Operating Margin

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Price: 506.6 CHF -0.98%

Market Cap: 15.2B CHF

26.5%

Declining

by 1%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

26.5%

Operating Income

CHf278.4m

Revenue

CHf1.1B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

26.5%

Operating Income

CHf278.4m

Revenue

CHf1.1B

Peer Comparison

Country		Company	Market Cap	Operating Margin
CH		VAT Group AG SIX:VACN	15.5B CHF	Loading...
JP	I	Ishii Iron Works Co Ltd TSE:6362	304.2T JPY	Loading...
US		Parker-Hannifin Corp NYSE:PH	119.2B USD	Loading...
SE		Atlas Copco AB STO:ATCO A	937.8B SEK	Loading...
JP		Mitsubishi Heavy Industries Ltd TSE:7011	15.8T JPY	Loading...
US		Barnes Group Inc NYSE:B	82.8B USD	Loading...
US		Illinois Tool Works Inc NYSE:ITW	75.4B USD	Loading...
SE		Sandvik AB STO:SAND	414.6B SEK	Loading...
CH		Schindler Holding AG SIX:SCHP	32.5B CHF	Loading...
JP		Fanuc Corp TSE:6954	6.1T JPY	Loading...
FI	K	Kone Oyj OMXH:KNEBV	32.3B EUR	Loading...

Market Distribution

Min	-62 472.2%
30th Percentile	3.5%
Median	10.3%
70th Percentile	16.5%
Max	91.2%

Other Profitability Ratios

VAT Group AG
Glance View

Economic Moat

Narrow

Market Cap

15.2B CHF

Industry

Machinery

VAT Group AG, based in Switzerland, is a testament to the power of niche expertise in the global industrial landscape. Specializing in the production of vacuum valves and related equipment, VAT Group stands at the confluence of cutting-edge technology and industrial necessity. These vacuum components are essential in the manufacture of semiconductors, displays, and solar panels, as well as in numerous other industries that require precise control of contaminants. The company has carved out a significant market position by focusing exclusively on this specialized area, capitalizing on its technological prowess and commitment to quality. This singular focus on vacuum technology enables VAT to command a dominant market share and establish deep-rooted relationships with major industrial clients across the globe. The revenue engine of VAT Group is driven by its ability to deliver custom-engineered solutions that meet the stringent requirements of its clients in high-tech industries. Operating in a space where precision and reliability are paramount, VAT’s value proposition lies in its innovation pipeline, sustained by significant investment in research and development. This not only enhances the performance and lifespan of their products but also ensures compliance with evolving technological and environmental standards. Strategic global operations, coupled with a service model that supports clients with enriching after-sales support, allow VAT Group AG to maintain a robust revenue stream, ensuring a steady flow of business from initial equipment sales to continuous servicing contracts. By marrying technical excellence with business acuity, VAT Group boosts its financial performance while reinforcing its reputation as a leader in the vacuum technology domain.

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VACN 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.

VAT Group AG
SIX:VACN

Peer Comparison

Market Distribution

Other Profitability Ratios

VAT Group AG
Glance View

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VAT Group AG SIX:VACN