Operating Margin

Watchlist Manager

Watchlist

Price: 13.87 EUR -2.32% Market Closed

Market Cap: €2.5B

1.7%

Declining

by 9.2%

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

1.7%

Operating Income

€60.7m

Revenue

€3.6B

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

1.7%

Operating Income

€60.7m

Revenue

€3.6B

Peer Comparison

Country	Company	Market Cap	Operating Margin
DE	K&S AG XETRA:SDF	2.5B EUR	Loading...
US	Corteva Inc NYSE:CTVA	49.5B USD	Loading...
CA	Nutrien Ltd TSX:NTR	46.5B CAD	Loading...
CN	Qinghai Salt Lake Industry Co Ltd SZSE:000792	186.1B CNY	Loading...
CL	Sociedad Quimica y Minera de Chile SA NYSE:SQM	24.2B USD	Loading...
CN	Zangge Mining Co Ltd SZSE:000408	141.3B CNY	Loading...
US	CF Industries Holdings Inc NYSE:CF	14.4B USD	Loading...
SA	SABIC Agri-Nutrients Company SJSC SAU:2020	53.8B SAR	Loading...
CN	Shandong Hualu-Hengsheng Chemical Co Ltd SSE:600426	77.9B CNY	Loading...
NO	Yara International ASA OSE:YAR	111.4B NOK	Loading...
RU	PhosAgro PAO MOEX:PHOR	831.9B RUB	Loading...

Market Distribution

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

Other Profitability Ratios

K&S AG
Glance View

Market Cap

2.5B EUR

Industry

Chemicals

Rooted deep in the rich soils of Germany, K+S AG has emerged as a formidable player in the world of potash and salt production. Born from the consolidation of several smaller companies over a century ago, it now stands as one of the world's leading suppliers of fertilizers and salt products. The company's operations are centered around two primary divisions: potash and magnesium products, and salt. Potash, a potassium-rich mineral, is at the heart of global agriculture, providing essential nutrients to crops and enhancing yields. K+S AG mines this vital element from extensive deposits, a process that begins with the extraction of raw materials from deep underground, which are then refined and sold as fertilizers. This endeavor not only supports the agricultural sector but also feeds into broader industrial uses, including the manufacturing of glass and detergents. On another note, K+S AG's prowess in salt production spans continents. Whether it's de-icing roads in North America or seasoning food in Europe, K+S AG produces a staggering range of salt products to meet diverse needs. Through its subsidiary Morton Salt in the U.S., the company has cemented its name in households and industries alike. By leveraging large-scale mining operations and a well-distributed supply network, K+S AG effectively captures value in each stage of its supply chain. This dual focus strategy – potash for agriculture and other industrial uses, and salt for daily consumption and safety – drives the company’s revenue engine, enabling it to maintain a robust market position amidst global challenges. While the company remains geographically significant in Europe, its strategic focus on sustainable practices and global expansion underpins its ongoing story of growth and adaptation in an ever-evolving marketplace.

View SDF Analysis

SDF Intrinsic Value

Overvaluation 3%

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.

K&S AG
XETRA:SDF

Peer Comparison

Market Distribution

Other Profitability Ratios

K&S AG
Glance View

See Also

Company

Help

Tools

Stocks

52 Week Range	10.79 16.85
Price Target

K&S AG XETRA:SDF