Business Analysis of Ryerson Holding

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Ryerson Holding

RYERSON HOLDING

Business Overview

Ryerson Holding Corporation, together with its subsidiaries, processes and distributes industrial metals in the United States, Mexico, Canada, China, and Brazil. The company offers a line of stainless steel, aluminum, carbon steel, and alloy steels, as well as nickel and red metals in various shapes and forms, including coils, sheets, rounds, hexagons, square and flat bars, plates, structural products, and tubes. It also provides value-added processing and fabrication services ranging from sawing, slitting, blanking, cutting to length, leveling, flame cutting, laser cutting, edge trimming, edge rolling, roll forming, tube manufacturing, polishing, shearing, forming, stamping, punching, and rolling shell plate to radius and beveling; and processing materials. The company serves various industries, such as commercial ground transportation manufacturing, metal fabrication and machine shops, industrial machinery and equipment manufacturing, consumer durables production, HVAC manufacturing, construction equipment manufacturing, food processing and agriculture equipment manufacturing, and oil and gas. Ryerson Holding Corporation was founded in 1842 and is headquartered in Chicago, Illinois.

Ryerson Holding

Ryerson Holding


R&P Rank: 763
Sector: Basic Materials
Industry:Metal Mining
H.Q Location:Illinois
Website: www.ryerson.com
Company Address:
227 W. MONROE ST., 27TH FLOOR, CHICAGO IL 60606
Ph:312-292-5014

Business Analysis of Ryerson Holding

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 Ryerson Holding 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 Ryerson Holding 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 Ryerson Holding with an interactive chart.

  1. Revenue Growth: Ryerson Holding reported a revenue growth of -9.7% year-on-year during 2016. Metal Mining Industry grew at -5.5% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Ryerson Holding spent 80.1% of its total revenues on COGS. Metal Mining industry average (COGS share of revenue) in the same period was 86.3%
  3. R&D share of Revenues: Ryerson Holding R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Ryerson Holding spent 15.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Metal Mining industry average SG&A spending in the same period was 6.3%
  5. Inventory share of Revenues: As a percentage of revenue, Ryerson Holding spent 19.7% of its total revenues on Inventories. Metal Mining industry average Inventory spending in the same period was 20.9%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Ryerson Holding invested 8.1% of its total revenues on Accounts Payable (A/P) Metal Mining industry average Accounts Payable investment in the same period was 9.8%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Ryerson Holding invested 11.4% of its total revenues on Accounts Receivable (A/R). Metal Mining industry average Accounts Receivable investment in the same period was 10.1%
  8. PP&E share of Revenues: As a percentage of revenue, Ryerson Holding invested 13.6% of its total revenues on Property, Plants, and Equipments (PP&E). Metal Mining industry average PPE investment in the same period was 67.7%
  9. Intangibles share of Revenues: As a percentage of revenue, Ryerson Holding invested 5.0% of its total revenues on Intangibles. Metal Mining industry average Intangibles investment in the same period was 10.6%
  10. Net Margins: Ryerson Holding Net Margins in the year 2016 were 0.7%. Metal Mining industry average Net Margins in the same period were -3.7%

Sector and Industry Association of Ryerson Holding

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.

Ryerson Holding is associated with Basic Materials Sector and Metal Mining 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 Ryerson Holding

With $2.9 billion revenues, Ryerson Holding ranked number 14 of all the companies in the US Metal Mining industry. There were a total of 34 public companies in the US Metal Mining industry that had revenues greater than $50 million during 2016.

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

  1. Nucor ($16.2 billion)
  2. Freeport-McMoRan ($14.8 billion)
  3. Arconic ($12.4 billion)
  4. United States Steel ($10.3 billion)
  5. Alcoa ($9.3 billion)
  6. Reliance Steel & Aluminum ($8.6 billion)
  7. Steel Dynamics ($7.8 billion)
  8. A-Mark Precious Metals ($6.8 billion)
  9. Newmont Mining ($6.7 billion)
  10. AK Steel Holding ($5.9 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 Ryerson Holdingand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of ryerson-holding

Southern Copper (SCCO) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Southern Copper Corp with $5 billion revenues in the year 2016 was the number 11 Metal Mining company. Read this report to know the top competitors of Southern Copper and identify growth and cost optimization opportunities of Southern Copper

Commercial Metals (CMC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Commercial Metals Co with $5 billion revenues in the year 2016 was the number 12 Metal Mining company. Read this report to know the top competitors of Commercial Metals and identify growth and cost optimization opportunities of Commercial Metals

Allegheny Technologies (ATI) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Allegheny Technologies Inc with $3 billion revenues in the year 2016 was the number 13 Metal Mining company. Read this report to know the top competitors of Allegheny Technologies and identify growth and cost optimization opportunities of Allegheny Technologies

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

Worthington Industries Inc with $3 billion revenues in the year 2016 was the number 15 Metal Mining company. Read this report to know the top competitors of Worthington Industries and identify growth and cost optimization opportunities of Worthington Industries

Cleveland-Cliffs (CLF) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Cliffs Natural Resources Inc. with $2 billion revenues in the year 2016 was the number 16 Metal Mining company. Read this report to know the top competitors of Cleveland-Cliffs and identify growth and cost optimization opportunities of Cleveland-Cliffs

Carpenter Technology (CRS) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Carpenter Technology Corp with $2 billion revenues in the year 2016 was the number 17 Metal Mining company. Read this report to know the top competitors of Carpenter Technology and identify growth and cost optimization opportunities of Carpenter Technology

Revenues Analysis

Ryerson Holding (RYI) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Ryerson Holding Corp (RYI) from 2012 to 2016. Ryerson Holding generated a total of $2.9 billion revenues during 2016. Ryerson Holding reported a revenue growth of -9.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Ryerson Holding (RYI) Revenues And Revenue Growth From 2011 To 2016

This report provides the last six years revenues and revenue growth of Ryerson Holding Corp (RYI) from 2011 to 2016. Ryerson Holding generated a total of $2.9 billion revenues during 2016. Ryerson Holding reported a revenue growth of -9.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Ryerson Holding (RYI) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Ryerson Holding Corp (RYI) revenue growth with Metal Mining industry growth during the last five years from 2012 to 2016. Ryerson Holding reported a revenue growth of -9.7% year-over-year during 2016. The Metal Mining industry growth was -5.5% year-over-year during 2016. Ryerson Holding growth was slower than the industry during 2016.

Profit Analysis

Ryerson Holding (RYI) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of Ryerson Holding Corp (RYI) from 2012 to 2016. Ryerson Holding reported a total net income of $18.7 million during 2016. Ryerson Holding generated a total of $2.9 billion revenues during 2016. Ryerson Holding net profit margin was 0.7% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.