Operating Margin

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Price: 308.5 USD 4.52% Market Closed

Market Cap: $63.4B

9.2%

Improving

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

9.2%

Operating Income

€2B

Revenue

€21.3B

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

9.2%

Operating Income

$2B

Revenue

€21.3B

Peer Comparison

Country	Company	Market Cap	Operating Margin
FR	Thales SA PAR:HO	53.1B EUR	Loading...
US	Raytheon Technologies Corp NYSE:RTX	262.7B USD	Loading...
NL	Airbus SE PAR:AIR	163.2B EUR	Loading...
US	Lockheed Martin Corp NYSE:LMT	135.9B USD	Loading...
US	General Dynamics Corp NYSE:GD	98.1B USD	Loading...
US	L3harris Technologies Inc NYSE:LHX	66.4B USD	Loading...
US	RTX Corp LSE:0R2N	264.5B USD	Loading...
US	Boeing Co NYSE:BA	191.6B USD	Loading...
FR	Safran SA PAR:SAF	130.8B EUR	Loading...
UK	Rolls-Royce Holdings PLC LSE:RR	106B GBP	Loading...
DE	Rheinmetall AG XETRA:RHM	84B EUR	Loading...

Market Distribution

Min	-17 526.7%
30th Percentile	1.3%
Median	6.1%
70th Percentile	11.5%
Max	89 700%

Other Profitability Ratios

Thales SA
Glance View

Economic Moat

None

Market Cap

63.4B USD

Industry

Aerospace & Defense

Thales SA has long stood as a beacon of innovation and reliability in the world of aerospace, defense, and security. Originating from France, this multinational corporation has intricately woven a vast network of technological prowess, primarily driven by its deep-rooted expertise in advancing communication systems, defense electronics, and cybersecurity solutions. Its operations span across over 68 countries, employing a workforce skilled in blending traditional craftsmanship with modern technological advancements. The company’s strength lies in its ability to secure lucrative contracts from governments and large-scale enterprises, which rely on Thales' sophisticated systems for everything from air traffic management to satellite technology. By consistently pushing the boundaries of innovation, Thales positions itself not merely as a service provider but as a strategic partner dedicated to enhancing global security and safety. Revenue streams for Thales emerge from a diverse yet interconnected array of sectors. The defense segment serves as a cornerstone, generating significant income through comprehensive offerings that include cutting-edge radar systems, avionics, and military communication tools. In the civil market, Thales shines by supplying avionics and in-flight entertainment solutions to major airlines and aerospace manufacturers. Another vital pillar is the digital security segment, where Thales capitalizes on the growing need for cybersecurity and secure transactions, offering solutions that protect data and secure electronic transactions worldwide. Through mergers, acquisitions, and continuous R&D investments, Thales has fortified its position in these markets, ensuring resilient growth by adeptly navigating the intricate landscapes of technology and geopolitical demands.

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THLEF 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.

Thales SA
OTC:THLEF

Peer Comparison

Market Distribution

Other Profitability Ratios

Thales SA
Glance View

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Thales SA OTC:THLEF