Operating Margin

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Price: 334.4 EUR 1.27% Market Closed

Market Cap: 15.2B EUR

3.8%

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

3.8%

Operating Income

€1.4B

Revenue

€37.8B

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

3.8%

Operating Income

€1.4B

Revenue

€37.8B

Peer Comparison

Country		Company	Market Cap	Operating Margin
DE	H	Hochtief AG XETRA:HOT	27.6B EUR	Loading...
FR		Vinci SA PAR:DG	65.8B EUR	Loading...
US		Quanta Services Inc NYSE:PWR	69.9B USD	Loading...
IN		Larsen & Toubro Ltd NSE:LT	5.2T INR	Loading...
IN		Larsen and Toubro Ltd F:LTO	46.9B EUR	Loading...
NL		Ferrovial SE AEX:FER	41.4B EUR	Loading...
ES		Ferrovial SA MAD:FER	41.3B EUR	Loading...
US		Comfort Systems USA Inc NYSE:FIX	39.9B USD	Loading...
US		EMCOR Group Inc NYSE:EME	31.5B USD	Loading...
CN	C	China State Construction Engineering Corp Ltd SSE:601668	209.5B CNY	Loading...
ES		ACS Actividades de Construccion y Servicios SA MAD:ACS	24.7B EUR	Loading...

Market Distribution

Min	-61 459.6%
30th Percentile	0.7%
Median	4.5%
70th Percentile	9.8%
Max	94 540%

Other Profitability Ratios

Hochtief AG
Glance View

Economic Moat

None

Market Cap

15.2B EUR

Industry

Construction

Hochtief AG, a titan in the realm of construction and engineering, stands as one of Germany’s most storied companies with roots that trace back to 1874. Known for transforming skylines and landscapes across the globe, Hochtief has established its core operations primarily in three geographical regions: the Americas, Asia-Pacific, and Europe. The company's strategy focuses on diverse sectors such as infrastructure, building, and engineering projects, positioning itself as a leader in both public and private sector developments. By leveraging its extensive expertise and innovative methodologies, Hochtief drives complex projects, from the creation of skyscrapers to the development and maintenance of roads, airports, and bridges. Its operational ethos combines a strong emphasis on sustainability, smart technology, and safety, which sets it apart in the competitive construction landscape. Revenue streams for Hochtief are primarily derived from undertaking large-scale, often iconic construction projects and through subsidiary operations, like CIMIC Group in Australia. These projects range from high-profile urban developments to crucial infrastructure works, with the company often engaged from design through to maintenance. Hochtief doesn't just build, but also invests in infrastructure projects, thus possessing stakes over the life of some developments, adding a long-term financial layer to its income. Additionally, through its public-private partnership (PPP) projects, Hochtief is able to generate consistent cash flows, securing a steady roster of contracts that help weather industry cyclicality. Such a diversified model allows Hochtief to not only capture immediate project-based revenues but also ensure long-term profitability through management and concession-based income.

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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.

Hochtief AG
XBER:HOT

Peer Comparison

Market Distribution

Other Profitability Ratios

Hochtief AG
Glance View

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Hochtief AG XBER:HOT