Operating Margin - Mitsui Chemicals Inc (TSE:4183)

Watchlist Manager

Watchlist

Price: 3 927 JPY -0.38%

Market Cap: 746.8B JPY

2.7%

Current

Average

5.9%

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

2.7%

Operating Profit

46.5B

Revenue

1.7T

Operating Margin Across Competitors

Country	Company	Market Cap	Operating Margin
JP	Mitsui Chemicals Inc TSE:4183	739.3B JPY	3%
SA	Saudi Basic Industries Corporation SJSC SAU:2010	228.3B SAR	2%
ID	Chandra Asri Pacific PT Tbk OTC:PTPIF	45.6B USD	4%
ID	Chandra Asri Petrochemical Tbk PT IDX:TPIA	618.5T IDR	4%
ID	Barito Pacific Tbk PT IDX:BRPT	338.3T IDR	1%
KR	LG Chem Ltd KRX:051910	29T KRW	2%
CN	Hengli Petrochemical Co Ltd SSE:600346	129.2B CNY	6%
US	Dow Inc NYSE:DOW	17B USD	1%
TW	Nan Ya Plastics Corp TWSE:1303	484.6B TWD	1%
UK	LyondellBasell Industries NV NYSE:LYB	14.3B USD	4%
CN	Zhejiang Juhua Co Ltd SSE:600160	97.6B CNY	19%

Mitsui Chemicals Inc
Glance View

Market Cap

739.3B JPY

Industry

Chemicals

Mitsui Chemicals Inc. stands as a testament to the transformative power of chemistry, deeply rooted in ingenuity and strategic ventures. Emerging from its storied legacy as part of the Mitsui Group—one of the largest keiretsu in Japan—this corporation has dynamically evolved, becoming a powerhouse in the global chemical industry. Its business model hinges on a diversified portfolio, with an intricate balance of three main segments: Basic Materials, Performance Materials, and Healthcare. Through the Basic Materials sector, Mitsui Chemicals channels its established supply chain and technological prowess to produce fundamental chemicals that serve as building blocks for myriad industries, including automotive, construction, and electronics. By leveraging economies of scale and cutting-edge technology, the company ensures cost-effective production, fostering steady revenue streams. Simultaneously, Mitsui Chemicals capitalizes on burgeoning markets by advancing its more specialized Performance Materials and Healthcare segments. Here, innovation is the linchpin, with the company developing high-performance products such as specialty resins, films, and elastomers—which find applications in everyday consumer goods, medical devices, and renewable energy solutions. The Healthcare division, in particular, demonstrates the firm’s commitment to advancing human wellness and addressing pressing health issues, offering everything from dental materials to diagnostic and therapeutic products. By adeptly combining its innovative capabilities with strong market insights, Mitsui Chemicals not only fuels growth but also secures a resilient foothold in the competitive landscape, translating complex chemical processes into tangible, everyday benefits that drive its financial success.

View Mitsui Chemicals Inc Analysis

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.

US	Johnson & Johnson NYSE:JNJ	Pharmaceuticals
US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
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
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
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	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%

	Monolithic Power Systems Inc NASDAQ:MPWR	946.51 USD -3.56%
	Applovin Corp NASDAQ:APP	670.67 USD -6.46%
	NVIDIA Corp NASDAQ:NVDA	175.02 USD -3.27%
	Cal-Maine Foods Inc NASDAQ:CALM	86.89 USD -0.79%
	Pro Medicus Ltd ASX:PME	233.94 AUD 1.36%
	Lundin Gold Inc TSX:LUG	111.41 CAD -0.21%

Mitsui Chemicals Inc
TSE:4183