Operating Margin - Rubis SCA (PAR:RUI)

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Price: 31.82 EUR 0.38%

Market Cap: 3.3B EUR

7.6%

Current

Average

13.8%

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

7.6%

Operating Profit

499.6m

Revenue

6.6B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
FR		Rubis SCA PAR:RUI	3.3B EUR	8%
ES		Naturgy Energy Group SA MAD:NTGY	24B EUR	19%
US		Atmos Energy Corp NYSE:ATO	26.9B USD	33%
IT		Snam SpA MIL:SRG	18.9B EUR	48%
HK		Hong Kong and China Gas Co Ltd HKEX:3	132.3B HKD	15%
JP	T	Tokyo Gas Co Ltd TSE:9531	2.2T JPY	7%
JP		Osaka Gas Co Ltd TSE:9532	2.1T JPY	9%
IN		GAIL (India) Ltd NSE:GAIL	1.1T INR	9%
IT		Italgas SpA MIL:IG	9.5B EUR	38%
CN		ENN Energy Holdings Ltd HKEX:2688	77.7B HKD	8%
CN		ENN Natural Gas Co Ltd SSE:600803	68.6B CNY	9%

Rubis SCA
Glance View

Economic Moat

None

Market Cap

3.3B EUR

Industry

Utilities

Rubis SCA, a French company with roots stretching back to the early 1990s, has carved a robust niche for itself in the energy sector. Traditionally, Rubis has operated with a multifaceted approach, balancing the roles of both distribution and terminal operations. The company focuses on the distribution of petroleum products, including LPG (liquefied petroleum gas), fuels, heating oil, and bitumen, across Europe, Africa, and the Caribbean. By having a diversified geographic footprint, Rubis mitigates risks associated with regional market fluctuations, allowing it to maintain its financial stability and secure steady revenue streams. Infrastructure plays a critical role in its strategy, as owning its storage facilities provides flexibility and control over the supply chain, enabling Rubis to optimize logistics and maintain superior service delivery standards. The monetization model of Rubis revolves around leveraging its comprehensive supply network and storage capabilities to ensure an uninterrupted fuel distribution process. By investing in strategically located terminal facilities, the company secures a competitive advantage, reducing costs and enhancing its operational efficiency. Additionally, Rubis engages in the bitumen market, catering to infrastructure needs in different regions, which further bolsters its revenue through both services and direct sales. The company operates in a complex, heavily regulated environment, which it navigates through a nuanced understanding of market dynamics, maintaining a customer-first approach that underpins its service offerings. This strategic multi-pronged approach ensures Rubis remains resilient, adeptly managing external pressures while capitalizing on growth opportunities in the diverse markets it serves.

View RUI Analysis

RUI 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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Rubis SCA
PAR:RUI