HD Supply Holdings, Inc. operates as an industrial distributor in North America. The company's Facilities Maintenance segment offers electrical and lighting items, plumbing, appliances, janitorial supplies, hardware, kitchen and bath cabinets, window coverings, textiles and guest amenities, healthcare maintenance, and water and wastewater treatment products, as well as heating, ventilating, and air conditioning products. Its Waterworks segment provides pipes, fittings, valves, hydrants, and meters for use in the construction, maintenance, and repair of water and waste-water systems, as well as fire-protection systems; and smart meters, fusible piping solutions, and engineered treatment plant products and services. The company's Construction & Industrial segment offers tilt-up brace systems, forming and shoring systems, concrete chemicals, hand and power tools, cutting tools, rebar, ladders, safety and fall arrest equipment, specialty screws and fasteners, sealants and adhesives, drainage pipes, geo-synthetics, erosion and sediment control equipment, and other engineered materials used in non-residential and residential construction. This segment also provides home improvement solutions, such as light remodeling and construction supplies, kitchen and bath cabinets, windows, plumbing materials, electrical equipment, and other products primarily to small remodeling contractors and trade professionals through local retail outlets. In addition, it offers pre-bid assistance, product submittals, engineering, and tool repair services. It serves contractors, maintenance professionals, home builders, industrial businesses, and government entities through a network of branches and professional sales force, as well as through print catalogs and e-commerce. The company was formerly known as HDS Investment Holding, Inc. and changed its name to HD Supply Holdings, Inc. in April 2013. HD Supply Holdings, Inc. is headquartered in Atlanta, Georgia.
Business Analysis of HD Supply Holdings
The Construction and Building Products 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 HD Supply Holdings 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 HD Supply Holdings 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 HD Supply Holdings with an interactive chart.
- Revenue Growth: HD Supply Holdings reported a revenue growth of 6.6% year-on-year during 2016. Building Materials & Fixtures Industry grew at 10.7% in the same period
- COGS share of Revenues: As a percentage of revenue, HD Supply Holdings spent 66.5% of its total revenues on COGS. Building Materials & Fixtures industry average (COGS share of revenue) in the same period was 72.8%
- R&D share of Revenues: HD Supply Holdings 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, HD Supply Holdings spent 21.5% of its total revenues on Sales, Marketing, and General Administration (SG&A). Building Materials & Fixtures industry average SG&A spending in the same period was 16.5%
- Inventory share of Revenues: As a percentage of revenue, HD Supply Holdings spent 10.8% of its total revenues on Inventories. Building Materials & Fixtures industry average Inventory spending in the same period was 11.3%
- Accounts Payable share of Revenues: As a percentage of revenue, HD Supply Holdings invested 6.9% of its total revenues on Accounts Payable (A/P) Building Materials & Fixtures industry average Accounts Payable investment in the same period was 7.6%
- Accounts Receivable share of Revenues: As a percentage of revenue, HD Supply Holdings invested 12.2% of its total revenues on Accounts Receivable (A/R). Building Materials & Fixtures industry average Accounts Receivable investment in the same period was 11.6%
- PP&E share of Revenues: As a percentage of revenue, HD Supply Holdings invested 4.4% of its total revenues on Property, Plants, and Equipments (PP&E). Building Materials & Fixtures industry average PPE investment in the same period was 26.2%
- Intangibles share of Revenues: As a percentage of revenue, HD Supply Holdings invested 42.1% of its total revenues on Intangibles. Building Materials & Fixtures industry average Intangibles investment in the same period was 27.0%
- Net Margins: HD Supply Holdings Net Margins in the year 2016 were 20.7%. Building Materials & Fixtures industry average Net Margins in the same period were 6.8%
Sector and Industry Association of HD Supply Holdings
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. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
HD Supply Holdings is associated with Industrials Sector Group, Construction and Building Products Sector, and Building Materials & Fixtures Industry.
Construction and Building Products sector is comprised of the following industries: Building Materials & Fixtures; Heavy Construction. The definitions for each of the industries is as follows:
- Building Materials & Fixtures industry includes producers of materials used in the construction and refurbishment of buildings and structures, including cement and other aggregates, wooden beams and frames, paint, glass, roofing and flooring materials other than carpets. Building Materials & Fixtures companies also offer bathroom and kitchen fixtures, plumbing supplies and central air-conditioning and heating equipment.
- Heavy Construction industry includes companies engaged in the construction of commercial buildings, infrastructure such as roads and bridges, residential apartment buildings, and providers of services to construction companies, such as architects, masons, plumbers and electrical contractors. Heavy Construction companies also offer construction equipment.
Industry Ranking of HD Supply Holdings
With $7.1 billion revenues, HD Supply Holdings ranked number 2 of all the companies in the US Building Materials & Fixtures industry. There were a total of 60 public companies in the US Building Materials & Fixtures industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Building Materials & Fixtures industry by revenues during 2016 were:
- Masco ($7.4 billion)
- HD Supply Holdings ($7.1 billion)
- Builders FirstSource ($6.4 billion)
- Owens Corning ($5.7 billion)
- Fortune Brands Home & Security ($5 billion)
- Watsco ($4.2 billion)
- Beacon Roofing Supply ($4.1 billion)
- Fastenal ($4 billion)
- Boise Cascade ($3.9 billion)
- Martin Marietta Materials ($3.8 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
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