Icahn Enterprises L.P., through its subsidiaries, operates in investment, automotive, energy, metals, railcar, gaming, metals, mining, food packaging, real estate, and home fashion businesses in the United States, Germany, and Internationally. Its Investment segment operates various private investment funds. The company's Automotive segment supplies a range of components, accessories, and systems to the automotive, small engine, heavy-duty, marine, railroad, agricultural, off-road, aerospace and energy, industrial, and transport markets; and distributes automotive parts, as well as operates automotive retail, and service and tire centers. Its Energy segment refines and markets transportation fuels; and manufactures nitrogen fertilizers. The company's Metals segment collects, processes, and sells ferrous and non-ferrous metals, as well as processes and distributes steel pipe and plate products. Its Railcar segment manufactures and sells railcars; and provides railcar repair services, as well as leases railcars. The company's Gaming segment owns and operates casino gaming properties, including 8 casino facilities with 7,900 slot machines, 300 table games, and 5,500 hotel rooms. Its Mining segment produces and sells iron ore products to the steel industry. The company's Food Packaging segment produces and sells cellulosic, fibrous, and plastic casings for the processed meat and poultry industry. Its Real Estate segment is involved in the rental of commercial real estate properties; construction and sale of single-family and multi-family homes, lots in subdivisions and planned communities, and raw land for residential development; and operation of golf and club. The company's Home Fashion segment manufactures and distributes home fashion consumer products, such as bed, bath, basic bedding, and other textile products. Icahn Enterprises L.P. was founded in 1987 and is headquartered in New York, New York.
Business Analysis of Icahn Enterprises
The Industrial Goods & Services 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 Icahn Enterprises 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 Icahn Enterprises 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 Icahn Enterprises with an interactive chart.
- Revenue Growth: Icahn Enterprises reported a revenue growth of 7.0% year-on-year during 2016. Industrial Conglomerates Industry grew at 3.8% in the same period
- COGS share of Revenues: As a percentage of revenue, Icahn Enterprises spent 82.0% of its total revenues on COGS. Industrial Conglomerates industry average (COGS share of revenue) in the same period was 67.0%
- R&D share of Revenues: Icahn Enterprises 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, Icahn Enterprises spent 14.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Industrial Conglomerates industry average SG&A spending in the same period was 16.9%
- Inventory share of Revenues: As a percentage of revenue, Icahn Enterprises spent 18.2% of its total revenues on Inventories. Industrial Conglomerates industry average Inventory spending in the same period was 14.7%
- Accounts Payable share of Revenues: As a percentage of revenue, Icahn Enterprises invested 33.6% of its total revenues on Accounts Payable (A/P) Industrial Conglomerates industry average Accounts Payable investment in the same period was 12.8%
- Accounts Receivable share of Revenues: As a percentage of revenue, Icahn Enterprises invested 9.8% of its total revenues on Accounts Receivable (A/R). Industrial Conglomerates industry average Accounts Receivable investment in the same period was 25.5%
- PP&E share of Revenues: As a percentage of revenue, Icahn Enterprises invested 61.9% of its total revenues on Property, Plants, and Equipments (PP&E). Industrial Conglomerates industry average PPE investment in the same period was 34.0%
- Intangibles share of Revenues: As a percentage of revenue, Icahn Enterprises invested 13.6% of its total revenues on Intangibles. Industrial Conglomerates industry average Intangibles investment in the same period was 71.2%
- Net Margins: Icahn Enterprises Net Margins in the year 2016 were -6.9%. Industrial Conglomerates industry average Net Margins in the same period were 9.3%
Sector and Industry Association of Icahn Enterprises
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.
Icahn Enterprises is associated with Industrials Sector Group, Industrial Goods & Services Sector, and Industrial Conglomerates Industry.
Industrial Goods & Services sector is comprised of the following industries: Industrial Conglomerates; Industrial Machinery; Electrical Components & Equipment; Electronic Equipment & Parts; Containers & Packaging. The definitions for each of the industries is as follows:
- Industrial Conglomerates industry includes Industrial companies engaged in three or more classes of business within the Industrial industry that differ substantially from each other.
- Industrial Machinery industry includes designers, manufacturers, distributors and installers of industrial machinery and factory equipment, such as machine tools, lathes, presses and assembly line equipment. It also includes makers of pollution control equipment, castings, pressings, welded shapes, structural steelwork, compressors, pumps, bearings, elevators and escalators.
- Electrical Components & Equipment industry consists of manufacturers and distributors of electrical parts for finished products, such as printed circuit boards for radios, televisions and other consumer electronics. It also includes makers of cables, wires, ceramics, transistors, electric adapters, fuel cells and security cameras. Manufacturers of Electric motors and generators and mechanical motion control products are also part of this industry.
- Electronic Equipment & Parts industry includes companies offering Manufacturing and Design services for Engineered Components and Products used in different industries. Companies providing Laser-based manufacturing products are part of this industry.
- Containers & Packaging industry includes producers and distributors of cardboard, bags, boxes, cans, drums, bottles, jars and glass used for packaging. Specialty Packaging Products and Pressure-Sensitive Materials producers are also part of this industry.
Industry Ranking of Icahn Enterprises
With $16.3 billion revenues, Icahn Enterprises ranked number 5 of all the companies in the US Industrial Conglomerates industry. There were a total of 10 public companies in the US Industrial Conglomerates industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Industrial Conglomerates industry by revenues during 2016 were:
- General Electric ($123.7 billion)
- Honeywell International ($39.3 billion)
- 3M ($30.1 billion)
- Danaher ($16.9 billion)
- Icahn Enterprises ($16.3 billion)
- Illinois Tool Works ($13.6 billion)
- Trinity Industries ($4.6 billion)
- Roper Technologies ($3.8 billion)
- Carlisle Companies ($3.7 billion)
- CSW Industrials ($319.8 million)
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 Icahn Enterprisesand its peers on select key performance indicators by clicking the reports provided below