International Sales Analysis: 2 of 3

In part one of this three part series on international sales, we talked about why we believe international revenues diversificaiton is important to our Quantigence DGI Portfolio and also identified 6 companies in our portfolio with zero international sales. This leaves us with 24 companies that all have varying degrees of international sales. We’ll take 12 of these companies and look in their latest 10-K filings to determine what percentage of their income or revenues are obtained internationally.

Chevron (CVX)
While earnings were available, we used 2015 revenues because Chevron is incurring losses and this is an easier way to measure. International sales came in at 56%. The percentage of international sales has been trending upwards over the past several years.

Exxon (XOM)
While earnings were available, we used 2015 revenues because Exxon is incurring losses and this is an easier way to measure. International sales came in at 64%. The percentage of international sales has been trending upwards over the past several years.

3M (MMM)
In 2015, MMM had international sales at 60% of total revenues. The year prior it was slightly higher at 63%.

Dover (DOV)
DOV provides the breakdown of their earning between foreign and domestic sources with 34% of their income coming from countries other than the U.S. In 2014 this number was 27% and in 2013 it was 31%.

Parker Hannifin (PH)
PH had international income of 36% in 2016. The previous year’s international income was 38% and in 2014 it was roughly the same.  

Coca-Cola (KO)
KO breaks down their revenues by region so we see North America at 49% of revenues and the rest of the world at 51% of revenues. This number has remained about the same over the past 3 years.

Walmart (WMT)
This information was not readily available in WMT’s latest 10-K so we pulled the international sales number from Statista which came in at 26%. This number has fallen slightly over the past few years.

Walgreen Boots Alliance (WBA)
WBA has three reporting segments; Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale which operates primarily in Europe. This gives us an international sales exposure of around 23%.

Proctor & Gamble (PG)
PG reports their U.S. revenues at 41% of total revenues which gives us international sales of 59%. While PG’s overall reveneus have been declining over the past 5 years their U.S. revenues have been slowly ticking upwards over the past 3 years.  

Archer Daniel Midlands (ADM)
In their latest 10-K, ADM provides their geographic split of earnings before income taxes which is at 50% for international earnings. Just three years ago, international earnings were only 25% so it seems like ADM is focused on diversifying their revenues. 

McDonalds (MCD)
It should come as no surprise that MCD has a very high percentage of international sales which for 2015 were at 66%. These percentage havenn’t changed much over the past 3 years and domestic sales appear to be trending down slightly.

VF Corporation (VFC)
VFC’s broad portfolio of apparel must have quite a bit of international appeal as 53% of their income in 2015 came from international sources. There was a very strange dip in domestic income in 2014 but in 2013 it was about the same distribution as we see it now.  

The average international exposure for these 12 companies sits at around 48%. This means that problems in the U.S. will have a muted impact on the growth of our income streams. In part 3 of this series on international sales for companies in the Quantigence DGI Portfolio, we’ll look at the remaining 12 companies.

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