Operating Margin - PTT PCL (SET:PTT)

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Price: 31.75 THB

Market Cap: 906.9B THB

5.9%

Current

Average

10.4%

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

5.9%

Operating Profit

162.9B

Revenue

2.7T

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
TH		PTT PCL SET:PTT	899.3B THB	6%
SA		Saudi Arabian Oil Co SAU:2222	6.7T SAR	44%
US		Exxon Mobil Corp NYSE:XOM	521B USD	12%
US		Chevron Corp NYSE:CVX	315.2B USD	10%
CN		PetroChina Co Ltd SSE:601857	1.9T CNY	8%
UK		Shell PLC LSE:SHEL	160.7B GBP	11%
NL	R	Royal Dutch Shell PLC OTC:RYDAF	215B USD	11%
FR		TotalEnergies SE PAR:TTE	119.8B EUR	13%
CN		China Petroleum & Chemical Corp SSE:600028	748.9B CNY	2%
UK		BP PLC LSE:BP	68.2B GBP	7%
BR		Petroleo Brasileiro SA Petrobras BOVESPA:PETR4	388.7B BRL	29%

PTT PCL
Glance View

Market Cap

899.3B THB

Industry

Energy

PTT Public Company Limited, known commonly as PTT, stands as Thailand’s energy behemoth, orchestrating the movements of gas and oil across the country. Rooted in the Bangkok headquarters, PTT embarked on its journey in the late 1970s, initially as a state enterprise to ensure Thailand's energy security in the face of global uncertainties. Today, it operates as a formidable player in the global energy scene. The company has expanded its scope, weaving a complex tapestry that now includes exploration and production, refining, marketing and distribution, as well as petrochemical operations. Each cog in PTT’s business model is designed for the vertical integration that allows the company to control energy resources from the wellhead through to the end consumer. This all-encompassing approach not only stabilizes supply chains but also provides a robust revenue stream by capturing value across each stage of the energy cycle. At the heart of PTT's profit engine is its multifaceted portfolio, which diversifies income streams and mitigates risks inherent in the volatile energy markets. The company's upstream operations focus on searching, drilling, and producing crude oil and natural gas, while its midstream segment is anchored by a sophisticated network of pipelines, linking production sites with refining complexes and distribution centers. Downstream, PTT flexes its prowess in refining and marketing, selling refined fuels and petrochemical products to industrial, commercial, and retail markets. Additionally, PTT’s investments in refineries and petrochemical plants offer higher-margin products that feed into various industries, increasing resilience against oil price fluctuations. With its strategic expansions and technological advancements, PTT remains a pillar of Thailand's economic infrastructure, dynamically evolving in response to global energy trends while maintaining a steadfast commitment to sustainable development and corporate social responsibility.

View PTT Analysis

PTT 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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PTT PCL
SET:PTT