Operating Margin - Energix Renewable Energies Ltd (TASE:ENRG)

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Price: 1 587 ILS 4.48%

Market Cap: 8.9B ILS

26.7%

Current

46%

Average

13.8%

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

26.7%

Operating Profit

213.3m

Revenue

797.8m

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
IL	E	Energix Renewable Energies Ltd TASE:ENRG	8.9B ILS	27%
CN		China Yangtze Power Co Ltd SSE:600900	686.1B CNY	53%
ID	B	Barito Renewables Energy PT Tbk IDX:BREN	1 281T IDR	72%
CN		Huaneng Lancang River Hydropower Inc SSE:600025	169.6B CNY	50%
CN		China Longyuan Power Group Corp Ltd HKEX:916	149.1B HKD	36%
IN		Adani Green Energy Ltd NSE:ADANIGREEN	1.7T INR	57%
CN		China Three Gorges Renewables Group Co Ltd SSE:600905	118.4B CNY	34%
ES	E	EDP Renovaveis SA ELI:EDPR	12.4B EUR	24%
CN		Sichuan Chuantou Energy Co Ltd SSE:600674	70.4B CNY	31%
IN		NHPC Ltd NSE:NHPC	774.8B INR	40%
IN	N	Ntpc Green Energy Ltd NSE:NTPCGREEN	771.3B INR	51%

Energix Renewable Energies Ltd
Glance View

Market Cap

8.9B ILS

Industry

Utilities

Energix Renewable Energies Ltd. has rapidly emerged as a compelling player in the global push towards sustainable energy solutions. The company, headquartered in Israel, is dedicated to the development, construction, and operation of renewable energy projects, specifically focusing on wind, solar, and energy storage technologies. By strategically selecting locations that offer optimal conditions for renewable energy generation, Energix ensures that its operations are not only environmentally sustainable but also economically viable. The company's project pipeline extends across several territories, including Israel, Eastern Europe, and the United States, providing it with a diversified market presence. This geographical diversity allows Energix to mitigate region-specific risks and captures a broader spectrum of growth opportunities in the burgeoning renewable sector. Energix's financial model is primarily driven by the development and management of renewable energy assets. By investing in the infrastructure required for these projects, Energix capitalizes on long-term power purchase agreements (PPAs) which provide a stable and predictable revenue stream. This model leverages governmental incentives, favorable regulatory frameworks, and technological advancements to secure both immediate returns and future scalability. Moreover, Energix reinvests its earnings to expand its project portfolio, continuously enhancing its capacity to generate clean energy. With global energy demands shifting towards sustainable practices, Energix is well-positioned to grow its market share while contributing to the global transition towards renewable energy. Through a blend of strategic foresight and robust execution, Energix Renewable Energies Ltd. demonstrates a clear commitment to both profit and planet, aligning commercial success with environmental stewardship.

View ENRG Analysis

ENRG 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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M	MMC Sanayi ve Ticari Yatirimlar AS IST:MMCAS.E	138.9 TRY -5.51%
	Ringkjoebing Landbobank A/S CSE:RILBA	1 440 DKK -1.5%
M	Megureit Israel Ltd TASE:MGRT	892.7 ILS 0.42%
G	Gatos Silver Inc TSX:GATO	21.59 CAD 5.73%
T	Thai Optical Group PCL SET:TOG	6.7 THB
	Vulcan Energy Resources Ltd ASX:VUL	3.93 AUD 2.88%

	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%

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	Skyworks Solutions Inc NASDAQ:SWKS	66.97 USD -1.88%
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Energix Renewable Energies Ltd
TASE:ENRG