Operating Margin

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Price: 6 893 JPY -1.5% Market Closed

Market Cap: ¥683.1B

3.2%

Improving

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

3.2%

Operating Income

¥45.3B

Revenue

¥1.4T

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

3.2%

Operating Income

¥45.3B

Revenue

¥1.4T

Peer Comparison

Country		Company	Market Cap	Operating Margin
JP		NH Foods Ltd TSE:2282	670.8B JPY	Loading...
JP	G	Goyo Foods Industry Co Ltd TSE:2230	53.2T JPY	Loading...
CH		Nestle SA SIX:NESN	183.5B CHF	Loading...
US		Mondelez International Inc NASDAQ:MDLZ	75.1B USD	Loading...
FR		Danone SA PAR:BN	42.8B EUR	Loading...
US		Hershey Co NYSE:HSY	38.9B USD	Loading...
CN		Muyuan Foods Co Ltd SZSE:002714	246.6B CNY	Loading...
CH		Chocoladefabriken Lindt & Spruengli AG SIX:LISN	25.7B CHF	Loading...
US	K	Kellanova XMUN:KEL	24.7B EUR	Loading...
CN		Foshan Haitian Flavouring and Food Co Ltd SSE:603288	205.3B CNY	Loading...
US		Kellogg Co NYSE:K	29B USD	Loading...

Market Distribution

Min	-125 500%
30th Percentile	4.2%
Median	7%
70th Percentile	10.6%
Max	9 743.7%

Other Profitability Ratios

NH Foods Ltd
Glance View

Market Cap

683.1B JPY

Industry

Food Products

NH Foods Ltd., originally known as Nippon Meat Packers, is a testament to Japan's post-war economic renaissance and stands as a beacon in the global meat processing industry. Established in 1942 in Osaka, the company navigated through the murky waters of World War II and subsequent scarcity to emerge as a key player in Japan's burgeoning economy by the latter half of the 20th century. Gradually broadening its horizons beyond domestic confines, NH Foods leveraged Japan's robust infrastructure and logistics to efficiently manage a vast network that oversees production, processing, and distribution. This vertical integration ensures quality control at every stage, allowing it to offer a diverse range of products, from fresh meats to processed foods, serving both household and industrial clients. The financial machinery fueling its success pivots on a symbiotic blend of traditional practices and innovative forays into international markets. While safeguarding its reputation with high quality meat, NH Foods embraces modern efficiencies such as automation in processing and strategic acquisitions that expand its global footprint. Diversifying its portfolio to include seafood, dairy, and other proteins catalyzed revenue streams and fortified its market resilience. Meanwhile, an increasing focus on sustainability and health-conscious products aligns with shifting consumer preferences, ensuring that NH Foods remains not only profitable but also relevant in an ever-evolving industry landscape. The company's focus on global expansion while maintaining its core values showcases a meticulous balancing act, driving its sustained growth and robustness.

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NH Foods Ltd 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.

NH Foods Ltd
TSE:2282

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Market Distribution

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NH Foods Ltd
Glance View

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NH Foods Ltd TSE:2282