Operating Margin - Mitsubishi Shokuhin Co Ltd (TSE:7451)

Watchlist Manager

Watchlist

Price: 999 999.9999 JPY

Market Cap: 274.7B JPY

1.5%

Current

Average

3.1%

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

1.5%

Operating Profit

32.2B

Revenue

2.1T

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
JP	M	Mitsubishi Shokuhin Co Ltd TSE:7451	274.7B JPY	2%
ZA	B	Bid Corporation Ltd JSE:BID	140.5B Zac	5%
US		Sysco Corp NYSE:SYY	34.8B USD	4%
ZA	S	SPAR Group Ltd JSE:SPP	18.3B Zac	2%
US		US Foods Holding Corp NYSE:USFD	16.8B USD	3%
US		Performance Food Group Co NYSE:PFGC	13.7B USD	1%
TH		CP Axtra PCL SET:CPAXT	166.1B THB	3%
SG	O	Olam International Ltd F:O5I	4.3B EUR	3%
SG		Olam Group Ltd SGX:VC2	3.6B SGD	3%
US		Chefs' Warehouse Inc NASDAQ:CHEF	2.5B USD	4%
AU		Metcash Ltd ASX:MTS	3.6B AUD	3%

Mitsubishi Shokuhin Co Ltd
Glance View

Market Cap

274.7B JPY

Industry

Retail

Mitsubishi Shokuhin Co Ltd., a key player nestled within the intricate ecosystem of Japan's food distribution industry, operates with the precision and reliability reminiscent of its larger Mitsubishi conglomerate heritage. Established with a vision to streamline the flow of food products across the nation, the company has crafted a robust network connecting producers, retailers, and consumers. At the heart of its operations lies a seamless integration of logistics and distribution, underpinned by advanced technology and a deep understanding of market trends. With a strategic approach to inventory management, it mitigates the complexities associated with perishable goods, ensuring that high-quality products are delivered efficiently across vast distances. This orchestration of logistics prowess enables Mitsubishi Shokuhin to push beyond mere distribution, forging partnerships that enhance its reputation as a linchpin in the supply chain of food retail. Earning its revenue through the careful balance of volume-driven distribution and value-added services, Mitsubishi Shokuhin navigates a competitive landscape by emphasizing its comprehensive service offerings. Its portfolio spans various segments, including the distribution of frozen, chilled, and ambient foods, as well as alcoholic and non-alcoholic beverages. The company differentiates itself by not just moving products from point A to B, but by tailoring its services to meet the nuanced needs of its clients, from grocery stores and restaurants to healthcare facilities. By leveraging joint ventures and collaborations, it enhances its capability to provide comprehensive distribution solutions, thus ensuring sustained financial stability and growth. This focus on building symbiotic relationships along the supply chain gives Mitsubishi Shokuhin a distinctive edge, securing its place as an indispensable partner within the intricate tapestry of Japan’s culinary market.

View Mitsubishi Shokuhin Co Ltd Analysis

Mitsubishi Shokuhin Co Ltd Intrinsic Value

Show

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	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
	Pfizer Inc NYSE:PFE	US
	Palantir Technologies Inc NYSE:PLTR	US
	Nike Inc NYSE:NKE	US
	Visa Inc NYSE:V	US
	Alibaba Group Holding Ltd NYSE:BABA	CN
	JPMorgan Chase & Co NYSE:JPM	US
	Coca-Cola Co NYSE:KO	US
	Walmart Inc NYSE:WMT	US
	Verizon Communications Inc NYSE:VZ	US
	Chevron Corp NYSE:CVX	US

	C&C Group PLC LSE:CCR	133.6 GBX -1.04%
	Mortgage Advice Bureau (Holdings) PLC LSE:MAB1	676 GBX -1.74%
A	Allied Copper Corp XTSX:CPR	0.405 CAD
C	Carbonxt Group Ltd ASX:CG1	0.1 AUD -9.09%
	Tree Holdings Ltd HKEX:8395	0.212 HKD
	Mcphy Energy SA PAR:MCPHY	2.32 EUR 0.22%

	Johnson & Johnson NYSE:JNJ	207.35 USD 0.19%
	Berkshire Hathaway Inc NYSE:BRK.A	744 120 USD -1.41%
	Bank of America Corp NYSE:BAC	55.95 USD 1.73%
	Mastercard Inc NYSE:MA	563.13 USD -1.36%
	UnitedHealth Group Inc NYSE:UNH	336.4 USD 1.91%
	Exxon Mobil Corp NYSE:XOM	122.65 USD 1.92%

	Franklin Covey Co NYSE:FC	16.64 USD -0.83%
	Mohawk Industries Inc NYSE:MHK	109.51 USD 0.19%
	Ardmore Shipping Corp NYSE:ASC	10.45 USD -1.32%
	ASGN Inc NYSE:ASGN	46.66 USD -3.13%
	Skyworks Solutions Inc NASDAQ:SWKS	64.395 USD 1.55%
	Weatherford International PLC NASDAQ:WFRD	80.89 USD 3.36%

Mitsubishi Shokuhin Co Ltd
TSE:7451