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Sageworks Blog


On list of slowest-growing industries, housing-related businesses find a home

Four of the 10 slowest-growing industries over the last 12 months were tied to the housing market, according to preliminary estimates released recently by Sageworks Inc., a financial information company. That’s not suprising, considering housing has continued to claw its way back from the depths of the housing bubble’s burst, Sageworks analyst Brad Schaefer said [More]


Watch these fast-growing industries in 2013

Sageworks, a financial information company, is out with a list of fast-growing industries that bear watching in 2013. A financial statement analysis of privately held companies in Sageworks’ database shows that over the last 12 months, many of the fastest growing industries are tied to manufacturing and construction. That’s not surprising considering the pivotal role manufacturing and construction have played in the economic recovery so far. [More]


Private companies’ current business trends still positive - SageworksStats @

President Obama’s statement earlier this month that the private sector “is doing fine” prompted a wave of criticism, and there are certainly signs that economic confidence among consumers and businesses has weakened recently. But a new real-time measure of key financial metrics for privately held companies in the U.S. shows sales and profitability trends remain solid, even if hiring continues to disappoint. [More]


Business booming for IT providers

Facebook’s (NYSE:FB) troubled initial public offering, as well as cautious financial outlooks by tech giants Dell (NASDAQ:DELL) and Cisco (NASDAQ:CSCO) in recent weeks have some traders of technology stocks worrying that the tech boom may be over. But at least for privately held companies involved in computer systems design and related services, business remains strong, according to recent sales and profit margin data from Sageworks, a financial information company. [More]


Private-company sales, margin growth continue - Sageworks Stats @

Privately held U.S. companies – the millions of businesses that drive job creation and GDP –are growing sales so far this year at about the same rate as they did for all of 2011, according to recent data from Sageworks Inc., a financial information company. [More]


Private company sales, GDP continue to grow, but what about unemployment?

New data from Sageworks, a financial information company, shows that privately held companies in the United States saw average sales growth of 8.3 percent in the 12-month period ending in April 2012. That’s up slightly from the 2011 growth rate of around 8.2 percent, and up significantly from the low in 2009, when sales declined by an average of almost 6 percent.  Private companies drive over 50 percent of GDP, which grew at an annual rate of 2.2 percent in the first quarter, according to the latest government data. While private company sales and U.S. GDP have been growing consecutively for over two years, another important economic indicator, the national unemployment rate, now at 8.2 percent, has not improved at a similar rate. “In reviewing the numbers, the fear now is that we may be running out of runway before the onset of another recession,” said Sageworks CEO Brian Hamilton, a noted expert on privately held companies. “We will not be surprised to see continued growth in GDP given the fact that privately held companies continue to grow at a healthy rate.  However, what is becoming slightly concerning is that the unemployment rate is not decreasing at a fast enough rate.” In general, and looking over a long period of time, the average expansionary cycle is approximately 4 years, and the average recessionary period is one year, Hamilton explained. “Historically, it has taken approximately 12 to 20 months for unemployment to fall in an expansion to roughly pre-recession levels,” he said. “Right now, we are into the 34th month of the recovery, and yet unemployment remains too high.  If we don’t get employment up, we may be bumping into the next recession, during which time we cannot expect job growth.”


Does size matter? Sales growth, margins by company size

Privately held companies have a huge impact on the U.S. economy, and new data from Sageworks Inc., a financial information company, shows that sales and margin performance through the recession and so far in the recovery has varied, depending on the size of the company. Data showed that firms with the highest annual revenues in the Sageworks database have seen the sharpest rebound in sales since 2009. Meanwhile, the very smallest firms have seen the biggest improvement in net profit margin since 2009. [More]


It wasn't overnight, but private hotels have turned around

Privately owned hotels have weathered a difficult recession and are back on a profitable path. The industry posted positive net profit margins in 2011 for the first time in three years, and sales increased about 8 percent, according to a financial statement analysis of privately owned hotels by Sageworks. [More]


Who's hiring?

Last week's jobs report showed that fewer-than-expected positions were added in March, stoking concern that the economy isn’t growing fast enough. But several industries that have driven a lot of the hiring over the last year continued to add workers last month.

Who’s been hiring, and which industries have the kind of business fundamentals that could pave the way for adding more jobs? [More]


Taking the pulse: Private nursing care centers

Privately owned nursing care facilities posted lower sales growth than other parts of the health care industry in 2011 and than private companies as a whole, according to Sageworks' analysis of financial statements. [More]