Old Republic International (ORI)
Founded in 1887, Old Republic International (ORI) engages in insurance underwriting primarily in the U.S. and Canada. The firm owns 134 subsidiaries that operate in all 50 states, 10 Canadian provinces, and three U.S. territories. Old Republic International operates through two main segments: General Insurance Group and the Title Insurance Group, which together generated $6.3 billion in revenue in 2017. General Insurance Group (59% of revenue): offers automobile extended warranty, aviation, commercial automobile, commercial multi-peril, general liability, home warranty, inland marine, travel accident, and workers' compensation insurance products. About 68% of total premiums are from workers compensation and trucking insurance. Title Insurance Group (39% of revenue): offers lenders' and owners' title insurance policies to real estate purchasers and investors [...]
HCP (HCP)
HCP (HCP) is a healthcare REIT that went public in 1985 with 24 skilled nursing facilities (SNFs). Over the decades, the business eventually became a dividend aristocrat with 30 consecutive years of dividend growth. HCP's success was fueled by acquisitions of over 1,200 new healthcare properties, including skilled nursing, medical office buildings (MOBs), life science properties, and hospitals. After a major restructuring plan begun in 2016, the REIT spun off its troubled ManorCare SNFs into Quality Care Properties (QCP), reducing its dividend by more than 30% to reflect is smaller cash flow profile (HCP investors received one share in QCP for every five shares they held of HCP). HCP has continued to make large asset sales in order [...]
Uniti Group (UNIT)
In April 2015, the struggling regional telecom company Windstream (WIN) spun off 80% of its fiber optic cables into an internally managed REIT which was later renamed Uniti Group (UNIT). The use of these assets was leased back to Windstream under a 15-year triple-net lease agreement. Under this arrangement, Windstream pays for maintenance, taxes, insurance, and any upgrade costs. In total, Uniti owns 4.9 million strand miles of fiber optic cables (used to provide broadband internet), as well as 667 telecom towers (227 in the U.S., 440 in Mexico), which serve the wireless phone industry. Uniti is one of the ten largest owners of fiber optic cables in America. Source: Uniti Group Investor Presentation Uniti breaks down its business [...]
Unilever (UL)
With roots going back to 1885, Unilever (UL) was formed by the 1929 merger of Margarine Unie of the Netherlands and U.K. soapmaker Lever Brothers. The company is one of the world's largest consumer staples companies today. Unilever produces over 400 branded products used by more than 2.5 billion people each day in over 190 countries. The company sells its products through more than 30 million global retail outlets and owns 13 of the world's top 50 brands, each of which generates over 1 billion Euros in annual sales. Source: Unilever In 2018, the company consolidated its operations into three main business segments: Personal Care, Foods & Refreshment, and Home Care. Personal Care (39% of revenue, 47% of profits): [...]
GlaxoSmithKline (GSK)
With roots tracing back to 1715 in London, GlaxoSmithKline (GSK) is one of the world’s largest pharmaceutical companies. The business has nearly 100,000 employees and operates in more than 150 countries. GlaxoSmithKline has three primary business segments: Pharmaceuticals (57% of revenue, 66% of segment profits): patented drugs treating bacterial, viral (including HIV), as well as respiratory, cardiovascular, urogenital, metabolic, dermatological, and immuno-inflammatory conditions. Vaccines (17% of revenue, 18% of segment profits): produces and distributes 25 vaccines around the world (about 800 million doses annually) to prevent diseases such as Meningitis, Hepatitis A, Hepatitis B, Tetanus, HPV, Diphtheria, Influenza, Pertussis, Measles, Mumps, Rubella, Typhoid, Varicella (Chicken Pox), Rotavirus, and Pneumococcal Pneumonia. Consumer Healthcare (26% of revenue, 15% of segment profits): [...]
Nike (NKE)
Founded as Blue Ribbon Sports in 1964, the company changed its name to Nike (NKE) in 1971 and is the largest sports footwear and apparel company in the world today. The global business sells shoes, sports apparel, equipment, and accessories in nine major market segments: basketball, Air Jordan, football, men’s and women’s training, action sports, sportswear, and golf. Some of its key brands are Nike, Jordan, Hurley, and Converse. Nike has three main reporting units: Footwear, Apparel, and Equipment. The Footwear segment is by far the largest source of sales, but apparel is the major growth driver. Footwear: 65% of revenue, growing at 2% in constant currency basis Apparel: 31% of revenue, growing at 7% in constant currency [...]
Omnicom (OMC)
Omnicom (OMC) was formed in 1986 and is one of the largest providers of advertising and marketing communication services to over 5,000 clients in more than 100 countries. As a full-service agency, Omnicom provides numerous services, including designing ad campaigns, making the actual ads, determining where the ads should be placed and distributed, media buying, account management, public relations, consulting, and more. Most clients use ad agencies to perform all tasks of a campaign and prefer to conduct most of their business with just one or two agencies to streamline costs and efficiencies. Omnicom holds more than 1,500 advertising agencies that specialize in over 30 marketing disciplines, including branding, content marketing, digital marketing, data analytics, instore design, advertising, [...]
Kraft Heinz (KHC)
Kraft Heinz (KHC) has roots dating back to 1869. The company was formed by the $45 billion merger of Heinz and Kraft in 2015 which created the fifth largest food maker in the world, and the third largest in the U.S. with more than $25 billion in revenue. Today Kraft Heinz operates 83 manufacturing facilities around the world. The company sells products in over 190 countries under numerous household brand names such as: Heinz, Kraft, Oscar Mayer, Philadelphia, Velveeta, Lunchables, Planters, Maxwell House, Capri Sun, Ore-Ida, Kool-Aid, Jell-O. Kraft Heniz's sales are highly diversified by food type: Condiments and sauces: 25% of revenue Cheese & dairy: 21% Frozen meals: 10% Meats & seafood: 10% Shelf-stable meals: 9% The [...]
Eaton (ETN)
Founded in 1911, Eaton (ETN) is a large industrial conglomerate with approximately $20 billion in annual sales. The company produces products in over 50 countries and sells them in more than 175 markets around the world. Eaton provides a wide range of energy-efficient products and systems that help customers manage power across electrical, hydraulic, and mechanical applications. The company operates in five main business segments. Electrical Products (35% of sales, 40% of profits): consists of electrical components, industrial components, residential products, single phase power quality, emergency lighting, fire detection, wiring devices, structural support systems, circuit protection, and lighting products. Electrical Systems & Services (28% of sales, 24% of profits): power distribution and assemblies, three phase power quality, hazardous [...]
Home Depot (HD)
Home Depot (HD) began operating in 1978, approximately 32 years after Lowe’s (LOW) was founded. Despite its later start date, Home Depot is now the world’s biggest home improvement retailer with over $100 billion in annual sales. The company has more than 2,200 retail stores and maintains the number one market share position in the U.S., Mexico, and Canada. Home Depot’s stores carry around 35,000 items covering a wide variety of building materials, lawn & garden products, and home improvement products. Its online catalog maintains over 1 million products. Online sales represent a little over 6% of Home Depot’s total revenue (double its nearest traditional competitor) and have grown by approximately $1 billion in each of the last four [...]