Operating Margin - Jungheinrich AG (XETRA:JUN3)

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Price: 34.84 EUR -1.36%

Market Cap: 3.6B EUR

7.9%

Current

Average

6.5%

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

7.9%

Operating Profit

430.3m

Revenue

5.4B

Operating Margin Across Competitors

Country	Company	Market Cap	Operating Margin
DE	Jungheinrich AG XETRA:JUN3	3.6B EUR	8%
US	Caterpillar Inc NYSE:CAT	280.1B USD	20%
US	Cummins Inc NYSE:CMI	70.4B USD	12%
SE	Volvo AB STO:VOLV B	602.7B SEK	11%
US	Paccar Inc NASDAQ:PCAR	58.6B USD	14%
US	Westinghouse Air Brake Technologies Corp NYSE:WAB	36.6B USD	17%
CN	China CSSC Holdings Ltd SSE:600150	257.5B CNY	5%
DE	Daimler Truck Holding AG XETRA:DTG	30.4B EUR	6%
KR	Hyundai Heavy Industries Co Ltd KRX:329180	50.9T KRW	11%
JP	Toyota Industries Corp TSE:6201	5.3T JPY	3%
JP	Komatsu Ltd TSE:6301	4.6T JPY	16%

Jungheinrich AG
Glance View

Economic Moat

None

Market Cap

3.6B EUR

Industry

Machinery

Jungheinrich AG, established in 1953, began its journey in the bustling industrial backdrop of Hamburg, Germany, embarking on a mission to revolutionize material handling and intralogistics. The company has since become a pivotal player in the global logistics ecosystem, crafting a narrative that intertwines innovative engineering with almost relentless market expansion. At the core of Jungheinrich's operations is its expertise in the manufacturing of forklifts, warehousing technology, and material flow technology. Leveraging its engineering prowess, the company has designed a diverse range of electric and combustion-powered forklift trucks, automated storage solutions, and state-of-the-art warehousing equipment, aiming to optimize efficiency and productivity for businesses worldwide. These products meet the demands of industries from retail to pharmaceuticals, positioning Jungheinrich as a linchpin in the supply chain management of its varied clientele. Beyond hardware, Jungheinrich extends its value chain by delving into logistics software and digital solutions that enhance the management of supply chains, aligning them more closely with the digital age's demands. Offering services such as fleet management and predictive maintenance, the company ensures clients can minimize downtime and maximize uptime, thus guaranteeing operational continuity. Affording customers the option to rent or lease its machinery also opens new recurrent revenue streams, providing financial flexibility and aligning costs with operational needs. By integrating sustainable practices into its manufacturing processes and products, Jungheinrich not only adheres to the growing demand for environmental responsibility but also positions itself as a forward-thinking leader in its field. This holistic approach to intralogistics—combining machinery, software, and service—reinforces Jungheinrich's role in powering the gears of global commerce.

View JUN3 Analysis

JUN3 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.

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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

S	Studio Dragon Corp KOSDAQ:253450	38 950 KRW -0.13%
F	FBS Global Ltd NASDAQ:FBGL	0.804 USD -6.51%

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	Berkshire Hathaway Inc NYSE:BRK.A	748 886.97 USD 0.85%
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	UnitedHealth Group Inc NYSE:UNH	341.84 USD 1.52%
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	Weatherford International PLC NASDAQ:WFRD	80.34 USD -1.07%

	Johnson & Johnson NYSE:JNJ	211.58 USD 0.75%
	Bank of America Corp NYSE:BAC	55.14 USD 1.06%
	Mastercard Inc NYSE:MA	571.93 USD 1.52%
	Salesforce Inc NYSE:CRM	262.23 USD -0.05%
	Abbvie Inc NYSE:ABBV	223.32 USD -0.29%
	Home Depot Inc NYSE:HD	359.65 USD 0.61%

Jungheinrich AG
XETRA:JUN3