Operating Margin

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Price: 11.51 USD 2.31% Market Closed

Market Cap: 11.5B USD

10.8%

Declining

by 0.4%

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

10.8%

Operating Income

kr7.7B

Revenue

kr71.6B

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

10.8%

Operating Income

$7.7B

Revenue

kr71.6B

Peer Comparison

Country		Company	Market Cap	Operating Margin
NO		Orkla ASA OSE:ORK	112.6B NOK	Loading...
JP	G	Goyo Foods Industry Co Ltd TSE:2230	53.2T JPY	Loading...
CH		Nestle SA SIX:NESN	185.1B CHF	Loading...
US		Mondelez International Inc NASDAQ:MDLZ	74.3B USD	Loading...
ZA	T	Tiger Brands Ltd JSE:TBS	542m ZAR	Loading...
FR		Danone SA PAR:BN	43.9B EUR	Loading...
US		Hershey Co NYSE:HSY	38.7B USD	Loading...
ZA	A	Avi Ltd JSE:AVI	359.9m ZAR	Loading...
CN		Muyuan Foods Co Ltd SZSE:002714	249.6B CNY	Loading...
CH		Chocoladefabriken Lindt & Spruengli AG SIX:LISN	26.2B CHF	Loading...
CN		Foshan Haitian Flavouring and Food Co Ltd SSE:603288	212B CNY	Loading...

Market Distribution

Min	-3 055 100%
30th Percentile	-3.7%
Median	1.8%
70th Percentile	6.8%
Max	784.1%

Other Profitability Ratios

Orkla ASA
Glance View

Market Cap

11.5B USD

Industry

Food Products

Orkla ASA, headquartered in Oslo, Norway, is a conglomerate with a diversified operational scope that primarily focuses on branded consumer goods. With its roots tracing back to 1654 in the form of a mining company, Orkla has evolved significantly over the centuries. Today, its business model revolves around acquiring and nurturing household brands, particularly in the food and beverage sector, with a strong presence in the Nordic region, the Baltics, and selected areas in Central Europe and India. The company has also expanded into personal care, snacks, confectionery, and health products, leveraging a keen understanding of consumer preferences to sustain its growth. What differentiates Orkla in the competitive landscape is its strategic emphasis on sustainability and innovation, ensuring that its offerings not only resonate with consumer demands but also align with global sustainability trends. Through a deft orchestration of acquisitions and organic growth, Orkla not only ensures a robust portfolio but also secures a substantial distribution network across varied markets. This allows the company to capitalize on economies of scale and scope, enhancing its operational efficiency and market presence. By focusing on local brand loyalty and adapting its products to fit regional tastes, Orkla effectively captures a significant share of consumer spending. The breadth of its product range, coupled with effective marketing and distribution strategies, translates into consistent revenue streams. Furthermore, its commitment to continuous product development and diversification into adjacent categories helps mitigate market fluctuations, ensuring long-term profitability and growth. This approach has positioned Orkla as a resilient player in the consumer goods industry, adapting to shifts in market dynamics while maintaining a steadfast focus on delivering value.

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ORKLY Intrinsic Value

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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.

Orkla ASA
OTC:ORKLY

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Orkla ASA
Glance View

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Orkla ASA OTC:ORKLY