Business Analysis of Calpine

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Calpine

Business Overview

Calpine Corporation, a wholesale power generation company, owns and operates natural gas-fired and geothermal power plants in North America. It operates natural gas-fired combustion turbines and renewable geothermal conventional steam turbines. The company sells power, steam, capacity, renewable energy credits, and ancillary services to utilities, independent electric system operators, industrial and agricultural companies, retail power providers, municipalities and other governmental entities, and power marketers, as well as retail commercial, industrial, and residential customers. As of February 1, 2017, it owned and operated 80 power plants, including 1 under construction with an aggregate generation capacity of 25,908 megawatts and 828 megawatts under construction. The company was founded in 1984 and is based in Houston, Texas.

Calpine

Calpine


R&P Rank: 406
Sector: Utilities
Industry:Electric Utilities
H.Q Location:Texas
Website: www.calpine.com
Company Address:
717 TEXAS AVENUE, SUITE 1000, HOUSTON TX 77002
Ph:713-830-2000

Business Analysis of Calpine

The Utilities 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 Calpine 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 Calpine 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 Calpine with an interactive chart.

  1. Revenue Growth: Calpine reported a revenue growth of 3.8% year-on-year during 2016. Electric Utilities Industry grew at 0.2% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Calpine spent 86.8% of its total revenues on COGS. Electric Utilities industry average (COGS share of revenue) in the same period was 64.7%
  3. R&D share of Revenues: Calpine 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, Calpine spent 2.1% of its total revenues on Sales, Marketing, and General Administration (SG&A). Electric Utilities industry average SG&A spending in the same period was 1.2%
  5. Inventory share of Revenues: As a percentage of revenue, Calpine spent 8.7% of its total revenues on Inventories. Electric Utilities industry average Inventory spending in the same period was 7.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Calpine invested 11.9% of its total revenues on Accounts Payable (A/P) Electric Utilities industry average Accounts Payable investment in the same period was 11.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Calpine invested 12.5% of its total revenues on Accounts Receivable (A/R). Electric Utilities industry average Accounts Receivable investment in the same period was 14.5%
  8. PP&E share of Revenues: As a percentage of revenue, Calpine invested 193.8% of its total revenues on Property, Plants, and Equipments (PP&E). Electric Utilities industry average PPE investment in the same period was 286.7%
  9. Intangibles share of Revenues: Calpine Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
  10. Net Margins: Calpine Net Margins in the year 2016 were 1.4%. Electric Utilities industry average Net Margins in the same period were 3.3%

Sector and Industry Association of Calpine

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.

Calpine is associated with Utilities Sector and Electric Utilities Industry.

Utilities sector is comprised of the following industries: Electric Utilities; Gas, Water, & Multiutlities. The definitions for each of the industries is as follows:

  • Electric Utilities industry includes companies engaged in generation, transmission, and/or distribution of electric energy for sale.
  • Gas, Water, & Multiutlities industry includes companies engaged in transmission and/or storage of natural gas for sale and those engaged in distributing water for sale for domestic, commercial, and industrial use. It also includes companies with significant presence in more than one utility.

Industry Ranking of Calpine

With $6.7 billion revenues, Calpine ranked number 14 of all the companies in the US Electric Utilities industry. There were a total of 33 public companies in the US Electric Utilities industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Electric Utilities industry by revenues during 2016 were:

  1. Southern ($19.9 billion)
  2. American Electric Power ($16.4 billion)
  3. NextEra Energy ($16.2 billion)
  4. FirstEnergy ($14.6 billion)
  5. AES ($13.6 billion)
  6. NRG Energy ($12.4 billion)
  7. Edison International ($11.9 billion)
  8. Dominion Resources ($11.7 billion)
  9. Entergy ($10.8 billion)
  10. DTE Energy ($10.6 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 Calpineand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of calpine

Eversource Energy (ES) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Eversource Energy with $8 billion revenues in the year 2016 was the number 11 Electric Utilities company. Read this report to know the top competitors of Eversource Energy and identify growth and cost optimization opportunities of Eversource Energy

CenterPoint Energy (CNP) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

CenterPoint Energy Inc with $8 billion revenues in the year 2016 was the number 12 Electric Utilities company. Read this report to know the top competitors of CenterPoint Energy and identify growth and cost optimization opportunities of CenterPoint Energy

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

PPL Corp with $8 billion revenues in the year 2016 was the number 13 Electric Utilities company. Read this report to know the top competitors of PPL and identify growth and cost optimization opportunities of PPL

AVANGRID (AGR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

AVANGRID, Inc. with $6 billion revenues in the year 2016 was the number 15 Electric Utilities company. Read this report to know the top competitors of AVANGRID and identify growth and cost optimization opportunities of AVANGRID

Dynegy (DYN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Dynegy Inc. with $4 billion revenues in the year 2016 was the number 16 Electric Utilities company. Read this report to know the top competitors of Dynegy and identify growth and cost optimization opportunities of Dynegy

Pinnacle West Capital (PNW) Business Analysis – Analyze Historical Performance, Strategic...

Pinnacle West Capital Corp with $3 billion revenues in the year 2016 was the number 17 Electric Utilities company. Read this report to know the top competitors of Pinnacle West Capital and identify growth and cost optimization opportunities of Pinnacle West Capital

Revenues Analysis

Calpine (CPN) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Calpine Corp (CPN) from 2012 to 2016. Calpine generated a total of $6.7 billion revenues during 2016. Calpine reported a revenue growth of 3.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Calpine (CPN) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Calpine Corp (CPN) from 2002 to 2016. Calpine generated a total of $6.7 billion revenues during 2016. Calpine reported a revenue growth of 3.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Calpine (CPN) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Calpine Corp (CPN) revenue growth with Electric Utilities industry growth during the last five years from 2012 to 2016. Calpine reported a revenue growth of 3.8% year-over-year during 2016. The Electric Utilities industry growth was 0.2% year-over-year during 2016. Calpine growth was faster than the industry during 2016.

Profit Analysis

Calpine (CPN) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Calpine Corp (CPN) from 2012 to 2016. Calpine reported a total net income of $92 million during 2016. Calpine generated a total of $6.7 billion revenues during 2016. Calpine net profit margin was 1.4% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.