Operating Margin - Vinci SA (PAR:DG)

Watchlist Manager

Watchlist

Price: 119.8 EUR -0.37%

Market Cap: 68.7B EUR

12%

Current

11%

Average

5.2%

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

12%

Operating Profit

8.8B

Revenue

73.4B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
FR		Vinci SA PAR:DG	67.1B EUR	12%
JP		Sumitomo Mitsui Construction Co Ltd TSE:1821	156.9T JPY	4%
US		Quanta Services Inc NYSE:PWR	63.6B USD	6%
IN		Larsen and Toubro Ltd F:LTO	52.5B EUR	9%
IN		Larsen & Toubro Ltd NSE:LT	5.6T INR	9%
ES		Ferrovial SA MAD:FER	40.5B EUR	10%
NL		Ferrovial SE AEX:FER	40.6B EUR	10%
US		Comfort Systems USA Inc NYSE:FIX	33.2B USD	13%
CN	C	China State Construction Engineering Corp Ltd SSE:601668	215.3B CNY	4%
DE	H	Hochtief AG XETRA:HOT	25.4B EUR	4%
US		EMCOR Group Inc NYSE:EME	27.4B USD	9%

Vinci SA
Glance View

Economic Moat

None

Market Cap

67.1B EUR

Industry

Construction

Vinci SA, a pivotal player in the global construction and concessions landscape, operates at the intersection of traditional infrastructure and innovative, sustainable development. Born out of a century-old heritage, the company has evolved to become a multi-faceted behemoth. Vinci's operations are broadly categorized into two main segments: contracting and concessions. In its contracting arm, the company showcases its prowess in construction and civil engineering through subsidiaries like Vinci Energies and Eurovia. These entities execute a sprawling range of projects, from designing energy-efficient buildings to expanding urban transport systems. Through its construction expertise, Vinci not only takes on large-scale projects worldwide but also adapts to the increasing demand for sustainable and smart infrastructure, underpinning how cities and industries evolve over time. The concessions segment of Vinci further cements its financial foundation, as the company manages essential public infrastructure assets. With considerable stakes in motorway networks and airports, Vinci Concessions ensures it maintains a steady flow of predictable income. These long-term contracts allow the company to effectively monetize its expertise in operating and expanding transport infrastructures while relying on consistent returns from tolls and fees. The symmetry in Vinci’s business model—balancing immediate project-based revenue through contracting with reliable, long-term earnings from concessions—exemplifies a strategic diversification. This blend not only strengthens its market position but also delivers resilience against economic fluctuations, affirming its stature as a leader in fostering both modern infrastructure and sustainable growth globally.

View DG Analysis

DG 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.

US	Johnson & Johnson NYSE:JNJ	Pharmaceuticals
US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

	Johnson & Johnson NYSE:JNJ	206.37 USD -0.93%
	Berkshire Hathaway Inc NYSE:BRK.A	745 600 USD -1.34%
	Bank of America Corp NYSE:BAC	55.27 USD 1.86%
	Mastercard Inc NYSE:MA	572.23 USD 1.06%
	UnitedHealth Group Inc NYSE:UNH	327.42 USD -0.22%
	Exxon Mobil Corp NYSE:XOM	116.69 USD 0.13%

	Franklin Covey Co NYSE:FC	16.88 USD -0.53%
	Mohawk Industries Inc NYSE:MHK	107.88 USD -1.47%
	Ardmore Shipping Corp NYSE:ASC	10.89 USD 0.37%
	ASGN Inc NYSE:ASGN	48.8 USD -0.51%
	Skyworks Solutions Inc NASDAQ:SWKS	64.68 USD 0.29%
	Weatherford International PLC NASDAQ:WFRD	78.83 USD 2.38%

	Johnson & Johnson NYSE:JNJ	206.37 USD -0.93%
	Bank of America Corp NYSE:BAC	55.27 USD 1.86%
	Mastercard Inc NYSE:MA	572.23 USD 1.06%
	Salesforce Inc NYSE:CRM	259.91 USD 0.8%
	Abbvie Inc NYSE:ABBV	226.82 USD 1.8%
	Home Depot Inc NYSE:HD	345 USD -2.81%

	Monolithic Power Systems Inc NASDAQ:MPWR	937.11 USD 0.82%
	Applovin Corp NASDAQ:APP	721.37 USD 3.89%
	NVIDIA Corp NASDAQ:NVDA	180.99 USD 3.93%
	Cal-Maine Foods Inc NASDAQ:CALM	85.7 USD -0.43%
	Pro Medicus Ltd ASX:PME	217.37 AUD 1.17%
	Lundin Gold Inc TSX:LUG	113.69 CAD -1.01%

Vinci SA
PAR:DG