Operating Margin - Kardex Holding AG (SIX:KARN)

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Price: 290 CHF 1.4%

Market Cap: 2.2B CHF

11.8%

Current

12%

Average

6.5%

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

11.8%

Operating Profit

99.1m

Revenue

837.2m

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
CH		Kardex Holding AG SIX:KARN	2.2B CHF	12%
JP	I	Ishii Iron Works Co Ltd TSE:6362	304.2T JPY	13%
US		Parker-Hannifin Corp NYSE:PH	116.1B USD	21%
SE		Atlas Copco AB STO:ATCO A	867.7B SEK	21%
JP		Mitsubishi Heavy Industries Ltd TSE:7011	14.3T JPY	8%
US		Barnes Group Inc NYSE:B	80.7B USD	45%
US		Illinois Tool Works Inc NYSE:ITW	74B USD	26%
SE		Sandvik AB STO:SAND	395.6B SEK	17%
CH		Schindler Holding AG SIX:SCHP	32.9B CHF	12%
JP		Fanuc Corp TSE:6954	6T JPY	21%
FI	K	Kone Oyj OMXH:KNEBV	32.1B EUR	11%

Kardex Holding AG
Glance View

Market Cap

2.2B CHF

Industry

Machinery

In the realm of industrial automation and intralogistics, Kardex Holding AG stands as a critical player, weaving efficiency into the very fabric of supply chain processes worldwide. Founded in the early 20th century with roots stretching back to essential record-keeping solutions, Kardex has transformed into a modern-day titan specializing in automated storage and retrieval systems. The company operates primarily through two divisions: Kardex Remstar and Kardex Mlog. Kardex Remstar is renowned for its dynamic storage solutions, particularly its vertical lift systems and shuttles, which optimize space utilization and streamline warehouse operations. Kardex Mlog, on the other hand, focuses on complex conveyor systems, moving goods with precision and speed across large facilities. Together, these divisions propel Kardex to address the intricate needs of sectors such as healthcare, automotive, electronics, and logistics, ensuring that products are stored and retrieved quickly and accurately. The financial lifeblood of Kardex Holding AG flows from its adeptness at not only selling its advanced hardware solutions but also offering a suite of complementary services that enhance the customer experience. By engaging in long-term service contracts, maintenance, and software solutions tailored to specific client needs, Kardex creates a robust aftermarket stream of revenue. This approach not only secures a consistent cash flow but also deepens client relationships, fostering loyalty and repeat business. Additionally, as industries increasingly value automation to reduce operational costs and mitigate labor challenges, Kardex positions itself at the forefront of innovation, continually refining its offerings to align with emerging technological trends. As such, Kardex maintains a competitive edge while capitalizing on the growing global demand for smart warehousing solutions.

View KARN Analysis

KARN 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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	Johnson & Johnson NYSE:JNJ	204.39 USD -0.66%
	Berkshire Hathaway Inc NYSE:BRK.A	748 060 USD -0.3%
	Bank of America Corp NYSE:BAC	55.85 USD -0.59%
	Mastercard Inc NYSE:MA	575.54 USD -0.78%
	UnitedHealth Group Inc NYSE:UNH	343.98 USD -0.83%
	Exxon Mobil Corp NYSE:XOM	124.61 USD 1.38%

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	Weatherford International PLC NASDAQ:WFRD	89.24 USD 0.03%

	Johnson & Johnson NYSE:JNJ	204.39 USD -0.66%
	Bank of America Corp NYSE:BAC	55.85 USD -0.59%
	Mastercard Inc NYSE:MA	575.54 USD -0.78%
	Salesforce Inc NYSE:CRM	259.94 USD -0.23%
	Abbvie Inc NYSE:ABBV	220.08 USD -1.81%
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Kardex Holding AG
SIX:KARN