Operating Margin

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Price: 15.65 USD 1.82% Market Closed

Market Cap: $17.4B

6.2%

Improving

by 2%

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

6.2%

Operating Income

R$27.3B

Revenue

R$441.9B

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

6.2%

Operating Income

$27.3B

Revenue

R$441.9B

Peer Comparison

Country		Company	Market Cap	Operating Margin
BR		JBS SA BOVESPA:JBSS3	86.9B BRL	Loading...
JP	G	Goyo Foods Industry Co Ltd TSE:2230	53.2T JPY	Loading...
CH		Nestle SA SIX:NESN	184.1B CHF	Loading...
US		Mondelez International Inc NASDAQ:MDLZ	74.6B USD	Loading...
FR		Danone SA PAR:BN	42.5B EUR	Loading...
US		Hershey Co NYSE:HSY	39.3B USD	Loading...
CN		Muyuan Foods Co Ltd SZSE:002714	258.8B CNY	Loading...
CH		Chocoladefabriken Lindt & Spruengli AG SIX:LISN	26.2B CHF	Loading...
US	K	Kellanova XMUN:KEL	24.7B EUR	Loading...
CN		Foshan Haitian Flavouring and Food Co Ltd SSE:603288	208.8B CNY	Loading...
US		Kellogg Co NYSE:K	29B USD	Loading...

Market Distribution

Min	-3 343.7%
30th Percentile	7.7%
Median	14.9%
70th Percentile	25.1%
Max	1 269.1%

Other Profitability Ratios

JBS SA
Glance View

Market Cap

17.4B USD

Industry

Food Products

JBS SA, a Brazilian mammoth in the meat processing industry, has carved its niche as one of the world's leading producers of beef, pork, and chicken. Founded in 1953, the company began its journey as a humble butcher shop in Anápolis, and over decades, it expanded aggressively through strategic acquisitions, including key players like Swift Foods and Pilgrim's Pride. This growth strategy not only catapulted JBS into the global market but also diversified its product offerings, enabling it to command a significant share in multiple segments across the food supply chain. The corporate philosophy at JBS hinges on scale and efficiency—two pillars that ensure operational prowess in meat production and distribution. At the core of JBS's business model is a robust vertically integrated supply chain, meticulously designed to manage everything from sourcing livestock to processing and packaging meat products. The myriad plants and facilities dotted across South America, North America, and beyond enable JBS to maintain a steady flow of products while optimizing costs in a historically low-margin industry. By controlling these operational levers, the company is well-positioned to capitalize on fluctuating global demand for protein-based foods. Revenue streams are largely driven by wholesale meat sales to supermarkets, restaurants, and other food retailers; however, JBS also explores value-added product lines and exports as auxiliary income generators. As consumers worldwide continue to prioritize protein-rich diets, JBS remains a formidable force in satiating this ever-increasing appetite.

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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.

JBS SA
OTC:JBSAY

Peer Comparison

Market Distribution

Other Profitability Ratios

JBS SA
Glance View

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JBS SA OTC:JBSAY