馃寙 PUBLIC ADMINISTRATION: SUPPLY CHAIN 馃寙
In times of crisis and inflation, the function and management of cities is always a National Security requirement. There are services that must always be managed, by public or private companies, which are essential. Indeed, if any other country wanted to harm civilians, it would have to destroy the supply chain of food and public services.
Excluding food, an example of supply chain of servicies is in the chart. It was selected 25 of the mains ones and inspired in the US market. This are:
- Independent Power Producers: NRG Energy and Vistra Corp
- Regulated Electric: NextEra Energy, The Southern Company, Duke Energy, PG&E Us and Dominion Energy
- Regulated Gas: Atmos Energy, NiSource, New Fortress, UGI and Southwest Holdings
-Regulated Water: American Water Works, Essential Utilities, American States Company, California Water Service and SJW Group
- Renewable Energy: Constellation Energy, Brookfield Ren, Fluence Energy, NextEra E Partners and Ormat Tech
- Waste Management: Waste Management, Republic Services and Clean Harbors
Based on the revaluation probabilities of the S&P500 [https://www.linkedin.com/posts/joelpadilla_joelpadilla-finance-economy-activity-7103570995784863744-eRlH?utm_source=share&utm_medium=member_desktop], some of these companies could benefit. The most important is to appreciate the relation between the operating vs profit margin. It is ≈ 85.7% correlated, and is the Operating explains in ≈ 73.5% the Profit Margin. This means that each 1% of change in Operating Margin, has an impact of ± 0.54% on the Profit Margin, with an estimation error of ≈ 5.3% in general terms.
The best analysis is yours!
J. Joel Padilla
Copyright: Joel Padilla 2023
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