INTL FCStone Inc. operates as a financial services company worldwide. The company's Commercial Hedging segment offers risk management consulting services related to agricultural and energy commodities, and base metal products listed on the London Metals Exchange. Its Global Payments segment provides payment solutions to banks and commercial businesses; and charities and non-governmental organizations, and government organizations. The company's Securities segment offers value-added solutions that facilitate cross-border trading in foreign securities, including unlisted American Depositary Receipts, Global Depository Receipts, and foreign ordinary shares. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies. In addition, it originates, structures, and places debt instruments; trades in various international debt instruments; and offers asset management services. The company's Physical Commodities segment provides a range of trading and hedging services comprising OTC products for selecting producers, consumers, and investors. This segment also offers financing services to commercial commodity-related companies against physical inventories, such as grain, lumber, meat, energy product, and renewable fuel. The company's Clearing and Execution Services segment offers prime brokerage foreign exchange services for the financial institutions and professional traders; provides a range of OTC products, including 24-hour a day execution of spot, forwards, and options, as well as non-deliverable forwards; and operates a proprietary foreign exchange desk that arbitrages the exchange-traded foreign exchange markets with the cash markets. The company was formerly known as International Assets Holding Corporation and changed its name to INTL FCStone Inc. in March 2011. INTL FCStone Inc. was founded in 1924 and is based in New York, New York.
Business Analysis of INTL FCStone
The Financial 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 INTL FCStone 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 INTL FCStone 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 INTL FCStone with an interactive chart.
- Revenue Growth: INTL FCStone reported a revenue growth of -57.5% year-on-year during 2016. Investment Services Industry grew at -6.5% in the same period
- COGS share of Revenues: As a percentage of revenue, INTL FCStone spent 97.0% of its total revenues on COGS. Investment Services industry average (COGS share of revenue) in the same period was 10.0%
- R&D share of Revenues: INTL FCStone 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, INTL FCStone spent 2.1% of its total revenues on Sales, Marketing, and General Administration (SG&A). Investment Services industry average SG&A spending in the same period was 54.3%
- Inventory share of Revenues: As a percentage of revenue, INTL FCStone spent 0.8% of its total revenues on Inventories. Investment Services industry average Inventory spending in the same period was 0.1%
- Accounts Payable share of Revenues: As a percentage of revenue, INTL FCStone invested 22.2% of its total revenues on Accounts Payable (A/P) Investment Services industry average Accounts Payable investment in the same period was 214.5%
- Accounts Receivable share of Revenues: As a percentage of revenue, INTL FCStone invested 13.3% of its total revenues on Accounts Receivable (A/R). Investment Services industry average Accounts Receivable investment in the same period was 79.0%
- PP&E share of Revenues: As a percentage of revenue, INTL FCStone invested 0.2% of its total revenues on Property, Plants, and Equipments (PP&E). Investment Services industry average PPE investment in the same period was 6.6%
- Intangibles share of Revenues: As a percentage of revenue, INTL FCStone invested 0.4% of its total revenues on Intangibles. Investment Services industry average Intangibles investment in the same period was 74.6%
- Net Margins: INTL FCStone Net Margins in the year 2016 were 0.4%. Investment Services industry average Net Margins in the same period were 17.8%
Sector and Industry Association of INTL FCStone
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.
INTL FCStone is associated with Financials Sector Group, Financial Services Sector, and Investment Services Industry.
Financial Services sector is comprised of the following industries: Investment Services; Consumer Finance; Payment and Transaction Processing Services; Financial News, Research and Data. The definitions for each of the industries is as follows:
- Investment Services industry includes investment banking companies, asset management companies, securities brokers and dealers, online brokers, and security/commodity exchanges.
- Consumer Finance industry includes companies providing credit services and mortgage finance services.
- Payment and Transaction Processing Services industry includes companies providing financial news, research, and data services.
- Financial News, Research and Data industry includes companies providing payments and transaction processing services.
Industry Ranking of INTL FCStone
With $14.8 billion revenues, INTL FCStone ranked number 4 of all the companies in the US Investment Services industry. There were a total of 143 public companies in the US Investment Services industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Investment Services industry by revenues during 2016 were:
- Morgan Stanley ($34.6 billion)
- Goldman Sachs ($30.6 billion)
- Bank Of New York Mellon ($15.2 billion)
- INTL FCStone ($14.8 billion)
- Ameriprise Financial ($11.7 billion)
- BlackRock ($11.2 billion)
- State Street ($10.2 billion)
- Charles Schwab ($7.5 billion)
- Franklin Templeton Investments ($6.6 billion)
- Intercontinental Exchange ($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.