audit moat
Competitive moat — does the company have a durable advantage?
When to use
Buffett: "Only invest in companies with durable competitive advantages." Assess whether ROIC consistently exceeds the cost of capital, with stable margins.
Quick Start
# Full moat assessment
audit moat
# Custom discount rate
audit moat --wacc 0.12
# Custom tax rate
audit moat --tax 0.25
# Only last 5 years
audit moat --years 2020-2024
Command
audit moat [--years xxxx-yyyy] [--period q1|h1|9m|annual] [--wacc 0.xx] [--tax 0.xx] [--help]
| Parameter | Description | Default |
|---|---|---|
--years |
Year range | All years |
--period |
Fiscal period | annual |
--wacc |
Discount rate | 0.10 (10%) |
--tax |
Tax rate for NOPAT | 0.21 (21%) |
Core Metrics
| Metric | Formula | Meaning |
|---|---|---|
| ROIC Mean | Average capital return | |
| ROIC Stability | Return consistency (CoV) | |
| Gross Margin CoV | Pricing power stability | |
| Revenue R² | Linear regression |
Growth consistency |
| Economic Moat | Value creation spread |
Where:
, when the sum is non-negative; the raw sum (no tax) when negative. Losses have no tax shield. - Negative NOPAT produces negative ROIC, which participates in the mean.
Key signals:
- ROIC > WACC → has moat
- ROIC < WACC → no moat, destroying value
- ROIC negative → operating loss, no moat
Advisory
ROIC Quality
| Status | Threshold |
|---|---|
[+] |
Median > 15% |
[~] |
Otherwise |
ROIC Stability
| Status | Threshold |
|---|---|
[+] |
CoV < 10% |
[~] |
Otherwise |
Gross Margin Stability
| Status | Threshold | Threshold |
|---|---|---|
[+] |
CoV < 10% | CoV < 10% |
[~] |
Otherwise | Otherwise |
Economic Moat
| Status | Metric | Threshold |
|---|---|---|
[+] |
> 5% | > 5% |
[~] |
Otherwise | Otherwise |
Field IDs
Industrial
| Name | Industrial |
|---|---|
| Total Revenue | income:1101 |
| Gross Profit | income:1104 |
| Operating Profit | income:1116 |
| Asset Impairment Loss | income:1113 |
| Stockholders' Equity | balance_sheet:1371 |
| Short Term Debt | balance_sheet:1349 |
| Long Term Debt | balance_sheet:1358 |
| Cash and Cash Equivalents | balance_sheet:1304 |
| Short Term Investments | balance_sheet:1305 |
| Long Term Investments | balance_sheet:1324 |
| Financial Assets | balance_sheet:1329 |
Banking
| Name | Banking |
|---|---|
| Total Revenue | income:2101 |
Insurance
| Name | Insurance |
|---|---|
| Total Revenue | income:3101 |
Industry Routing
| Metric | Industrial | Banking | Insurance |
|---|---|---|---|
| ROIC Mean | Computed | - |
- |
| ROIC Stability | Computed | - |
- |
| Gross Margin CoV | Computed | - |
- |
| Revenue R² | Computed | Computed | Computed |
| Economic Moat | Computed | - |
- |
Banking/Insurance: only Revenue R² is available.
Output Example
MOAT ASSESSMENT
TICKER: [US.AAPL - Apple Inc.]
PERIOD: [2020-ANNUAL ~ 2024-ANNUAL]
Parameter Value
------------------
WACC 10%
[+] ROIC Quality: Median 27.1% (Median > 15% = high returns)
↳ Median > 15% = high returns
[+] ROIC Stability: CoV 8.5% (CoV < 10% = highly stable)
↳ CoV < 10% = highly stable
[+] Gross Margin Stability: 2.1% (CoV < 10% = stable pricing power)
↳ CoV < 10% = stable pricing power
[+] Economic Moat (ROIC-WACC): 17.1% (> 5% = creating economic value)
↳ > 5% = creating economic value
[ANALYSIS]
Metric Gross Margin ROIC
---------------------------------
Mean 42.1% 28.4%
Median 41.5% 27.1%
Max 45.0% 35.3%
Min 38.0% 22.0%
StdDev 2.8% 5.2%
CoV 6.7% 18.0%
Slope 0.80%/yr 2.30%/yr
R² 72% 85%
[DATA]
Period Revenue Gross Profit GM% ROIC ROIC-WACC
-------------------------------------------------------------
2020 ANNUAL 340.00B 140.00B 41.2% - -
2021 ANNUAL 360.00B 150.00B 41.7% 35.3% 25.3%
...