Business Analysis of Monsanto

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

MONSANTO

Business Overview

Monsanto Company, together with its subsidiaries, provides agricultural products for farmers worldwide. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. The Seeds and Genomics segment produces row crop seeds, including corn, soybean, cotton, and canola seeds under the DEKALB, Channel, Asgrow, and Deltapine brands; and vegetable seeds, such as tomato, pepper, melon, cucumber, squash, beans, broccoli, onions, lettuce, and others under the Seminis and De Ruiter brands. It also develops biotechnology traits that assist farmers in controlling insects and weeds in corn, soybean, cotton, and canola crops under the SmartStax, YieldGard, YieldGard VT Triple, VT Triple PRO, and VT Double PRO brands; Intacta RR2 PRO brand; Bollgard and Bollgard II brands; Roundup Ready, Roundup Ready 2 Yield, and Genuity brands; and Roundup Ready 2 Xtend and Bollgard II XtendFlex brands. This segment also licenses a range of germplasm and trait technologies to large and small seed companies. The Agricultural Productivity segment manufactures and sells herbicides for agricultural, industrial, ornamental, turf, and residential lawn and garden applications for weed control, as well as for control of preemergent annual grass and small seeded broadleaf weeds in corn and other crops under the Roundup and Harness brands. The company markets its products through distributors, independent retailers and dealers, agricultural cooperatives, plant raisers, and agents, as well as directly to farmers. Monsanto Company has a collaborative agreement with Novozymes to discover, develop, and produce microbial solutions. The company was formerly known as Monsanto Ag Company and changed its name to Monsanto Company in March 2000. Monsanto Company was founded in 2000 and is headquartered in St. Louis, Missouri.

Monsanto

Monsanto


R&P Rank: 207
Sector: Basic Materials
Industry:Chemicals
H.Q Location:Missouri
Website: www.monsanto.com
Company Address:
800 N LINDBERGH BLVD, ST LOUIS MO 63167
Ph:314-694-1000

Business Analysis of Monsanto

The Basic Materials 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 Monsanto 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 Monsanto 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 Monsanto with an interactive chart.

  1. Revenue Growth: Monsanto reported a revenue growth of -10.0% year-on-year during 2016. Chemicals Industry grew at -4.1% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Monsanto spent 48.0% of its total revenues on COGS. Chemicals industry average (COGS share of revenue) in the same period was 70.2%
  3. R&D share of Revenues: As a percentage of revenue, Monsanto spent 11.2% of its total revenues on R&D. Chemicals industry average R&D spending in the same period was 2.5%
  4. SG&A share of Revenues: As a percentage of revenue, Monsanto spent 21.0% of its total revenues on Sales, Marketing, and General Administration (SG&A). Chemicals industry average SG&A spending in the same period was 13.0%
  5. Inventory share of Revenues: As a percentage of revenue, Monsanto spent 24.0% of its total revenues on Inventories. Chemicals industry average Inventory spending in the same period was 14.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Monsanto invested 10.1% of its total revenues on Accounts Payable (A/P) Chemicals industry average Accounts Payable investment in the same period was 12.6%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Monsanto invested 20.6% of its total revenues on Accounts Receivable (A/R). Chemicals industry average Accounts Receivable investment in the same period was 16.8%
  8. PP&E share of Revenues: As a percentage of revenue, Monsanto invested 38.7% of its total revenues on Property, Plants, and Equipments (PP&E). Chemicals industry average PPE investment in the same period was 52.9%
  9. Intangibles share of Revenues: As a percentage of revenue, Monsanto invested 38.1% of its total revenues on Intangibles. Chemicals industry average Intangibles investment in the same period was 31.4%
  10. Net Margins: Monsanto Net Margins in the year 2016 were 9.9%. Chemicals industry average Net Margins in the same period were 8.1%

Sector and Industry Association of Monsanto

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.

Monsanto is associated with Basic Materials Sector and Chemicals Industry.

Basic Materials sector is comprised of the following industries: Metal Mining; Coal Mining; Chemicals. The definitions for each of the industries is as follows:

  • Metal Mining industry includes companies primarily engaged in mining, developing mines, or exploring for precious metals such as Gold, Silver, Platinum and base metals such as Iron, Copper, Aluminum, Lead, and Zinc. It also includes companies that manufacture alloys such as steel.
  • Coal Mining industry includes companies engaged in the exploration for and/or mining of coal.
  • Chemicals industry includes companies that produce and/or distribute commodity and specialty chemicals. The companies manufacture three general classes of products: (1) basic chemicals, such as acids, alkalies, salts, and organic chemicals; (2) chemical products to be used in further manufacture, such as synthetic fibers, plastics materials, dry colors, and pigments; and (3) finished chemical products to be used as materials or supplies in other industries, such as paints, fertilizers, and explosives.

Industry Ranking of Monsanto

With $13.5 billion revenues, Monsanto ranked number 5 of all the companies in the US Chemicals industry. There were a total of 66 public companies in the US Chemicals industry that had revenues greater than $50 million during 2016.

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

  1. Dow Chemical ($48.2 billion)
  2. Lyondellbasell Industries ($29.2 billion)
  3. DuPont ($24.6 billion)
  4. PPG Industries ($14.8 billion)
  5. Monsanto ($13.5 billion)
  6. Sherwin Williams ($11.9 billion)
  7. Praxair ($10.5 billion)
  8. Huntsman ($9.7 billion)
  9. Air Products ($9.5 billion)
  10. Eastman ($9 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 Monsantoand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of monsanto

Lyondellbasell Industries (LYB) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Lyondellbasell Industries N.V. with $29 billion revenues in the year 2016 was the number 2 Chemicals company. Read this report to know the top competitors of Lyondellbasell Industries and identify growth and cost optimization opportunities of Lyondellbasell Industries

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

Dupont E I De Nemours & Co with $25 billion revenues in the year 2016 was the number 3 Chemicals company. Read this report to know the top competitors of DuPont and identify growth and cost optimization opportunities of DuPont

PPG Industries (PPG) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

PPG Industries Inc with $15 billion revenues in the year 2016 was the number 4 Chemicals company. Read this report to know the top competitors of PPG Industries and identify growth and cost optimization opportunities of PPG Industries

Sherwin Williams (SHW) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Sherwin Williams Co with $12 billion revenues in the year 2016 was the number 6 Chemicals company. Read this report to know the top competitors of Sherwin Williams and identify growth and cost optimization opportunities of Sherwin Williams

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

Praxair Inc with $11 billion revenues in the year 2016 was the number 7 Chemicals company. Read this report to know the top competitors of Praxair and identify growth and cost optimization opportunities of Praxair

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

Huntsman Corp with $10 billion revenues in the year 2016 was the number 8 Chemicals company. Read this report to know the top competitors of Huntsman and identify growth and cost optimization opportunities of Huntsman

Revenues Analysis

Monsanto (MON) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Monsanto Co (MON) from 2012 to 2016. Monsanto generated a total of $13.5 billion revenues during 2016. Monsanto reported a revenue growth of -10% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in August.

Monsanto (MON) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Monsanto Co (MON) from 2002 to 2016. Monsanto generated a total of $13.5 billion revenues during 2016. Monsanto reported a revenue growth of -10% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in August.

Monsanto (MON) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Monsanto Co (MON) revenue growth with Chemicals industry growth during the last five years from 2012 to 2016. Monsanto reported a revenue growth of -10% year-over-year during 2016. The Chemicals industry growth was -4.1% year-over-year during 2016. Monsanto growth was slower than the industry during 2016.

Profit Analysis

Monsanto (MON) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Monsanto Co (MON) from 2012 to 2016. Monsanto reported a total net income of $1.3 billion during 2016. Monsanto generated a total of $13.5 billion revenues during 2016. Monsanto net profit margin was 9.9% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in August.