Business Analysis of Navistar International

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Navistar International

NAVISTAR INTERNATIONAL

Business Overview

Navistar International Corporation manufactures and sells commercial and military trucks, diesel engines, school and commercial buses, and service parts for trucks and diesel engines worldwide. The company operates through four segments: Truck, Parts, Global Operations, and Financial Services. It manufactures and distributes Class 4 through 8 trucks and buses in the common carrier, private carrier, government, leasing, construction, energy/petroleum, military vehicle, and student and commercial transportation markets under the International and IC brands; and designs, engineers, and produces sheet metal components, including truck cabs and engines. The company also provides customers with proprietary products needed to support the International commercial and military truck, IC bus, and engine lines, as well as other product lines; and a selection of other standard truck, trailer, and engine aftermarket parts. In addition, it designs and manufactures mid-range diesel engines, as well as provides customers with additional engine offerings in the agriculture, marine, and light truck markets; sells engines to original equipment manufacturers (OEM) for various on-and-off-road applications; and offers contract manufacturing services under the MWM brand to OEMs for the assembly of their engines. Further, the company provides retail, wholesale, and lease financing of products of its trucks and parts, as well as financing for wholesale and retail accounts receivable. It markets its commercial products through an independent dealer network, as well as through distribution and service network retail outlets; and its reconditioned used trucks to owner-operators and fleet buyers through its network of used truck dealers. As of October 31, 2016, it had approximately 728 outlets in the United States and Canada, and 94 outlets in Mexico. Navistar International Corporation was founded in 1902 and is headquartered in Lisle, Illinois.

Navistar International

Navistar International


R&P Rank: 342
Sector: Automobiles and Parts
Industry:Automobiles
H.Q Location:Illinois
Website: www.navistar.com
Company Address:
2701 NAVISTAR DRIVE, LISLE IL 60532
Ph:331-332-5000

Business Analysis of Navistar International

The Automobiles and Parts 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 Navistar International 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 Navistar International 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 Navistar International with an interactive chart.

  1. Revenue Growth: Navistar International reported a revenue growth of -20.0% year-on-year during 2016. Automobiles Industry grew at 4.4% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Navistar International spent 84.0% of its total revenues on COGS. Automobiles industry average (COGS share of revenue) in the same period was 86.6%
  3. R&D share of Revenues: As a percentage of revenue, Navistar International spent 3.0% of its total revenues on R&D. Automobiles industry average R&D spending in the same period was 0.4%
  4. SG&A share of Revenues: As a percentage of revenue, Navistar International spent 9.9% of its total revenues on Sales, Marketing, and General Administration (SG&A). Automobiles industry average SG&A spending in the same period was 8.0%
  5. Inventory share of Revenues: As a percentage of revenue, Navistar International spent 11.6% of its total revenues on Inventories. Automobiles industry average Inventory spending in the same period was 8.0%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Navistar International invested 13.7% of its total revenues on Accounts Payable (A/P) Automobiles industry average Accounts Payable investment in the same period was 14.6%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Navistar International invested 24.3% of its total revenues on Accounts Receivable (A/R). Automobiles industry average Accounts Receivable investment in the same period was 47.5%
  8. PP&E share of Revenues: As a percentage of revenue, Navistar International invested 15.3% of its total revenues on Property, Plants, and Equipments (PP&E). Automobiles industry average PPE investment in the same period was 34.0%
  9. Intangibles share of Revenues: As a percentage of revenue, Navistar International invested 1.1% of its total revenues on Intangibles. Automobiles industry average Intangibles investment in the same period was 2.9%
  10. Net Margins: Navistar International Net Margins in the year 2016 were -1.2%. Automobiles industry average Net Margins in the same period were 4.1%

Sector and Industry Association of Navistar International

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.

Navistar International is associated with Industrials Sector Group, Automobiles and Parts Sector, and Automobiles Industry.

Automobiles and Parts sector is comprised of the following industries: Automobiles; Auto Parts. The definitions for each of the industries is as follows:

  • Automobiles industry includes manufacturers of passenger vehicle that includes Cars, SUVs etc. and recreational vehicles including motorcycles like Harley Davidson. Companies making boats and other recreational vehicles are also part of Automobiles industry.
  • Auto Parts industry includes manufacturers and distributors of automobile parts including engines, batteries and also tires.

Industry Ranking of Navistar International

With $8.1 billion revenues, Navistar International ranked number 4 of all the companies in the US Automobiles industry. There were a total of 18 public companies in the US Automobiles industry that had revenues greater than $50 million during 2016.

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

  1. General Motors ($166.4 billion)
  2. Ford Motor ($151.8 billion)
  3. PACCAR ($17 billion)
  4. Navistar International ($8.1 billion)
  5. Tesla Motors ($7 billion)
  6. Oshkosh ($6.3 billion)
  7. Harley-Davidson ($6 billion)
  8. Thor Industries ($4.6 billion)
  9. Polaris Industries ($4.5 billion)
  10. Brunswick ($4.5 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 Navistar Internationaland its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of navistar-international

General Motors (GM) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

General Motors Co with $166 billion revenues in the year 2016 was the number 1 Automobiles company. Read this report to know the top competitors of General Motors and identify growth and cost optimization opportunities of General Motors

Ford Motor (F) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Ford Motor Co with $152 billion revenues in the year 2016 was the number 2 Automobiles company. Read this report to know the top competitors of Ford Motor and identify growth and cost optimization opportunities of Ford Motor

PACCAR (PCAR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

PACCAR Inc with $17 billion revenues in the year 2016 was the number 3 Automobiles company. Read this report to know the top competitors of PACCAR and identify growth and cost optimization opportunities of PACCAR

Tesla Motors (TSLA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Tesla Motors Inc with $7 billion revenues in the year 2016 was the number 5 Automobiles company. Read this report to know the top competitors of Tesla Motors and identify growth and cost optimization opportunities of Tesla Motors

Oshkosh (OSK) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Oshkosh Corp with $6 billion revenues in the year 2016 was the number 6 Automobiles company. Read this report to know the top competitors of Oshkosh and identify growth and cost optimization opportunities of Oshkosh

Harley-Davidson (HOG) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Harley-Davidson Inc with $6 billion revenues in the year 2016 was the number 7 Automobiles company. Read this report to know the top competitors of Harley-Davidson and identify growth and cost optimization opportunities of Harley-Davidson

Revenues Analysis

Navistar International (NAV) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Navistar International Corp (NAV) from 2012 to 2016. Navistar International generated a total of $8.1 billion revenues during 2016. Navistar International reported a revenue growth of -20% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in October.

Navistar International (NAV) Revenues And Revenue Growth From 2003 To 2016

This report provides the last fourteen years revenues and revenue growth of Navistar International Corp (NAV) from 2003 to 2016. Navistar International generated a total of $8.1 billion revenues during 2016. Navistar International reported a revenue growth of -20% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in October.

Navistar International (NAV) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Navistar International Corp (NAV) revenue growth with Automobiles industry growth during the last five years from 2012 to 2016. Navistar International reported a revenue growth of -20% year-over-year during 2016. The Automobiles industry growth was 4.4% year-over-year during 2016. Navistar International growth was slower than the industry during 2016.

Profit Analysis

Navistar International (NAV) Net Profit And Net Margin From 2015 To...

This report provides the last two years net profit and net margin of Navistar International Corp (NAV) from 2015 to 2016. Navistar International reported a total net income of -$97 million during 2016. Navistar International generated a total of $8.1 billion revenues during 2016. Navistar International net profit margin was -1.2% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in October.