Operating Margin

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Price: 351.1 PLN 5.75% Market Closed

Market Cap: zł70.2B

11.8%

Improving

by 6.1%

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

11.8%

Operating Income

zł4.1B

Revenue

zł35.1B

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

11.8%

Operating Income

zł4.1B

Revenue

zł35.1B

Peer Comparison

Country		Company	Market Cap	Operating Margin
PL		KGHM Polska Miedz SA WSE:KGH	70.3B PLN	Loading...
US		Southern Copper Corp NYSE:SCCO	159.2B USD	Loading...
US		Freeport-McMoRan Inc NYSE:FCX	90.3B USD	Loading...
UK		Antofagasta PLC LSE:ANTO	36.9B GBP	Loading...
CN		Jiangxi Copper Co Ltd SSE:600362	210.5B CNY	Loading...
CA		First Quantum Minerals Ltd TSX:FM	34.6B CAD	Loading...
CA		Lundin Mining Corp TSX:LUN	30.6B CAD	Loading...
CN		Tongling Nonferrous Metals Group Co Ltd SZSE:000630	101.8B CNY	Loading...
DE	A	Aurubis AG XETRA:NDA	7B EUR	Loading...
CN	Y	Yunnan Copper Co Ltd SZSE:000878	48.8B CNY	Loading...
IN		Hindustan Copper Ltd NSE:HINDCOPPER	615B INR	Loading...

Market Distribution

Min	-10 083 900%
30th Percentile	-1.5%
Median	5.4%
70th Percentile	11.7%
Max	195 905.3%

Other Profitability Ratios

KGHM Polska Miedz SA
Glance View

Economic Moat

None

Market Cap

70.2B PLN

Industry

Metals & Mining

In the icy heartland of Poland, amid the industrial landscapes of Lower Silesia, thrives KGHM Polska Miedź SA, a copper giant with footprints that extend to foreign soils. The company roots itself deep within the earth, not unlike its mining operations, where it extracts copper, silver, and other valuable metals from its plentiful reserves. Established in 1961, KGHM's journey from a national concern to a formidable global player is a testament to strategic acumen and unyielding determination. A highlight of KGHM's operations is the deeply integrated process, which begins with mining and ends with refined metal production. This end-to-end involvement not only confers significant control over quality and production costs but also bolsters its competitive advantage in the volatile metals market. The revenues of KGHM are largely mined from robust operations organized into three key segments: Mining and Milling, Metallurgical Processing, and Sales. Within the bowels of the earth, the company taps into rich copper ore and associated metals, while the metallurgical operations transform these raw materials into high-quality commodities. These refined products then make their way into industries worldwide, from electronics to construction, making KGHM's offerings indispensable in an increasingly metal-dependent world. Additionally, their strategic international ventures in nations like Canada and Chile have not only diversified their asset base but also buffered the company against domestic economic headwinds. This global expansion, coupled with innovation in sustainable practices, portray KGHM as a steward of industry, committed to delivering value beyond the confines of metal markets.

View KGH Analysis

KGH Intrinsic Value

Overvaluation 35%

Intrinsic Value

Price

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.

KGHM Polska Miedz SA
WSE:KGH

Peer Comparison

Market Distribution

Other Profitability Ratios

KGHM Polska Miedz SA
Glance View

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KGHM Polska Miedz SA WSE:KGH