AK Steel Holding Corporation, through its subsidiary, AK Steel Corporation, produces flat-rolled carbon, stainless, and electrical steels and tubular products in the United States and internationally. It produces flat-rolled carbon steel products, including coated, cold-rolled, and hot-rolled carbon steel products; specialty stainless and electrical steels in sheet and strip forms; and carbon and stainless steel that is finished into welded steel tubing. The company also buys and sells steel and steel products, and other materials; and produces metallurgical coal from reserves in Pennsylvania. It sells its flat-rolled carbon steel products primarily to automotive manufacturers and to customers in the infrastructure and manufacturing markets, including electrical transmission, heating, ventilation and air conditioning equipment, and appliances; and carbon steel products to distributors, service centers, and converters. The company also sells its stainless steel products to manufacturers and their suppliers in the automotive industry; manufacturers of food handling, chemical processing, pollution control, and medical and health equipment; and distributors and service centers, as well electrical steel products to manufacturers of power transmission and distribution transformers, and electrical motors and generators. AK Steel Holding Corporation was founded in 1993 and is headquartered in West Chester, Ohio.
Business Analysis of AK Steel Holding
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 AK Steel Holding 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 AK Steel Holding 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 AK Steel Holding with an interactive chart.
- Revenue Growth: AK Steel Holding reported a revenue growth of -12.1% year-on-year during 2016. Metal Mining Industry grew at -5.5% in the same period
- COGS share of Revenues: As a percentage of revenue, AK Steel Holding spent 86.1% of its total revenues on COGS. Metal Mining industry average (COGS share of revenue) in the same period was 86.3%
- R&D share of Revenues: AK Steel Holding R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, AK Steel Holding spent 4.7% 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%
- Inventory share of Revenues: As a percentage of revenue, AK Steel Holding spent 18.9% of its total revenues on Inventories. Metal Mining industry average Inventory spending in the same period was 20.9%
- Accounts Payable share of Revenues: As a percentage of revenue, AK Steel Holding invested 10.0% of its total revenues on Accounts Payable (A/P) Metal Mining industry average Accounts Payable investment in the same period was 9.8%
- Accounts Receivable share of Revenues: As a percentage of revenue, AK Steel Holding invested 7.5% of its total revenues on Accounts Receivable (A/R). Metal Mining industry average Accounts Receivable investment in the same period was 10.1%
- PP&E share of Revenues: As a percentage of revenue, AK Steel Holding invested 34.2% of its total revenues on Property, Plants, and Equipments (PP&E). Metal Mining industry average PPE investment in the same period was 67.7%
- Intangibles share of Revenues: AK Steel Holding Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
- Net Margins: AK Steel Holding 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 AK Steel Holding
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.
AK Steel Holding 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 AK Steel Holding
With $5.9 billion revenues, AK Steel Holding ranked number 10 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:
- Nucor ($16.2 billion)
- Freeport-McMoRan ($14.8 billion)
- Arconic ($12.4 billion)
- United States Steel ($10.3 billion)
- Alcoa ($9.3 billion)
- Reliance Steel & Aluminum ($8.6 billion)
- Steel Dynamics ($7.8 billion)
- A-Mark Precious Metals ($6.8 billion)
- Newmont Mining ($6.7 billion)
- 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.
- 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 AK Steel Holdingand its peers on select key performance indicators by clicking the reports provided below