Operating Margin - SBM Offshore NV (OTC:SBFFF)

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Price: 26.85 USD

Market Cap: 4.8B USD

21.5%

Current

21%

Average

6.9%

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

21.5%

Operating Profit

1.2B

Revenue

5.4B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
NL		SBM Offshore NV AEX:SBMO	4.3B EUR	22%
US		Schlumberger NV NYSE:SLB	65.2B USD	17%
US	B	Baker Hughes Co NASDAQ:BKR	48.7B USD	13%
US		Halliburton Co NYSE:HAL	26B USD	14%
LU		Tenaris SA MIL:TEN	17.8B EUR	19%
UK		TechnipFMC PLC NYSE:FTI	19.6B USD	13%
CN		Yantai Jereh Oilfield Services Group Co Ltd SZSE:002353	75B CNY	19%
FR		Technip Energies NV PAR:TE	5.6B EUR	7%
UK		Subsea 7 SA OSE:SUBC	64.1B NOK	9%
US		Weatherford International PLC NASDAQ:WFRD	6.4B USD	16%
US		Nov Inc NYSE:NOV	6.2B USD	8%

SBM Offshore NV
Glance View

Market Cap

4.6B USD

Industry

N/A

SBM Offshore NV, headquartered in the Netherlands, operates on the global stage as a renowned player in the oil and gas services industry. The company's primary expertise lies in the creation of floating production, storage, and offloading units (FPSOs), which are quintessential infrastructure for extracting and processing hydrocarbons at sea. These floating facilities are critical in assessing, acquiring, and processing oil and gas from offshore reserves, making SBM Offshore an indispensable cog in the energy sector's machinery. Through a blend of engineering prowess and innovative design, SBM Offshore crafts tailor-made solutions that ensure the efficient and safe operation of these floating units even in the most challenging marine environments. Their ability to deliver these advanced, technology-driven solutions has cemented SBM Offshore's reputation as a leader in offshore energy infrastructure. The company derives its revenue through a combination of long-term lease agreements and contracts for the turnkey sale of its FPSO units. With long-term lease and operate contracts, SBM Offshore not only maintains ownership of the FPSOs but also provides ongoing operational services, ensuring a recurring and stable income stream. This business model not only safeguards cash flow but also establishes enduring relationships with major oil producers who rely on SBM Offshore's expertise and reliability. Additionally, the company often sells technology licenses and provides after-sales services, further diversifying its revenue streams and fortifying its position in the industry. By strategically leveraging its robust engineering capabilities and service-oriented business model, SBM Offshore secures its role as a pivotal player in the arena of offshore energy solutions.

View SBFFF Analysis

SBFFF 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.

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SBM Offshore NV
OTC:SBFFF