Business Analysis of Core-Mark

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Core-Mark

CORE-MARK

Business Overview

Core-Mark Holding Company, Inc. markets fresh and broad-line supply solutions to the convenience retail industry. The company sells and distributes various food/non-food products, including cigarettes, fast food, candies, snacks, groceries, fresh products, dairy products, breads, beverages, other tobacco products, general merchandise and equipment, and health and beauty care products. Its customers include traditional convenience stores, such as national and super-regional convenience store operators, as well as independently owned convenience stores; and alternative outlets, which include grocery stores, drug stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college and corporate campuses, casinos, hardware stores, airport concessions, and other specialty and small format stores that carry convenience products. The company offers its products to 43,000 customer locations through a network of distribution centers in the United States and Canada. Core-Mark Holding Company, Inc. was founded in 1888 and is headquartered in South San Francisco, California.

Core-Mark

Core-Mark


R&P Rank: 194
Sector: Consumer Goods
Industry:Food Distribution
H.Q Location:California
Website: www.core-mark.com
Company Address:
395 OYSTER POINT BLVD., #415, SOUTH SAN FRANCISCO CA 94080
Ph:650-589-9445

Business Analysis of Core-Mark

The Consumer Goods 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 Core-Mark 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 Core-Mark 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 Core-Mark with an interactive chart.

  1. Revenue Growth: Core-Mark reported a revenue growth of 31.3% year-on-year during 2016. Food Distribution Industry grew at 4.9% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Core-Mark spent 94.9% of its total revenues on COGS. Food Distribution industry average (COGS share of revenue) in the same period was 85.3%
  3. R&D share of Revenues: Core-Mark 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, Core-Mark spent 4.4% of its total revenues on Sales, Marketing, and General Administration (SG&A). Food Distribution industry average SG&A spending in the same period was 11.6%
  5. Inventory share of Revenues: As a percentage of revenue, Core-Mark spent 4.1% of its total revenues on Inventories. Food Distribution industry average Inventory spending in the same period was 5.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Core-Mark invested 0.8% of its total revenues on Accounts Payable (A/P) Food Distribution industry average Accounts Payable investment in the same period was 5.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Core-Mark invested 3.3% of its total revenues on Accounts Receivable (A/R). Food Distribution industry average Accounts Receivable investment in the same period was 6.3%
  8. PP&E share of Revenues: As a percentage of revenue, Core-Mark invested 1.3% of its total revenues on Property, Plants, and Equipments (PP&E). Food Distribution industry average PPE investment in the same period was 6.4%
  9. Intangibles share of Revenues: As a percentage of revenue, Core-Mark invested 0.5% of its total revenues on Intangibles. Food Distribution industry average Intangibles investment in the same period was 10.6%
  10. Net Margins: Core-Mark Net Margins in the year 2016 were 0.4%. Food Distribution industry average Net Margins in the same period were 1.3%

Sector and Industry Association of Core-Mark

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.

Core-Mark is associated with Consumer Goods Sector and Food Distribution Industry.

Consumer Goods sector is comprised of the following industries: Beverages; Personal Goods; Food Products; Diversified Food; Household Goods & Home Construction; Food Distribution; Tobacco; Toys and Games. The definitions for each of the industries is as follows:

  • Beverages industry consists of: Brewing Companies - manufacturers of cider or malt products such as beer, ale and stout; Distillers and Vintners Companies - blenders and shippers of wine and spirits such as whisky, brandy, rum, gin or liqueurs; and Soft Drinks Companies - manufacturers, bottlers and distributors of nonalcoholic beverages, such as soda, fruit juices, tea, coffee and bottled water.
  • Personal Goods industry includes: Clothing & Accessories Companies - manufacturers and distributors of all types of clothing, jewellery, watches or textiles, sportswear, sunglasses, eyeglass frames, leather clothing and goods, and processors of hides and skins; Footwear Companies - manufacturers and distributors of shoes, boots, sandals, sneakers and other types of footwear; and Consumer Packaged Goods Companies - makers and distributors of cosmetics, toiletries and personal-care and hygiene products, including deodorants, soaps, toothpaste, perfumes, diapers, shampoos, razors and feminine hygiene products.
  • Food Products industry includes: Farming & Fishing companies - companies that grow crops or raise livestock, operate sherries or own non-tobacco plantation; Food Products Companies - food producers, including meatpacking, snacks, fruits, vegetables, dairy products and frozen seafood. It also includes producers of pet food and manufacturers of dietary supplements, vitamins and related items.
  • Diversified Food industry includes companies that offer a diverse portfolio of food products across agricultural, animal and dairy product categories.
  • Household Goods & Home Construction industry includes companies that offer: Durable Household Products - Manufacturers and distributors of domestic appliances, lighting, hand tools and power tools, hardware, cutlery, tableware, garden equipment, luggage, towels and linens; Nondurable Household Products - Producers and distributors of pens, paper goods, batteries, light bulbs, tissues, toilet paper and cleaning products such as soaps and polishes; Furnishings - Manufacturers and distributors of furniture, including chairs, tables, desks, carpeting, wallpaper and office furniture; Home Construction - constructors of residential homes, including manufacturers of mobile and prefabricated homes intended for use in one place.
  • Food Distribution industry includes companies that distribute food, beverage and consumer goods to restaurants, healthcare, educational facilities, lodging establishments; equipment and supplies for the foodservice and hospitality industries.
  • Tobacco industry includes Manufacturers and distributors of cigarettes, cigars and other tobacco products. It also includes tobacco plantations.
  • Toys and Games industry consists of manufacturers and distributors of toys and video/computer games, including such toys and games as playing cards, board games, stuffed animals and dolls.

Industry Ranking of Core-Mark

With $14.5 billion revenues, Core-Mark ranked number 4 of all the companies in the US Food Distribution industry. There were a total of 9 public companies in the US Food Distribution industry that had revenues greater than $50 million during 2016.

The top companies in the US Food Distribution industry by revenues during 2016 were:

  1. Sysco ($50.4 billion)
  2. US Foods ($22.9 billion)
  3. Performance Food Group ($16.1 billion)
  4. Core-Mark ($14.5 billion)
  5. Aramark ($14.4 billion)
  6. United Natural Foods ($8.5 billion)
  7. SpartanNash ($7.7 billion)
  8. Amcon Distributing ($1.3 billion)
  9. Chefs' Warehouse ($1.2 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 Core-Markand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of core-mark

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

Sysco Corp with $50 billion revenues in the year 2016 was the number 1 Food Distribution company. Read this report to know the top competitors of Sysco and identify growth and cost optimization opportunities of Sysco

US Foods (USFD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

US Foods Holding Corp. with $23 billion revenues in the year 2016 was the number 2 Food Distribution company. Read this report to know the top competitors of US Foods and identify growth and cost optimization opportunities of US Foods

Performance Food Group (PFGC) Business Analysis – Analyze Historical Performance, Strategic...

Performance Food Group Co with $16 billion revenues in the year 2016 was the number 3 Food Distribution company. Read this report to know the top competitors of Performance Food Group and identify growth and cost optimization opportunities of Performance Food Group

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

Aramark with $14 billion revenues in the year 2016 was the number 5 Food Distribution company. Read this report to know the top competitors of Aramark and identify growth and cost optimization opportunities of Aramark

United Natural Foods (UNFI) Business Analysis – Analyze Historical Performance, Strategic...

United Natural Foods Inc with $8 billion revenues in the year 2016 was the number 6 Food Distribution company. Read this report to know the top competitors of United Natural Foods and identify growth and cost optimization opportunities of United Natural Foods

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

SpartanNash Co with $8 billion revenues in the year 2016 was the number 7 Food Distribution company. Read this report to know the top competitors of SpartanNash and identify growth and cost optimization opportunities of SpartanNash

Revenues Analysis

Core-Mark (CORE) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Core-Mark Holding Company, Inc. (CORE) from 2012 to 2016. Core-Mark generated a total of $14.5 billion revenues during 2016. Core-Mark reported a revenue growth of 31.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Core-Mark (CORE) Revenues And Revenue Growth From 2005 To 2016

This report provides the last twelve years revenues and revenue growth of Core-Mark Holding Company, Inc. (CORE) from 2005 to 2016. Core-Mark generated a total of $14.5 billion revenues during 2016. Core-Mark reported a revenue growth of 31.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Core-Mark (CORE) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Core-Mark Holding Company, Inc. (CORE) revenue growth with Food Distribution industry growth during the last five years from 2012 to 2016. Core-Mark reported a revenue growth of 31.3% year-over-year during 2016. The Food Distribution industry growth was 4.9% year-over-year during 2016. Core-Mark growth was faster than the industry during 2016.

Profit Analysis