Operating Margin

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Price: 10.76 USD 1.51% Market Closed

Market Cap: $13.8B

2.6%

No historical data

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

2.6%

Operating Income

€1.3B

Revenue

€5.6B

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

2.6%

Operating Income

$1.3B

Revenue

€5.6B

Peer Comparison

Country	Company	Market Cap	Operating Margin
IT	Prada SpA HKEX:1913	106.9B HKD	Loading...
FR	LVMH Moet Hennessy Louis Vuitton SE PAR:MC	293.4B EUR	Loading...
FR	Hermes International SCA PAR:RMS	223.3B EUR	Loading...
KR	SBW KRX:102280	235.5T KRW	Loading...
FR	EssilorLuxottica SA PAR:EL	122.3B EUR	Loading...
FR	Christian Dior SE PAR:CDI	99.1B EUR	Loading...
CH	Compagnie Financiere Richemont SA SIX:CFR	91.1B CHF	Loading...
FR	Kering SA PAR:KER	33.8B EUR	Loading...
IN	Titan Company Ltd NSE:TITAN	3.6T INR	Loading...
DE	Adidas AG XETRA:ADS	25.7B EUR	Loading...
CN	ANTA Sports Products Ltd HKEX:2020	216.3B HKD	Loading...

Market Distribution

Min	-79 476%
30th Percentile	3.9%
Median	8.7%
70th Percentile	14.4%
Max	813.7%

Other Profitability Ratios

Prada SpA
Glance View

Economic Moat

Narrow

Market Cap

13.8B USD

Industry

Textiles, Apparel & Luxury Goods

In the glamorous heart of the luxury fashion world, Prada SpA stands as a beacon of Italian elegance and innovation. Founded in 1913 by Mario Prada in Milan, the brand began as a purveyor of leather goods and quickly rose to prominence. However, it was the strategic vision of Miuccia Prada, Mario's granddaughter, that transformed the company into a global fashion powerhouse. Her eye for avant-garde design and collaborative approach with top-tier designers have continually refreshed the brand's offerings, ensuring its relevance over decades. Prada's business model thrives on exclusivity and a careful curation of high-end products, including ready-to-wear collections, leather handbags, footwear, and accessories. This meticulous attention to craftsmanship and quality appeals to an affluent customer base that seeks not just luxurious items but a statement of sophisticated identity. Prada SpA operates predominantly through a vertically integrated structure, controlling much of the production and distribution processes to maintain the integrity of its products. With an extensive retail network, Prada's flagship stores are strategically located in iconic fashion districts across the globe, serving as both shopping destinations and brand showrooms. Beyond its physical stores, the company has invested in digital platforms, enhancing its e-commerce capabilities to reach a broader audience. Additionally, Prada's astute marketing strategies often involve collaborations with artists and designers, breathing new life into its collections and strengthening brand allure. Revenue flows primarily from direct sales to consumers through these channels, complemented by wholesale operations and licensing agreements, ensuring a diversified income stream that supports its continual growth in the luxury sector.

View PRDSY Analysis

PRDSY Intrinsic Value

Undervaluation 35%

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.

Prada SpA
OTC:PRDSY

Peer Comparison

Market Distribution

Other Profitability Ratios

Prada SpA
Glance View

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Prada SpA OTC:PRDSY