Business Analysis of Tenneco

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

Business Overview

Tenneco Inc. designs, manufactures, and distributes clean air and ride performance products and systems for light vehicle, commercial truck, off-highway, and other vehicle applications worldwide. The company offers various vehicle emission control products and systems, including catalytic converters and diesel oxidation catalysts, diesel particulate filters, burner systems, lean nitrogen oxide (NOx) traps, hydrocarbon vaporizers and injectors, selective catalytic reduction (SCR)systems, SCR-coated diesel particulate filters (SDPF) systems, urea dosing systems, four-way catalysts, alternative NOx reduction technologies, mufflers and resonators, fabricated exhaust manifolds, pipes, hydroformed assemblies, elastomeric hangers and isolators, and after treatment control units. It also provides ride performance products and systems, such as shock absorbers; struts; vibration control components; kinetic suspension technology systems, dual-mode suspension solutions, semi-active and active suspension systems, and kinetic H2/CVSA continuously variable semi active suspension systems; and other ride performance products comprising load assist products, springs, steering stabilizers, adjustable suspension systems, suspension kits, and modular assemblies. The company sells its products to original equipment vehicle designers and manufacturers, repair and replacement markets, and aftermarket under the Monroe, Kinetic, Fric-Rot, Gas-Matic, Sensa-Trac, OESpectrum, Quick-Strut, Walker, Fonos, XNOx, Mega-Flow, Quiet-Flow, Tru-Fit, DynoMax, Thrush, Rancho, Clevite Elastomers, and Axios brand names. The company was formerly known as Tenneco Automotive Inc. and changed its name to Tenneco Inc. in 2005. Tenneco Inc. was founded in 1987 and is headquartered in Lake Forest, Illinois.

Tenneco

Tenneco


R&P Rank: 328
Sector: Automobiles and Parts
Industry:Auto Parts
H.Q Location:Illinois
Website: www.tenneco.com
Company Address:
500 NORTH FIELD DRIVE, LAKE FOREST IL 60045
Ph:847-482-5000

Business Analysis of Tenneco

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 Tenneco 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 Tenneco 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 Tenneco with an interactive chart.

  1. Revenue Growth: Tenneco reported a revenue growth of 4.8% year-on-year during 2016. Auto Parts Industry grew at 1.1% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Tenneco spent 82.7% of its total revenues on COGS. Auto Parts industry average (COGS share of revenue) in the same period was 74.6%
  3. R&D share of Revenues: As a percentage of revenue, Tenneco spent 1.8% of its total revenues on R&D. Auto Parts industry average R&D spending in the same period was 0.6%
  4. SG&A share of Revenues: As a percentage of revenue, Tenneco spent 6.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Auto Parts industry average SG&A spending in the same period was 13.9%
  5. Inventory share of Revenues: As a percentage of revenue, Tenneco spent 8.5% of its total revenues on Inventories. Auto Parts industry average Inventory spending in the same period was 14.7%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Tenneco invested 17.4% of its total revenues on Accounts Payable (A/P) Auto Parts industry average Accounts Payable investment in the same period was 17.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Tenneco invested 14.9% of its total revenues on Accounts Receivable (A/R). Auto Parts industry average Accounts Receivable investment in the same period was 12.8%
  8. PP&E share of Revenues: As a percentage of revenue, Tenneco invested 15.8% of its total revenues on Property, Plants, and Equipments (PP&E). Auto Parts industry average PPE investment in the same period was 21.0%
  9. Intangibles share of Revenues: As a percentage of revenue, Tenneco invested 0.9% of its total revenues on Intangibles. Auto Parts industry average Intangibles investment in the same period was 14.2%
  10. Net Margins: Tenneco Net Margins in the year 2016 were 4.2%. Auto Parts industry average Net Margins in the same period were 5.3%

Sector and Industry Association of Tenneco

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.

Tenneco is associated with Industrials Sector Group, Automobiles and Parts Sector, and Auto Parts 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 Tenneco

With $8.6 billion revenues, Tenneco ranked number 10 of all the companies in the US Auto Parts industry. There were a total of 38 public companies in the US Auto Parts industry that had revenues greater than $50 million during 2016.

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

  1. Lear ($18.6 billion)
  2. Adient ($16.8 billion)
  3. Delphi Automotive ($16.7 billion)
  4. Genuine Parts ($15.3 billion)
  5. Goodyear Tire & Rubber ($15.2 billion)
  6. AutoZone ($10.6 billion)
  7. Autoliv ($10.1 billion)
  8. Advance Auto Parts ($9.6 billion)
  9. BorgWarner ($9.1 billion)
  10. Tenneco ($8.6 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.

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 Tennecoand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of tenneco

Autoliv (ALV) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Autoliv Inc with $10 billion revenues in the year 2016 was the number 7 Auto Parts company. Read this report to know the top competitors of Autoliv and identify growth and cost optimization opportunities of Autoliv

Advance Auto Parts (AAP) Business Analysis – Analyze Historical Performance, Strategic...

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

BorgWarner (BWA) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Borgwarner Inc with $9 billion revenues in the year 2016 was the number 9 Auto Parts company. Read this report to know the top competitors of BorgWarner and identify growth and cost optimization opportunities of BorgWarner

O’Reilly Automotive (ORLY) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

O'Reilly Automotive Inc with $9 billion revenues in the year 2016 was the number 11 Auto Parts company. Read this report to know the top competitors of O'Reilly Automotive and identify growth and cost optimization opportunities of O'Reilly Automotive

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

LKQ Corp with $9 billion revenues in the year 2016 was the number 12 Auto Parts company. Read this report to know the top competitors of LKQ and identify growth and cost optimization opportunities of LKQ

Dana (DAN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Dana Inc with $6 billion revenues in the year 2016 was the number 13 Auto Parts company. Read this report to know the top competitors of Dana and identify growth and cost optimization opportunities of Dana

Revenues Analysis

Tenneco (TEN) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Tenneco Inc (TEN) from 2012 to 2016. Tenneco generated a total of $8.6 billion revenues during 2016. Tenneco reported a revenue growth of 4.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Tenneco (TEN) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Tenneco Inc (TEN) from 2002 to 2016. Tenneco generated a total of $8.6 billion revenues during 2016. Tenneco reported a revenue growth of 4.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Tenneco (TEN) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Tenneco Inc (TEN) revenue growth with Auto Parts industry growth during the last five years from 2012 to 2016. Tenneco reported a revenue growth of 4.8% year-over-year during 2016. The Auto Parts industry growth was 1.1% year-over-year during 2016. Tenneco growth was faster than the industry during 2016.

Profit Analysis

Tenneco (TEN) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Tenneco Inc (TEN) from 2012 to 2016. Tenneco reported a total net income of $363 million during 2016. Tenneco generated a total of $8.6 billion revenues during 2016. Tenneco net profit margin was 4.2% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

Tenneco (TEN) Net Profit And Net Margin From 2002 To 2016

This report provides the last fifteen years net profit and net margin of Tenneco Inc (TEN) from 2002 to 2016. Tenneco reported a total net income of $363 million during 2016. Tenneco generated a total of $8.6 billion revenues during 2016. Tenneco net profit margin was 4.2% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.