--- title: "Trading Companies" description: "11 SEC filers are classified under the Standard Industrial Classification codes that describe the trading companies & distributors industry." canonical: https://www.getswoopr.com/stocks/industries/industrials/trading-companies-and-distributors/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Trading Companies & Distributors Industry ## Direct Answer 11 SEC filers are classified under the Standard Industrial Classification codes that describe the trading companies & distributors industry, and their latest annual reports show $22.5 billion of combined revenue and a median operating margin of 7.5%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Trading companies and distributors buy and resell industrial goods, commodities and equipment, earning a margin and often providing financing and logistics. Scale and supplier relationships drive results. The first numbers to compare across companies here are revenue and gross margin, inventory turns and operating margin. ## Key Industry Metrics - **Revenue and gross margin**: Sales and the difference between resale price and purchase cost as a share of sales. Margins are modest, so read changes in light of commodity prices and product mix. - **Inventory turns**: Cost of goods sold divided by average inventory, showing how often stock is sold and replaced. Higher turns mean less cash tied up, and a drop may signal slowing sales or overstock. - **Operating margin**: Operating profit as a share of sales after selling, distribution and administrative costs. Thin margins leave little room for price competition or inventory write-downs. - **Customer concentration**: Share of revenue coming from the largest customers. High concentration makes results sensitive to one account, and loss or renegotiation can move sales and margin. - **Working capital**: Receivables and inventory less payables needed to run the business. Distributors tie up cash in stock and credit, so growth consumes cash and a slowdown tends to release it. ## Primary Macro Drivers - **Industrial and commodity activity**: Buyers of equipment and raw goods follow industry output and commodity prices, so activity moves revenue and gross margin. - **Supplier terms**: Credit terms, exclusive rights and rebates decide product access and margin, so supplier relationships shape competitiveness. - **Construction and rental demand**: Contractors and rental fleets purchase equipment and parts, so building activity moves volumes. - **Pricing**: Resale prices follow supplier and market costs, so how well pricing keeps its spread decides gross margin. ## Major Risks - **Commodity swings**: Price drops hit revenue and inventory value, while spikes tie up cash; watch gross margin and inventory writedowns. - **Thin margins**: Small spreads make profit sensitive to small cost or price moves, so execution matters; watch operating margin consistency. - **Inventory risk**: Goods bought ahead of demand can lose value or sit unsold, forcing markdowns; watch inventory turns and write-downs. - **Credit**: Selling on terms exposes the firm to customer default, especially in downturns; watch receivables aging, allowances and bad debt expense. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Cyclical | | Capital Intensity | Low | | Regulatory Intensity | Low | | Industry Maturity | Mature | | Geographic Importance | Global | ## Trading Companies & Distributors Filers in the SEC Record 11 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 5084, 5080, 5099. Their latest fiscal years end between 2025 and 2026, and together they reported $22.5 billion of revenue. Median revenue growth over the prior year was 1.9%. Median operating margin was 7.5% and median net margin 5.2%. Median total liabilities were 46% of total assets, and 9 of 11 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Core & Main, Inc.](https://www.getswoopr.com/stocks/companies/core-and-main-inc/) | $7.6 billion | 2.8% | 9.4% | 6.0% | FY 2026 | | [Applied Industrial Technologies Inc](https://www.getswoopr.com/stocks/companies/applied-industrial-technologies-inc/) | $4.6 billion | 1.9% | 10.9% | 0.0% | FY 2025 | | [Msc Industrial Direct Co Inc](https://www.getswoopr.com/stocks/companies/msc-industrial-direct-company-inc/) | $3.8 billion | -1.3% | 8.0% | 5.3% | FY 2025 | | [Distribution Solutions Group, Inc.](https://www.getswoopr.com/stocks/companies/distribution-solutions-group-inc/) | $2.0 billion | 9.8% | 4.0% | 0.4% | FY 2025 | | [Alta Equipment Group Inc.](https://www.getswoopr.com/stocks/companies/alta-equipment-group-inc/) | $1.8 billion | -2.2% | 1.3% | -4.4% | FY 2025 | | [Global Industrial Co](https://www.getswoopr.com/stocks/companies/global-industrial-company/) | $1.4 billion | 4.8% | 7.1% | 5.2% | FY 2025 | | [Willis Lease Finance Corp](https://www.getswoopr.com/stocks/companies/willis-lease-finance-corporation/) | $730 million | 28.3% | 14.3% | 15.6% | FY 2025 | | [Aersale Corp](https://www.getswoopr.com/stocks/companies/aersale-corporation/) | $335 million | -2.8% | 4.7% | 2.6% | FY 2025 | The 8 largest of 11 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Trading Companies & Distributors guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company. ### More in Industrials - [Industrials sector overview](https://www.getswoopr.com/stocks/industries/industrials/) - [Transformers](https://www.getswoopr.com/stocks/industries/industrials/transformers/) - [Toll Road Operators](https://www.getswoopr.com/stocks/industries/industrials/toll-road-operators/) - [Transportation](https://www.getswoopr.com/stocks/industries/industrials/transportation/) - [Third-Party Logistics](https://www.getswoopr.com/stocks/industries/industrials/third-party-logistics/) - [Transportation Infrastructure](https://www.getswoopr.com/stocks/industries/industrials/transportation-infrastructure/) - [Test & Measurement Equipment](https://www.getswoopr.com/stocks/industries/industrials/test-and-measurement-equipment/) - [Truckload Trucking](https://www.getswoopr.com/stocks/industries/industrials/truckload-trucking/) - [Taxi & Mobility Services](https://www.getswoopr.com/stocks/industries/industrials/taxi-and-mobility-services/) ### Put it to work - [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/) - [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/) - [Company research](https://www.getswoopr.com/stocks/companies/) - [All industries](https://www.getswoopr.com/stocks/industries/) ## Frequently Asked Questions What are the main KPIs for the Trading Companies & Distributors industry? Key performance indicators for the Trading Companies & Distributors industry include: Revenue and gross margin, Inventory turns, Operating margin, Customer concentration, Working capital. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Trading Companies & Distributors industry? The Trading Companies & Distributors industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing. What are the biggest risks in the Trading Companies & Distributors industry? The primary risks for Trading Companies & Distributors companies include: Commodity swings, Thin margins, Inventory risk, Credit. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).