Business Analysis of A-Mark Precious Metals

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of A-Mark Precious Metals

A-MARK PRECIOUS METALS

Business Overview

A-Mark Precious Metals, Inc. operates as a precious metals trading company worldwide. The company offers gold, silver, platinum, and palladium in the form of bars, plates, powder, wafers, grains, ingots, and coins, as well as distributes gold and silver coins and bars from sovereign and private mints. It also provides loans on precious metals, and rare coins and other collectibles collateral to coin dealers, collectors, and investors; storage solutions for precious metals and numismatic coins for financial institutions, dealers, investors, and collectors; and a range of logistics services, including storage, shipping, handling, receiving, processing, and inventorying of precious metals and custom coins. In addition, the company offers various services comprising consignment and hedging, as well as customized finance and various liquidity programs, such as repurchase accounts and trade quotes in a range of foreign currencies. It serves mints, manufacturers and fabricators, refiners, coin and bullion dealers, e-commerce retailers, banks and other financial institutions, commodity brokerage houses, industrial users of precious metals, investors, and collectors. The company was founded in 1965 and is headquartered in Santa Monica, California.

A-Mark Precious Metals

A-Mark Precious Metals


R&P Rank: 402
Sector: Basic Materials
Industry:Metal Mining
H.Q Location:California
Website: www.amark.com
Company Address:
429 SANTA MONICA BLVD, SUITE 230, SANTA MONICA CA 90401
Ph:310-587-1414

Business Analysis of A-Mark Precious Metals

The Basic Materials Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how A-Mark Precious Metals compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by A-Mark Precious Metals to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of A-Mark Precious Metals with an interactive chart.

  1. Revenue Growth: A-Mark Precious Metals reported a revenue growth of 11.8% year-on-year during 2016. Metal Mining Industry grew at -5.5% in the same period
  2. COGS share of Revenues: As a percentage of revenue, A-Mark Precious Metals spent 99.5% of its total revenues on COGS. Metal Mining industry average (COGS share of revenue) in the same period was 86.3%
  3. R&D share of Revenues: A-Mark Precious Metals R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, A-Mark Precious Metals spent 0.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Metal Mining industry average SG&A spending in the same period was 6.3%
  5. Inventory share of Revenues: As a percentage of revenue, A-Mark Precious Metals spent 3.6% of its total revenues on Inventories. Metal Mining industry average Inventory spending in the same period was 20.9%
  6. Accounts Payable share of Revenues: As a percentage of revenue, A-Mark Precious Metals invested 0.7% of its total revenues on Accounts Payable (A/P) Metal Mining industry average Accounts Payable investment in the same period was 9.8%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, A-Mark Precious Metals invested 0.6% of its total revenues on Accounts Receivable (A/R). Metal Mining industry average Accounts Receivable investment in the same period was 10.1%
  8. PP&E share of Revenues: As a percentage of revenue, A-Mark Precious Metals invested 0.1% of its total revenues on Property, Plants, and Equipments (PP&E). Metal Mining industry average PPE investment in the same period was 67.7%
  9. Intangibles share of Revenues: As a percentage of revenue, A-Mark Precious Metals invested 0.1% of its total revenues on Intangibles. Metal Mining industry average Intangibles investment in the same period was 10.6%
  10. Net Margins: A-Mark Precious Metals Net Margins in the year 2016 were 0.1%. Metal Mining industry average Net Margins in the same period were -3.7%

Sector and Industry Association of A-Mark Precious Metals

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

A-Mark Precious Metals is associated with Basic Materials Sector and Metal Mining Industry.

Basic Materials sector is comprised of the following industries: Metal Mining; Coal Mining; Chemicals. The definitions for each of the industries is as follows:

  • Metal Mining industry includes companies primarily engaged in mining, developing mines, or exploring for precious metals such as Gold, Silver, Platinum and base metals such as Iron, Copper, Aluminum, Lead, and Zinc. It also includes companies that manufacture alloys such as steel.
  • Coal Mining industry includes companies engaged in the exploration for and/or mining of coal.
  • Chemicals industry includes companies that produce and/or distribute commodity and specialty chemicals. The companies manufacture three general classes of products: (1) basic chemicals, such as acids, alkalies, salts, and organic chemicals; (2) chemical products to be used in further manufacture, such as synthetic fibers, plastics materials, dry colors, and pigments; and (3) finished chemical products to be used as materials or supplies in other industries, such as paints, fertilizers, and explosives.

Industry Ranking of A-Mark Precious Metals

With $6.8 billion revenues, A-Mark Precious Metals ranked number 8 of all the companies in the US Metal Mining industry. There were a total of 34 public companies in the US Metal Mining industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Metal Mining industry by revenues during 2016 were:

  1. Nucor ($16.2 billion)
  2. Freeport-McMoRan ($14.8 billion)
  3. Arconic ($12.4 billion)
  4. United States Steel ($10.3 billion)
  5. Alcoa ($9.3 billion)
  6. Reliance Steel & Aluminum ($8.6 billion)
  7. Steel Dynamics ($7.8 billion)
  8. A-Mark Precious Metals ($6.8 billion)
  9. Newmont Mining ($6.7 billion)
  10. AK Steel Holding ($5.9 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of A-Mark Precious Metalsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of a-mark-precious-metals

Alcoa (AA) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Alcoa Corp with $9 billion revenues in the year 2016 was the number 5 Metal Mining company. Read this report to know the top competitors of Alcoa and identify growth and cost optimization opportunities of Alcoa

Reliance Steel & Aluminum (RS) Business Analysis – Analyze Historical Performance,...

Reliance Steel & Aluminum Co with $9 billion revenues in the year 2016 was the number 6 Metal Mining company. Read this report to know the top competitors of Reliance Steel & Aluminum and identify growth and cost optimization opportunities of Reliance Steel & Aluminum

Steel Dynamics (STLD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Steel Dynamics Inc with $8 billion revenues in the year 2016 was the number 7 Metal Mining company. Read this report to know the top competitors of Steel Dynamics and identify growth and cost optimization opportunities of Steel Dynamics

Newmont Mining (NEM) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Newmont Mining Corp with $7 billion revenues in the year 2016 was the number 9 Metal Mining company. Read this report to know the top competitors of Newmont Mining and identify growth and cost optimization opportunities of Newmont Mining

AK Steel Holding (AKS) Business Analysis – Analyze Historical Performance, Strategic...

AK Steel Holding Corp with $6 billion revenues in the year 2016 was the number 10 Metal Mining company. Read this report to know the top competitors of AK Steel Holding and identify growth and cost optimization opportunities of AK Steel Holding

Southern Copper (SCCO) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Southern Copper Corp with $5 billion revenues in the year 2016 was the number 11 Metal Mining company. Read this report to know the top competitors of Southern Copper and identify growth and cost optimization opportunities of Southern Copper

Revenues Analysis

A-Mark Precious Metals (AMRK) Revenues And Revenue Growth From 2012 To...

This report provides the last five years revenues and revenue growth of A-Mark Precious Metals, Inc. (AMRK) from 2012 to 2016. A-Mark Precious Metals generated a total of $6.8 billion revenues during 2016. A-Mark Precious Metals reported a revenue growth of 11.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in June.

A-Mark Precious Metals (AMRK) Revenues And Revenue Growth From 2012 To...

This report provides the last five years revenues and revenue growth of A-Mark Precious Metals, Inc. (AMRK) from 2012 to 2016. A-Mark Precious Metals generated a total of $6.8 billion revenues during 2016. A-Mark Precious Metals reported a revenue growth of 11.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in June.

A-Mark Precious Metals (AMRK) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of A-Mark Precious Metals, Inc. (AMRK) revenue growth with Metal Mining industry growth during the last four years from 2013 to 2016. A-Mark Precious Metals reported a revenue growth of 11.8% year-over-year during 2016. The Metal Mining industry growth was -5.5% year-over-year during 2016. A-Mark Precious Metals growth was faster than the industry during 2016.

Profit Analysis