Morningstar Advisor - August/September 2009 - 61

Sector Snapshot: Homebuilding The data shown on this page represent publicly traded homebuilding companies in the U.S.—26 in total. Fifty-eight percent of the industry resides in Morningstar’s Distressed Stock Type, and 62% of the industry is classified as by Morningstar as having no economic moat. Sector Structure Moat Breakdown* % Breakdown S&P 500 Key Stats Aggregates Industry Map Undervalued Number of Companies Total Market Cap Total Revenue 6479.800293 5234.600220 3989.400146 2744.200073 1499.000000 26 $20.4 billion $41.5 billion Overvalued Market Cap Large Wide Moat Narrow Moat No Moat Not Classified Stock Type Breakdown 0.0% 34.5% 62.3% 3.1% 47.7% 42.7% 8.6% 1.0% 6479.800293 5234.600220 3989.400146 2744.200073 1499.000000 Valuation 6479.800293 5234.600220 3989.400146 2744.200073 1499.000000 1282.600037 6479.800293 5234.600220 3989.400146 2744.200073 1499.000000 1282.600037 1067.200027 851.800018 636.400009 421.000000 6479.800293 5234.600220 3989.400146 2744.200073 1499.000000 1282.600037 1067.200027 851.800018 636.400009 421.000000 420 336 252 168 84 0 Medium Sector 1282.600037 1067.200027 851.800018 S&P 500 1282.600037 1067.200027 851.800018 636.400009 421.000000 420 336 252 168 84 0 420 336 252 168 84 0 1282.600037 1067.200027 Price/Fair Value 1282.600037 1067.200027 1067.200027 0.80 420 336 252 168 84 0.76 14.10 1.79 0.83 5.76 3.44 % Breakdown S&P 500 851.800018 636.400009 421.000000 High Yield Distressed Hard Asset Cyclical Slow Growth Classic Growth Aggressive Growth Speculative Growth Not Classified *Based on Morningstar analyst coverage. 0.0% 58.0% 0.0% 0.0% 28.5% 0.0% 0.0% 0.0% 13.5% 6.41% 0.8% 14.2% 15.7% 10.3% 27.2% 22.3% 2.9% 0.0% P/E 851.800018 851.800018 636.400009 421.000000 636.400009 421.000000 636.400009 421.000000 420 336 252 168 84 0 107.67 1.13 0.64 0 27 1 3 14 64 5 13 Small 9 12 11 8 1 1.5 2 Price/Book Price/Sales Price/Cash Flow Dividend Yield % 2.67 2.24 10 15 0 .5 Price/Fair Value Profitability and Financial Health Sector S&P 500 0.0 ROE % ROA % Net Margin % Debt to Capital % –28.17 –9.24 –17.06 43.57 18.75 7.28 9.50 37.54 0.0 0.0 0.0 Homebuilding companies are plotted based on their market cap and price/fair value ratio. Companies with a price/fair value ratio of less than one are undervalued. Companies with a ratio more than one are overvalued. Numbered plots show companies listed in the Notable Homebuilding Companies chart below. 0.5 1.0 1.5 2.0 0.5 1.0 1.5 1.5 2.0 0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 0.0 0.0 0.5 1.0 1.5 2.0 0.0 0.0 0.5 0.5 1.0 1.0 1.5 2.0 2.0 Notable Homebuilding Companies Name/Ticker Market Cap ($mil) 3-Yr Total Return % Revenue TTM ($mil) 3-Yr Revenue/ Share Growth% Morningstar Rating Uncertainty Rating Economic Moat 0.0 Growth Grade 0.0 Profitability Grade 0.5 0.5 Financial Distress Health Probability Grade 1.0 1.0 1.5 Dividend Free Cash Yield % Flow Yield % 2.0 2.0 1.5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pulte Homes, Inc. PHM D.R. Horton Incorporated DHI Lennar Corporation LEN Centex Corporation CTX NVR, Inc. NVR KB Home KBH Toll Brothers, Inc. TOL Hovnanian Enterprises Inc. HOV Ryland Group, Inc. RYL Beazer Homes USA, Inc. BZH Standard Pacific Corp. SPF Meritage Homes Corporation MTH M.D.C. Holdings, Inc. MDC Champion Enterprises, Inc. CHB Data as of 7/6/09 2,151.31 2,779.35 1,439.07 999.60 2,824.73 1,069.21 2,606.46 167.54 696.43 67.11 215.93 525.75 1,329.28 23.32 –33.03 –25.00 –37.89 –45.16 0.50 –31.82 –14.41 –58.01 –25.84 –63.33 –54.80 –28.68 –4.02 –15.39 –69.49 5,428.06 4,942.60 4,105.57 3,826.53 3,380.64 2,547.07 2,305.24 2,209.75 1,825.20 1,588.91 1,406.30 1,380.78 1,361.19 1,238.26 841.72 –24.64 –21.74 –33.03 –10.48 –28.08 –18.31 –25.70 –25.19 –26.55 –20.23 28.51 –33.15 {{{{ {{{{ {{{ {{{{ {{{ {{{{ {{{{ {{{ {{{{ {{{ {{{ {{{{ {{ {{{{ Very High Very High Extreme Very High Medium Very High High Extreme High Extreme Extreme High High High None None None None Narrow None Narrow None None None None None Narrow None 0.0 V V 0.0 B V B B V B V B V B B V C V V 0.5 C C C X C C V C V V C C V 1.0 0.72 n/a 0.14 0.29 2.98 0.56 1.42 –0.54 0.90 –0.75 0.05 0.24 n/a 1.60 –1.43 1.5 0.00 1.71 1.78 0.00 0.00 2.06 0.00 0.00 0.74 0.00 0.00 0.00 0.00 3.52 0.00 2.0 55.85 67.40 137.70 16.12 31.41 272.66 34.25 454.45 36.16 0.0 0.5 0.5 1.0 1.0 1.5 1.5 2.0 2.0 V 0.0 0.5 1.0 1.5 2.0 V 0.0 0.5 1.0 1.5 2.0 C 0.0 0.5 1.0 1.5 2.0 V V V V V V V Z V V Homex Development Corp. ADR HXM 1,604.03 –236.60 36.03 –120.98 MorningstarAdvisor.com 61
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Morningstar Advisor - August/September 2009

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