Industry and Company Research
This guide will introduce you to resources and strategies useful for industry and company research. If you have questions about these materials or have problems connecting to any of the resources, please contact the Joyner Library Reference Desk, or phone (252.328.6677). The guide is divided into five parts:
Step 1: Industry Structure (NAICS and SIC codes)
Step 2: Industry & Company Profiles
Step 3: SEC Filings
Step 4: Financial Ratios, Statements & Statistics
Step 5: Articles Useful for Company & Industry Analysis
Step 1: Industry Structure(NAICS and SIC codes)
Some information providers organize the data by NAICS and SIC classification codes. NAICS (North American Industry Classification System) is the official classification system used in the U.S. It uses a hierarchical system of up to six digits to group together establishments that use the same or similar processes to produce goods or services. Most government agencies, including the Census Bureau, report business activity using NAICS.
SIC codes, first adopted in the 1930s, are still used by the Securities & Exchange Commission and some private data sources. Thus, it is still important to find the SIC code applicable to the industry you are researching. It uses a hierarchical system of up to four digits to classify establishments according to their primary economic activity. More info about NAICS and SIC
Most libraries have print copies of the North American Industry Classification System and the Standard Industrial Classification Manual. In Joyner Library, copies are kept at the Reference Desk and in the Business Reference area. Classifications can also be found online:
NAICS 2002: http://www.census.gov/epcd/naics02/
SIC: http://www.osha.gov/pls/imis/sicsearch.html
Many SIC classifications have been narrowed or divided, so that one SIC may now be given several NAICS classifications. Correspondence Tables show the relationship between SIC and NAICS and vice versa.
Correspondence Table:
2002 NAICS Matched to SIC: http://www.census.gov/epcd/naics02/N02TOS87.HTM
SIC Matched to 2002 NAICS: http://www.census.gov/epcd/naics02/S87TON02.HTM
Tip: If you are unable to determine the classification code for an industry but know a company that is part of that industry, look up the company inMergent Online . The first screen - the Business Summary - will include the primary NAICS and SIC assigned to that company. LexisNexis Academic Business - Company Dossier is also a good source for finding the NAICS and SIC codes assigned to a specific company.
Step 2: Industry & Company Profiles
These profiles can help you learn about the current environment in the industry, trends, general operating conditions, and market size, share and segmentation. Company-specific information may include a SWOT analysis, competitors, and analysts' commentary. Some of our favorite databases are listed first.
1. IBISWorld
Provides information on every industry in the US economy at the 5-digit NAICS level. Reports cover market characteristics, segmentation, industry conditions, industry performance, key competitors, key success factors, and outlook. Reports are updated one to four times per year. Users may search or browse, and download reports in Microsoft Word or PDF format. User guide for IBISWorld.
2. Standard & Poor's NetAdvantage
Includes Industry Surveys -- one of the best sources for industry information; provides information similar to what is found in IBISWorld. About 50 industries are covered. Each profile is 20-25 pages in length and includes information about the current environment, trends, how the industry operates, composite industry data, and comparative company analyses. Sidebars often provide market share data. The reference section usually provides contact information and web addresses for trade associations, government agencies, and publications relevant to the industry, such as those listed in Sections D. & E., below. Each industry survey is updated twice a year. The Companies area includes stock and bond information, price quotes, analysts' consensus opinions, corporate actions, and news.
3. MarketLine
Industry profiles contain: 5 year historical and 5 year forecast market values and/or volumes, market segmentations, five forces analysis, and discussion of the competitive landscape, including main players, distribution channels and regulatory issues . Company profiles include business summary, history, products, competitors and locations. Most company profiles contain a SWOT analysis.
4. Mergent Online
Company information includes NAICS and SIC codes, business description, history, subsidiaries, executives, competitors, financials and ratios. Mergent Industry Reports cover fewer industries than IBISWorld or NetAdvantage, but can provide useful information. A limited number of industry ratios can be calculated using Mergent.
5. Morningstar.com Library Edition
Information about publicly-held companies and their stocks, including a profile, current and archived analyst reports, current and historical stock performance and financial statements, ratios, and price charts.
6. Euromonitor GMID
Provides international business intelligence on countries, consumers, companies, and industries. Offers access to more than 1 million country, consumer lifestyle, and market statistics; 4500 market research reports (global, country, industry, company, and lifestyle); 205 country profiles; company market share and brand share rankings. User guide for Euromonitor GMID.
7. Hoover's Company Reports
Quick access to company overview, history, basic financials, operations, and competitors, This subscription service provides more information than the free Hoover's report.
8. Value Line Investment Survey
One-to-two page industry profiles focus on past and projected performance of stocks within the industry, with an emphasis on growth potential and safety. Discusses the current environment in the industry and the immediate and longer-term prospects for the industry. Updated every 13 weeks. Includes a table of composite statistics for the industry, which help investors examine trends in the industry and provide a benchmark for comparisons. Also provided one-page reports with analyst commentary and financial data for 1,700 publicly-held US companies.
9. Encyclopedia of American Industries
Entries cover every industry in the SIC system. Includes an industry snapshot and information about the industry's development, organization, current conditions, industry leaders, research and technology.
10. Trade associations
Many trade associations compile and disseminate industry data. While some publications must be purchased, association websites often include free industry overviews. Examples of free profiles include:
11. Trade publications
Trade publications provide similar information, often in a year-end article or report. Some trade periodicals are available free online, while others can be accessed through ECU subscription databases such as ABI/Inform Complete and Business Source Premier. Examples include:
Global Cosmetic Industry's State of the Industry [available fulltext via ABI/Inform Complete]
Product & Industry Prospects from Milling and Baking News [free]
12. Yahoo! Industry Center
Profiles of over 100 industries from Hoover's Online, plus news and market information.
13. Industry Information Resources
From ValuationResources.com. Industry Resources Reports list resources available from trade associations, industry publications, and research firms which address subjects such as industry overview, issues, trends, and outlook, financial benchmarking, compensation surveys, and valuation resources. Reports are available for more than 230 industries. Caution: some of the resources are limited to members or are for sale.
Step 3: SEC Filings
The EDGAR database at the Securities & Exchange Commission website contains a wealth of data produced by the companies themselves. Companies that meet certain criteria must make these filings at regular intervals. For example, the annual 10-K report must be filed by publicly-held US companies that have more than 500 investors and more than $10 million in total assets. Foreign companies that sell ADRs in the US must file a similar report, called a 20-F. The schedule DEF 14A (proxy statement) contains unique information, including the composition of the board of directors, their compensation, reports of committees, and total executive compensation. Other important filings include the S-1 (registration statement), 10-Q (quarterly report), and 8-K (current report). SEC filings are often used as the source of information found in databases that provide company profiles and financial data. It's good to remember that the SEC filings are the original source for much of this data, and that they are free!
Step 4: Financial Ratios & Statistics
A. Industry Ratios & Composite Statements
Industry ratios can be used to measure the average performance of an industry as a whole and identify trends. The industry average can provide a benchmark for comparing the performance of Individual companies within the industry. Head-to-head comparisons as well as comparisons over time can help assess performance, identify strengths and weaknesses, and predict future performance.
1. Research Insight
Research Insight on the Web can be used to calculate average ratios for a set of companies that you define. Research Insight on the Web is loaded on computers in Joyner Library and the College of Business Lab. Instructions for downloading Research Insight on the Web to student computers are available at: http://www.ecu.edu/cs-lib/reference/RI.cfm. Once you download the software for Research Insight on the Web, you will need to open Excel to access it. Follow these instructions to use Research Insight on the Web to calculate industry ratios.
Some students use the Research Insight CD-ROM (accessible from Joyner Library and the College of Business Lab) to generate industry ratios. Six years of data are shown on the initial report, but you can get data for older years, if needed. Industries can be defined by SIC, NAICS, or other classification systems. Or, you can choose specific companies and define those as the basis for comparison. A PowerPoint lesson showing how to use the Research Insight CD-ROM to calculate industry ratios is available here.
2. eStatement Studies (RMA)
Online version of RMA Annual Statement Summaries. Complete performance metrics are derived from company financial statements. Covers 2003-present. Older years are available in the Joyner Library Stacks, Call Number HF 5681 B2 R6.
3. Industry Norms & Key Business Ratios
Joyner Library has it in print only -- no online access. Be aware that the data is usually at least one year behind what can be found in Research Insight. In Joyner Library, the latest 5 years of Industry Norms are kept in the Business Reference area; older years are in the Joyner Stacks, Call Number HF 5681 R25 I526. Arranged by SIC code. Presents common-size financial statements for the industry and 14 key ratios for the median, upper, and lower quartiles. Published by Dun & Bradstreet.
4. Almanac of Business and Industrial Financial Ratios
Print publication. At Joyner Library, the latest 5 years are kept in the Business Reference area; older years are in the Joyner Stacks, Call Number HF 5681 R25 A45. Offers norms, ratios and a trend analysis for a large number of industries. The data is culled from IRS information so it is published later than the other sources of industry norms. Beginning in 2002, data is organized by NAICS.
B. Industry Statistics from the US Government The US Census Bureau provides a wealth of statistical data about industries. To see a list of reports and other data, go to the US Census site and click on the heading for Business & Industry. Some of the most useful data are found in:
1. Annual Survey of Manufactures (ASM)
Provides sample estimates of statistics for all manufacturing establishments with one or more paid employees. The US Census Bureau conducts the ASM in each of the 4 years between the Economic Census. Statistics include: employment, payroll, value added by manufacture, cost of materials consumed, value of shipments, and detailed capital expenditures. Three reports are issued from the ASM: Statistics for Industry Groups and Industries , which presents data at the three-, four-, five-, and six-digit NAICS levels; Value of Product Shipments, which presents shipments data at the six- and seven-digit NAICS levels; and Geographic Area Statistics, which presents data for each state and D.C. PDF format.
2. Economic Census
The Economic Census profiles the US economy every 5 years (in years ending in 2 and 7). Data is arranged by industry, sector, NAICS, and several other variables. Be sure to look at the Industry Series and the Subject Series, which often include Concentration Ratios.
3. Current Industrial Reports
The Current Industrial Report program provides monthly, quarterly, and annual measures of industrial activity focusing on production and shipments of selected products. The data are used for market analysis, forecasting, and decision-making in the private sector. These surveys measure manufacturing activity in important commodity areas such as textiles and apparel, chemicals, primary metals, computer and electronic components, industrial equipment, aerospace equipment, and consumer goods.
4. Annual Capital Expenditures Survey
Designed to provide detailed and timely information on capital investment in new and used structures and equipment by nonfarm businesses. The data provide facts about trends in capital expenditures useful for identifying business opportunities, product development, and business planning.
5. Quarterly Financial Report for Manufacturing, Mining and Trade Corporations
Based upon an extensive sample survey, the report presents estimated statements of income and retained earnings, balance sheets, and related financial and operating ratios for the domestic operations of all manufacturing corporations with assets over $250,000, and corporations in the mining and trade areas with assets over $50 million. Data are classified by industry and by asset size.
The Bureau of Labor Statistics also provides useful information. The Overview of BLS Statistics by Industry includes links to profiles of 12 industry supersectors; employment, earnings and hours information; employment cost trends; labor productivity; occupational injuries, and more.
Step 5: Current Industry News & Developments
ECU subscribes to databases that contain fulltext articles from hundreds of business magazines, trade publications, and newspapers. These databases can be accessed through the hyperlinks below or from the Joyner Library Databases page..
1. ABI/Inform Complete
Includes Wall Street Journal. Use the Advanced Search feature to search by NAICS code.
2. Business Source Premier
Use the Advanced Search feature to search by NAICS code or description.
3. Lexis/Nexis Academic
Search national and regional newspapers, news wires, transcripts, world news sources and more.
