Operating Margin - Empresas Copec SA (SGO:COPEC)

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Price: 6 900 CLP -2.54%

Market Cap: 9T CLP

4.8%

Current

Average

10.5%

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

4.8%

Operating Profit

1.3B

Revenue

28.3B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
CL	E	Empresas Copec SA SGO:COPEC	9T CLP	5%
IN		Reliance Industries Ltd NSE:RELIANCE	20.9T INR	12%
US		Marathon Petroleum Corp NYSE:MPC	56.1B USD	5%
US		Phillips 66 NYSE:PSX	55B USD	2%
US		Valero Energy Corp NYSE:VLO	50B USD	3%
PL	O	Orlen SA PSE:PKN	623.7B CZK	10%
PL		Polski Koncern Naftowy Orlen SA WSE:PKN	108B PLN	10%
IN		Indian Oil Corporation Ltd NSE:IOC	2.3T INR	4%
JP		ENEOS Holdings Inc TSE:5020	2.9T JPY	0%
IN		Bharat Petroleum Corporation Ltd NSE:BPCL	1.6T INR	5%
FI		Neste Oyj OMXH:NESTE	14B EUR	1%

Empresas Copec SA
Glance View

Market Cap

9T CLP

Industry

Energy

Empresas Copec SA, a formidable player rooted deeply in the economic fabric of Chile, embodies a vivid illustration of diversification and strategic investment. Originating from its foundational dominance in the energy and forestry sectors, Empresas Copec has carved out a robust presence worldwide, leveraging natural resources to fuel its multifaceted enterprise. At the heart of its operations lies an integrated value chain structured to tap into forestry, energy, fuel distribution, and even the burgeoning renewable energy sector. This strategic spread across various verticals not only amplifies its resilience against market volatility but also positions it as a pivotal force in both domestic and international markets. Picture a conglomerate that not only extracts and refines crude oil to produce fuels and lubricants but also cultivates and processes forests to manufacture a wide array of forest products. This dual-pronged focus allows Empresas Copec to capture value both upstream and downstream, maximizing profitability along the way. The company's financial acumen shines through its intricate supply network and vast distribution capabilities, ensuring a seamless flow from production to the end-user. Copec, the name synonymous with fueling stations across Chile, showcases just a fraction of its immense operational capability. Furthermore, Empresas Copec’s forward-thinking approach is exemplified by its investments in clean energy solutions, recognizing the evolving global emphasis on sustainability. Through subsidiaries like Arauco, the company taps into international markets, exporting pulp, panels, and other forest products, thereby broadening its revenue streams. This dynamic business model, underscored by diversification, operational efficiency, and strategic foresight, enables Empresas Copec to persistently generate substantial revenues, thus reinforcing its status as one of Latin America's industrial giants.

View COPEC Analysis

COPEC 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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Empresas Copec SA
SGO:COPEC