Operating Margin

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Price: 5.84 EUR Market Closed

Market Cap: €9.1B

10.3%

Declining

by 0.1%

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

10.3%

Operating Income

AU$2.5B

Revenue

AU$23.8B

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

10.3%

Operating Income

€2.5B

Revenue

AU$23.8B

Peer Comparison

Country		Company	Market Cap	Operating Margin
AU		Qantas Airways Ltd ASX:QAN	15.2B AUD	Loading...
US		Delta Air Lines Inc NYSE:DAL	42.8B USD	Loading...
US		United Airlines Holdings Inc NASDAQ:UAL	33.3B USD	Loading...
UK		International Consolidated Airlines Group SA LSE:IAG	19.1B GBP	Loading...
CH		Kinarus Therapeutics Holding AG SIX:KNRS	19.5B CHF	Loading...
US		Southwest Airlines Co NYSE:LUV	24.9B USD	Loading...
IE	R	Ryanair Holdings PLC LSE:RYA	15.4B EUR	Loading...
CN		Air China Ltd SSE:601111	146B CNY	Loading...
CL		LATAM Airlines Group SA SGO:LTM	17T CLP	Loading...
IN		Interglobe Aviation Ltd NSE:INDIGO	1.8T INR	Loading...
CN		China Southern Airlines Co Ltd SSE:600029	129.4B CNY	Loading...

Market Distribution

Min	-14 949 200%
30th Percentile	-526.4%
Median	-25.2%
70th Percentile	6.1%
Max	145 596.9%

Other Profitability Ratios

Qantas Airways Ltd
Glance View

Economic Moat

None

Market Cap

9.1B EUR

Industry

Airlines

Qantas Airways Ltd., affectionately known as the "Flying Kangaroo," stands as a titan in the aviation industry with a storied history dating back to 1920. Originating from the expanses of the Queensland outback, Qantas has evolved into Australia’s flagship airline, building a reputation for safety, innovation, and exceptional service. Its comprehensive operations extend far beyond merely ferrying passengers across continents. Qantas operates via two distinct segments: Qantas Domestic and Qantas International, covering a vast network that stretches over more than 85 destinations across 20 countries. This robust network is bolstered by its loyalty program, Qantas Frequent Flyer, which not only enhances customer retention but also contributes significantly to its bottom line through partnerships and financial services. At the core of Qantas's business model is its ability to strategically leverage its brand and operational efficiencies in a highly competitive market. By investing in fleet modernization and technological advancements, the airline enhances fuel efficiency and delivers a premium flying experience. Ancillary services, such as flight upgrades, baggage fees, and in-flight purchases, augment their revenue streams. Moreover, their dedication to sustainability, reflected in initiatives like carbon offset programs, aligns with increasingly eco-conscious consumer preferences, further solidifying customer loyalty. Consequently, despite the challenges synonymous with the aviation industry, including fluctuating fuel prices and economic cycles, Qantas sustains its profitability by maintaining operational excellence and a diversified business approach.

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QAN Intrinsic Value

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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.

Qantas Airways Ltd
XBER:QAN

Peer Comparison

Market Distribution

Other Profitability Ratios

Qantas Airways Ltd
Glance View

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