Operating Margin - Verbio SE (SWB:VBK)

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Price: 18.06 EUR -3.78%

Market Cap: 4.8B EUR

-7.4%

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

-7.4%

Operating Profit

-122.7m

Revenue

1.7B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
DE	V	Verbio SE SWB:VBK	4.8B EUR	-7%
IN		Reliance Industries Ltd NSE:RELIANCE	21.1T INR	12%
US		Marathon Petroleum Corp NYSE:MPC	57.4B USD	5%
US		Phillips 66 NYSE:PSX	57B USD	2%
US		Valero Energy Corp NYSE:VLO	51.3B USD	3%
PL	O	Orlen SA PSE:PKN	623.3B CZK	10%
PL		Polski Koncern Naftowy Orlen SA WSE:PKN	108.7B PLN	10%
IN		Indian Oil Corporation Ltd NSE:IOC	2.3T INR	4%
JP		ENEOS Holdings Inc TSE:5020	3T JPY	0%
IN		Bharat Petroleum Corporation Ltd NSE:BPCL	1.6T INR	5%
FI		Neste Oyj OMXH:NESTE	14.1B EUR	1%

Verbio SE
Glance View

Economic Moat

None

Market Cap

4.8B EUR

Industry

Energy

Nestled in the heart of Germany, Verbio Vereinigte BioEnergie AG, or simply Verbio SE, stands as a formidable force in the renewable energy landscape. Born from the vision to curb fossil fuel dependency, Verbio embarked on a journey to transform agricultural raw materials into sustainable biofuels. Founded in 2006, the company sought to harness the power of innovation in the production of biodiesel, bioethanol, and biomethane. Its operations are a testament to engineering prowess, featuring a vertically integrated model where they oversee everything from feedstock procurement to conversion and finally, distribution. At its core, Verbio’s business revolves around using leftover materials such as straw and agricultural waste, amplifying its commitment to sustainability and reducing carbon footprints. The ability to turn low-value feedstocks into high-value energy products not only aligns with global sustainability goals but also adds significant economic value. Financially, Verbio’s strategy is hinged on its diversified product portfolio, catering to a broad spectrum of energy needs across Europe and beyond. By positioning itself in the middle of the energy transition, Verbio captures value at various points in the biofuel supply chain. The company benefits from its stronghold in a regulatory environment that incentivizes renewable energy production; government mandates and subsidies often play a pivotal role in subsidizing operations and bolstering margins. Coupled with its efficient conversion processes, Verbio thrives on economies of scale, allowing it to be cost-competitive while maintaining product quality. As the world increasingly shifts towards greener alternatives, Verbio SE continues to refine its processes and expand its reach, laying the groundwork for next-generation biofuels and cementing its footprint as a visionary leader in the energy sector.

View VBK Analysis

VBK 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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US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
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US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

	Johnson & Johnson NYSE:JNJ	US
	Berkshire Hathaway Inc NYSE:BRK.A	US
	Bank of America Corp NYSE:BAC	US
	Mastercard Inc NYSE:MA	US
	UnitedHealth Group Inc NYSE:UNH	US
	Exxon Mobil Corp NYSE:XOM	US
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	Nike Inc NYSE:NKE	US
	Visa Inc NYSE:V	US
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	Coca-Cola Co NYSE:KO	US
	Walmart Inc NYSE:WMT	US
	Verizon Communications Inc NYSE:VZ	US
	Chevron Corp NYSE:CVX	US

	Johnson & Johnson NYSE:JNJ	211.58 USD 0.75%
	Berkshire Hathaway Inc NYSE:BRK.A	748 886.97 USD 0.85%
	Bank of America Corp NYSE:BAC	55.14 USD 1.06%
	Mastercard Inc NYSE:MA	571.93 USD 1.52%
	UnitedHealth Group Inc NYSE:UNH	341.84 USD 1.52%
	Exxon Mobil Corp NYSE:XOM	118.82 USD -0.6%

	Franklin Covey Co NYSE:FC	16.63 USD -0.12%
	Mohawk Industries Inc NYSE:MHK	112.49 USD -0.15%
	Ardmore Shipping Corp NYSE:ASC	11.14 USD -1.68%
	ASGN Inc NYSE:ASGN	48.07 USD 0.94%
	Skyworks Solutions Inc NASDAQ:SWKS	66.97 USD -1.88%
	Weatherford International PLC NASDAQ:WFRD	80.34 USD -1.07%

	Johnson & Johnson NYSE:JNJ	211.58 USD 0.75%
	Bank of America Corp NYSE:BAC	55.14 USD 1.06%
	Mastercard Inc NYSE:MA	571.93 USD 1.52%
	Salesforce Inc NYSE:CRM	262.23 USD -0.05%
	Abbvie Inc NYSE:ABBV	223.32 USD -0.29%
	Home Depot Inc NYSE:HD	359.65 USD 0.61%

Verbio SE
SWB:VBK