Operating Margin - TTW PCL (SET:TTW)

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Price: 9.1 THB

Market Cap: 36.3B THB

63.6%

Current

59%

Average

13.9%

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

63.6%

Operating Profit

3.3B

Revenue

5.2B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
TH	T	TTW PCL SET:TTW	36.3B THB	64%
US		American Water Works Company Inc NYSE:AWK	25B USD	37%
BR		Companhia de Saneamento Basico do Estado de Sao Paulo SABESP BOVESPA:SBSP3	89.9B BRL	44%
UK		Severn Trent PLC LSE:SVT	8.6B GBP	29%
UK		United Utilities Group PLC LSE:UU	8.5B GBP	36%
US		Essential Utilities Inc NYSE:WTRG	10.8B USD	39%
BR	B	Basic Sanitation Company of the State of Sao Paulo SABESP SWB:SAJA	6.2B EUR	44%
HK		Guangdong Investment Ltd HKEX:270	45.8B HKD	45%
UK		Pennon Group PLC LSE:PNN	2.6B GBP	19%
CN		Grandblue Environment Co Ltd SSE:600323	22.9B CNY	23%
HK		Beijing Enterprises Water Group Ltd HKEX:371	25.3B HKD	21%

TTW PCL
Glance View

Market Cap

36.3B THB

Industry

Utilities

TTW Public Company Limited, headquartered in Thailand, finds its roots deeply embedded in the intricate network of water supply and sanitation services in the country. Emerging as a pioneer in private sector involvement, TTW PCL primarily focuses on the development and operation of water treatment and distribution systems. Its journey began with strategic partnerships and the development of state-of-the-art facilities, aligning with the increasing demand for reliable, clean water in Thailand. The company operates large-scale water treatment plants such as the Pathum Thani Waterworks and the West Bangkok Waterworks, delivering potable water across several provinces and harnessing advanced technology to ensure quality and efficiency. These facilities underscore TTW's commitment to setting a benchmark in water management, with a sharp focus on sustainability and innovation, offering a lifeline to both urban and rural communities. TTW PCL’s business model thrives on long-term contracts with governmental and industrial clients, ensuring a steady revenue stream while mitigating typical market volatility. The company's revenue primarily comes from selling treated water and providing relevant services, with meticulous operational processes ensuring cost-effectiveness and minimal environmental impact. By maintaining exclusivity in its service areas and enhancing its technological capabilities, TTW PCL positions itself as a crucial player in the nation's infrastructure, contributing substantially to public health and supporting Thailand’s economic development. Investments in infrastructure improvements and efficiency drives, coupled with its operational expertise, have facilitated profit margins that reflect its prominence and reliability in the market. Through its strategic focus on enhancing service quality and expanding its footprint, TTW continues to capitalize on the growing demand for water resources in the region, illustrating a well-crafted narrative of growth, responsibility, and resilience.

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TTW 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.

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TTW PCL
SET:TTW