Business Analysis of United States Steel

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of United States Steel

UNITED STATES STEEL

Business Overview

United States Steel Corporation produces and sells flat-rolled and tubular steel products primarily in North America and Europe. It operates through three segments: Flat-Rolled Products (Flat-Rolled), U. S. Steel Europe (USSE), and Tubular Products (Tubular). The Flat-Rolled segment offers slabs, rounds, strip mill plates, sheets, and tin mill products. This segment serves customers in the service center, conversion, automotive, construction, container, and appliance and electrical markets. The USSE segment provides slabs, sheets, strip mill plates, tin mill products, and spiral welded pipes, as well as heating radiators and refractory ceramic materials. This segment serves customers in the construction, service center, conversion, container, transportation, appliance and electrical, oil, gas, and petrochemical markets. The Tubular segment offers seamless and electric resistance welded steel casing and tubing products; and standard and line pipe and mechanical tubing products primarily to customers in the oil, gas, and petrochemical markets. The company also provides railroad services; and owns, develops, and manages various real estate assets. United States Steel Corporation was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania.

United States Steel

United States Steel


R&P Rank: 285
Sector: Basic Materials
Industry:Metal Mining
H.Q Location:Pennsylvania
Website: www.ussteel.com
Company Address:
600 GRANT ST, ROOM 1500, PITTSBURGH PA 15219-2800
Ph:415-433-2967

Business Analysis of United States Steel

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 United States Steel 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 United States Steel 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 United States Steel with an interactive chart.

  1. Revenue Growth: United States Steel reported a revenue growth of -11.3% 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, United States Steel spent 93.8% 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: United States Steel 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, United States Steel spent 2.5% 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, United States Steel spent 15.3% 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, United States Steel invested 20.2% 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, United States Steel invested 17.3% 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, United States Steel invested 38.8% 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, United States Steel invested 1.7% of its total revenues on Intangibles. Metal Mining industry average Intangibles investment in the same period was 10.6%
  10. Net Margins: United States Steel Net Margins in the year 2016 were -4.3%. Metal Mining industry average Net Margins in the same period were -3.7%

Sector and Industry Association of United States Steel

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.

United States Steel 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 United States Steel

With $10.3 billion revenues, United States Steel ranked number 4 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 United States Steeland its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of united-states-steel

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

Nucor Corp with $16 billion revenues in the year 2016 was the number 1 Metal Mining company. Read this report to know the top competitors of Nucor and identify growth and cost optimization opportunities of Nucor

Freeport-McMoRan (FCX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Freeport-McMoRan Inc with $15 billion revenues in the year 2016 was the number 2 Metal Mining company. Read this report to know the top competitors of Freeport-McMoRan and identify growth and cost optimization opportunities of Freeport-McMoRan

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

Arconic Inc. with $12 billion revenues in the year 2016 was the number 3 Metal Mining company. Read this report to know the top competitors of Arconic and identify growth and cost optimization opportunities of Arconic

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

Alcoa Corp with $9 billion revenues in the year 2016 was the number 5 Metal Mining company. Read this report to know the top competitors of Alcoa and identify growth and cost optimization opportunities of Alcoa

Reliance Steel & Aluminum (RS) Business Analysis – Analyze Historical Performance,...

Reliance Steel & Aluminum Co with $9 billion revenues in the year 2016 was the number 6 Metal Mining company. Read this report to know the top competitors of Reliance Steel & Aluminum and identify growth and cost optimization opportunities of Reliance Steel & Aluminum

Steel Dynamics (STLD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Steel Dynamics Inc with $8 billion revenues in the year 2016 was the number 7 Metal Mining company. Read this report to know the top competitors of Steel Dynamics and identify growth and cost optimization opportunities of Steel Dynamics

Revenues Analysis

United States Steel (X) Revenues And Revenue Growth From 2012 To...

This report provides the last five years revenues and revenue growth of United States Steel Corp (X) from 2012 to 2016. United States Steel generated a total of $10.3 billion revenues during 2016. United States Steel reported a revenue growth of -11.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

United States Steel (X) Revenues And Revenue Growth From 2002 To...

This report provides the last fifteen years revenues and revenue growth of United States Steel Corp (X) from 2002 to 2016. United States Steel generated a total of $10.3 billion revenues during 2016. United States Steel reported a revenue growth of -11.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

United States Steel (X) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of United States Steel Corp (X) revenue growth with Metal Mining industry growth during the last five years from 2012 to 2016. United States Steel reported a revenue growth of -11.3% year-over-year during 2016. The Metal Mining industry growth was -5.5% year-over-year during 2016. United States Steel growth was slower than the industry during 2016.

Profit Analysis

United States Steel (X) Net Profit And Net Margin From 2014...

This report provides the last three years net profit and net margin of United States Steel Corp (X) from 2014 to 2016. United States Steel reported a total net income of -$440 million during 2016. United States Steel generated a total of $10.3 billion revenues during 2016. United States Steel net profit margin was -4.3% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.