FNV - High-Margin Players - I'm Buying Royalties!
2024-05-31 08:00:00 ET
Summary
- S&P 500 profit margins are at the highest level in 16 years.
- Yet, there is a massive difference across sectors when it comes to profitability.
- Texas Pacific Land, Viper Energy, and Franco-Nevada are highlighted as companies with above-average margins and superior business models.
This article was coproduced with Leo Nelissen.
It’s time to celebrate!
The S&P 500’s (SP500) profit margins are at the highest level in 16 years!
As reported by Bloomberg , S&P 500 companies are on track to be more profitable than at any point in more than a decade.
This surge is boosted by layoffs, lower commodity prices (thanks to oil and gas!), and continued pricing power in an environment of sticky inflation.
In other words, many companies have not passed on the savings from falling commodity costs while lowering their workforce levels, according to the article....
High-Margin Players - I'm Buying Royalties!