Morningstar Advisor - December/January 2012 - (Page 31)

Sector Snapshot: Basic Materials The data on this page represents basic-materials companies covered by Morningstar analysts, including firms in the gold, copper, silver, steel, aluminum, building materials, coal, agricultural inputs, chemicals, paper and paper products, and lumber and wood production industries. Sector Structure Moat Breakdown* % Breakdown S&P 500 Key Stats Aggregates Industry Map 1 4 6311 9 12 8 7 2 10 5 Number of Companies Total Market Cap Total Fair Value Total Revenue 6479.800293 5234.600220 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 128 $2,928.0 billion $3,491.4 billion NA 14 13 15 Market Cap Large Wide Moat Narrow Moat No Moat Stock Type Breakdown 4.69% 29.69% 65.63% 20.17% 55.84% 23.99% Medium Valuation % Breakdown S&P 500 3989.400146 2744.200073 1499.000000 1,472.73 1282.600037 High Yield Distressed Hard Asset Cyclical Slow Growth Classic Growth Aggressive Growth Speculative Growth Not Classified *Based on Morningstar analyst coverage. 0.79% 2.36% 0.00% 37.01% 0.00% 0.00% 0.00% 0.00% 59.84% 3.80% 1.40% 0.00% 47.60% 18.00% 2.80% 15.60% 1.80% 9.00% 1067.200027 Sector S&P 500 Small Price/Fair Value P/E Price/Sales Dividend Yield % 636.400009 0.84 13.62 1.17 1.71 851.800018 421.000000 0.88 15.90 336 252 168 84 0 420 1.51 2.32 Undervalued 0 0.5 Price/Fair Value 1 Overvalued 1.5 2 Profitability and Financial Health Sector S&P 500 ROE % ROA % Net Margin % 12.71 6.25 — 15.37 6.11 — 0.0 0.0 Basic-materials companies are plotted based on their market cap and price/fair value ratio. Companies with a price/fair value ratio of less than 1 are undervalued. Companies with a ratio of more than 1 are overvalued. Numbered plots show companies listed in the table below. 0.5 0.5 1.0 1.0 1.5 2.0 1.5 2.0 H R U S Basic Materials Companies Name/Ticker Market Cap ($mil) Revenue TTM ($mil) Price/ Sales Economic Moat Morningstar Rating Uncertainty Rating Growth Grade Profitability Grade Financial Health Grade Price/Fair Value Dividend Yield % Price/ Earnings 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 BHP Billiton PLC ADR BBL AngloGold Ashanti Limited ANG Vale S.A. ADR VALE Rio Tinto PLC ADR RIO Gold Fields Ltd GFI Basf SE ADR BASFY Barrick Gold Corporation ABX Anglo American PLC ADR AAUKY E.I. du Pont de Nemours & Company DD Goldcorp, Inc. G Potash Corporation of Saskatchewan, Inc. POT Monsanto Company MON Freeport-McMoRan Copper & Gold B FCX The Dow Chemical Co DOW Newmont Mining Corporation NEM Data as of Aug. 31, 2011 163,217.19 138,231.76 128,421.85 102,089.06 99,515.08 63,742.42 49,309.91 47,099.46 43,313.32 40,445.81 39,821.79 38,073.14 36,739.85 32,294.52 32,041.50 71,739.00 6,016.00 57,233.00 61,088.00 4,446.00 71,853.00 12,238.00 17,857.83 37,693.00 5,228.80 7,916.60 11,502.00 22,278.00 57,418.00 10,141.00 2.43 2.94 1.43 1.74 2.89 0.67 4.02 1.68 1.20 7.34 5.36 3.44 1.72 0.56 3.31 Narrow None Narrow Narrow None None None None None None Wide Wide Narrow None None QQQQQ Medium QQQ QQQ QQQ QQQQ QQQ QQQ QQQ QQ QQQ QQQ QQQ QQQQ QQQ Very High Very High Very High High High Very High High High High Medium Very High High High C C X X C 0.0 0.0 C B C V C 0.5 0.5 — C C — — 1.0 1.0 0.61 1.17 0.79 0.62 1.23 1.5 1.5 3.60 0.50 2.33 2.06 1.45 2.0 2.0 7.37 21.79 3.25 6.61 — 7.84 13.30 6.87 13.04 21.32 17.27 25.38 6.86 11.14 14.18 QQQQQ Medium C X — C C C X C C X C V C C C C C C V X — X — X X X Z C V X 0.76 0.97 0.85 0.90 1.16 0.85 0.98 0.99 0.76 1.04 3.30 1.22 1.35 3.50 0.84 0.62 1.69 2.58 3.66 2.13 MorningstarAdvisor.com 31 http://www.MorningstarAdvisor.com

Table of Contents for the Digital Edition of Morningstar Advisor - December/January 2012

Morningstar Advisor - December/January 2012
Contents
Contributors
Letter From the Editor
Seduced by Complexity
Is China Exposure Important for a Portfolio?
A Niche Built on Trust
How to Find Your Client’s Investment Style
Taking the Long View
Consensus on Europe Elusive
Four Picks for the Present
Investment Briefs
Is Perception Reality for Active Managers?
Be Alert for Basic-Materials Bargains
Investment Boom Unsustainable
Digging Moats in China
Where China’s Domestic Companies Stand to Benefit
Arising Opportunities
China Strong Long Term
From Currency Manipulation to International Acceptance
The Keys to China’s Fortune
Wedgewood’s Lessons Pay Off
Reading the Evidence on Indexing
Scouting for Investments Abroad
Yield, Please (Hold the Europe)
Mutual Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
China Fund Managers Eat Elsewhere

Morningstar Advisor - December/January 2012