US
	Berkshire Hathaway Inc NYSE:BRK.A	US
	Bank of America Corp NYSE:BAC	US
	Mastercard Inc NYSE:MA	US
	UnitedHealth Group Inc NYSE:UNH	US
	Exxon Mobil Corp NYSE:XOM	US
	Pfizer Inc NYSE:PFE	US
	Palantir Technologies Inc NYSE:PLTR	US
	Nike Inc NYSE:NKE	US
	Visa Inc NYSE:V	US
	Alibaba Group Holding Ltd NYSE:BABA	CN
	JPMorgan Chase & Co NYSE:JPM	US
	Coca-Cola Co NYSE:KO	US
	Walmart Inc NYSE:WMT	US
	Verizon Communications Inc NYSE:VZ	US
	Chevron Corp NYSE:CVX	US

	Johnson & Johnson NYSE:JNJ	206.28 USD -0.5%
	Berkshire Hathaway Inc NYSE:BRK.A	750 093.39 USD 0.01%
	Bank of America Corp NYSE:BAC	56.13 USD 0.45%
	Mastercard Inc NYSE:MA	577.64 USD 0.34%
	UnitedHealth Group Inc NYSE:UNH	326.04 USD 0.27%
	Exxon Mobil Corp NYSE:XOM	119.02 USD 0.74%

	Franklin Covey Co NYSE:FC	17 USD 0.71%
	Mohawk Industries Inc NYSE:MHK	107.95 USD -0.58%
	Ardmore Shipping Corp NYSE:ASC	10.65 USD -1.3%
	ASGN Inc NYSE:ASGN	49.06 USD 0.53%
	Skyworks Solutions Inc NASDAQ:SWKS	64.83 USD -0.63%
	Weatherford International PLC NASDAQ:WFRD	80.47 USD 2.08%

	Johnson & Johnson NYSE:JNJ	206.28 USD -0.5%
	Bank of America Corp NYSE:BAC	56.13 USD 0.45%
	Mastercard Inc NYSE:MA	577.64 USD 0.34%
	Salesforce Inc NYSE:CRM	262.02 USD -0.99%
	Abbvie Inc NYSE:ABBV	230.34 USD 1.07%
	Home Depot Inc NYSE:HD	344.97 USD -0.41%

ITV PLC
OTC:ITVPY