Operating Margin - Verizon Communications Inc (XBER:BAC)

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Price: 34.235 EUR -0.41%

Market Cap: 144.1B EUR

23.6%

Current

23%

Average

9.8%

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

23.6%

Operating Profit

32.5B

Revenue

137.5B

Operating Margin Across Competitors

Country	Company	Market Cap	Operating Margin
US	Verizon Communications Inc NYSE:VZ	170.8B USD	24%
US	AT&T Inc NYSE:T	174.6B USD	19%
DE	Deutsche Telekom AG XETRA:DTE	136.3B EUR	23%
JP	Nippon Telegraph and Telephone Corp TSE:9432	13T JPY	13%
CN	China Telecom Corp Ltd SSE:601728	576.5B CNY	7%
SG	Singapore Telecommunications Ltd SGX:Z74	75.6B SGD	10%
SA	Saudi Telecom Company SJSC SAU:7010	189B SAR	18%
FR	Orange SA PAR:ORA	38.1B EUR	11%
CH	Swisscom AG SIX:SCMN	29.8B CHF	12%
AU	Telstra Corporation Ltd ASX:TLS	55.4B AUD	17%
TW	Chunghwa Telecom Co Ltd TWSE:2412	1T TWD	21%

Verizon Communications Inc
Glance View

Economic Moat

Narrow

Market Cap

144.3B EUR

Industry

Telecommunication

Verizon Communications Inc. stands as a cornerstone in the telecommunications industry, a company that, since its inception in 2000, has become synonymous with innovation and reliability. Born from the merger of Bell Atlantic and GTE, Verizon has woven itself deeply into the fabric of American connectivity. The company's DNA is steeped in the rich history of the Baby Bells, and its operational scope spans across wireless communications, broadband, and fiber services. Verizon's robust network, widely recognized as one of the most reliable in the nation, serves as the backbone for modern communication —a necessity in today's digital age where connectivity is pivotal. Its operations are divided into major segments: Verizon Consumer Group, which caters to the individual consumer with wireless, residential, and small business segments, and Verizon Business Group, focusing on enterprise solutions that include strategic services and Internet of Things (IoT) applications. Verizon’s revenue model is a mosaic of subscription-based income and service fees, a strategy that allows for steady cash flow even in shifting economic landscapes. Key to its profitability is the extensive infrastructure that supports its wireless network, driving customer loyalty through service quality and coverage. The company has invested heavily in 5G technology, aiming to capture the accelerating demand for faster, more reliable digital experiences. Verizon leverages its core competencies to partner with tech giants, fostering an ecosystem that promises growth in areas like cloud computing, media delivery, and beyond. With its strong brand value and strategic focus on next-generation networks, Verizon aligns its goals with the increasing pace of technological adoption, laying a foundation for sustainable growth while navigating the complex telecommunication terrain.

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BAC 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

R	Reviv3 Procare Co AMEX:AXIL	6.65 USD -4.04%
	Shenzhen JPT Opto-Electronics Co Ltd SSE:688025	141.57 CNY -1.3%
S	SMC Electric Ltd HKEX:2381	0.171 HKD 5.56%

	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%

	Johnson & Johnson NYSE:JNJ	207.35 USD 0.19%
	Bank of America Corp NYSE:BAC	55.95 USD 1.73%
	Mastercard Inc NYSE:MA	563.13 USD -1.36%
	Salesforce Inc NYSE:CRM	253.62 USD -4.26%
	Abbvie Inc NYSE:ABBV	229.31 USD 0.36%
	Home Depot Inc NYSE:HD	345.82 USD 0.5%

Verizon Communications Inc
XBER:BAC