Morningstar Advisor - October/November 2009 - 63

Sector Snapshot: Consumer-Staples The data shown on this page represent publicly traded consumer-staples companies in the U.S. that are covered by Morningstar analysts. These include mainly companies in the food, beverage, and tobacco industries. Sector Structure Moat Breakdown* % Breakdown S&P 500 Key Stats Aggregates Industry Map Number of Companies Total Market Cap 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 122 $2,067.0 billion 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 6479.800293 5234.600220 3989.400146 2744.200073 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 Wide Moat 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 54.3% 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 45.0% 31878.001953 25840.001465 19802.000977 13764.000488 1 3 15 14 5 12 13 9 11 2 10 Market Cap Large Narrow Moat 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 36.6% 0.0% 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 44.2% 10.2% 0.7% Total Revenue 25840.001465 19802.000977 13764.000488 7726.000000 31878.001953 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 $2,559.9 billion 25840.001465 19802.000977 13764.000488 7726.000000 31878.001953 No Moat 9.1% 7726.000000 Not Classified Stock Type Breakdown Valuation Medium Sector S&P 500 1282.600037 1067.200027 Price/Fair Value % Breakdown S&P 500 1499.000000 0.80 10.07 4.49 0.80 8.03 1.62 — 15.44 2.02 420 336 252 168 Small High Yield Distressed Hard Asset Cyclical Slow Growth Classic Growth Aggressive Growth Speculative Growth Not Classified *Based on Morningstar analyst coverage. 0.6% 0.0% 0.0% 1.8% 9.2% 34.8% 10.7% 4.9% 37.9% 1.2% 1.2% 12.6% 17.7% 16.9% 23.2% 22.6% 3.6% 1.1% P/E Price/Book Price/Sales Price/Cash Flow Dividend Yield % Profitability and Financial Health 851.800018 636.400009 421.000000 0.92 84 0 Undervalued 0 .5 Price/Fair Value 1 Overvalued 1.5 2 5.62 3.18 Sector S&P 500 0.0 0.0 ROE % ROA % Net Margin % Debt to Capital % 29.81 10.13 10.36 39.31 16.09 6.30 8.69 37.05 0.0 0.0 Consumer-staples companies are plotted based on their market cap and price/fair value ratio. Companies with a price/fair value ratio of less than one are undervalued. Companies with a ratio more than one are overvalued. Numbered plots show companies listed in the “Notable Consumer-Staples Companies” chart below. 0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 H R U 0.0 0.0 0.5 1.0 1.5 2.0 S 0.0 0.5 1.0 1.5 2.0 Notable Consumer-Staples Companies 0.0 0.5 1.0 1.5 2.0 Name/Ticker Market 3-Yr Total Cap ($mil) Rtrn % Revenue TTM ($mil) 3-Yr Rev/ Morningstar Share Rating Growth % Uncertainty Rating Economic Moat 0.0 0.0 Growth ProfitGrade ability Grade 0.5 0.5 Financial Health Grade 1.0 Distress Probability 1.5 Dividend Yield % 2.0 1.0 1.5 2.0 Free Cash Flow Yield % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Wal-Mart Stores, Inc. WMT McKesson, Inc. MCK Nestle SA ADR NSRGY Cardinal Health, Inc. CAH CVS Caremark Corporation CVS Procter & Gamble Company PG Tesco PLC TSCDY Kroger Company KR Costco Wholesale Corporation COST AmerisourceBergen Corporation ABC 201,611.00 14,768.11 147,516.78 52,865.59 154,321.72 47,714.20 14,149.49 23,914.05 6,284.02 6.28 404,909.00 4.48 106,585.00 8.20 103,263.02 99,512.40 93,270.60 79,029.00 77,435.22 75,655.00 72,144.02 70,201.77 69,207.00 64,574.00 62,229.00 61,082.00 56,328.89 4.49 –1.80 — –1.78 4.12 0.44 –9.82 0.12 — 8.34 9.50 {{{{ 7.02 {{{ Low Medium Low Medium Medium Wide Narrow Narrow Narrow Narrow Wide Narrow None Narrow Narrow 0.0 0.0 0.0 C C B C C C C X X C V C X C C C V C 0.5 0.5 Z X 1.0 0.00 0.00 — 0.00 1.0 1.5 2.04 0.87 1.90 2.17 0.81 2.0 2.0 2.0 5.78 7.81 6.45— {{{ 7.70 — 33.21 {{{ 0.0 0.5 — X Z Z 1.0 1.5 2.0 4.— 11.15 3.34 9,269.04 –18.85 0.00 0.00 — 0.00 0.00 0.00 0.01 0.01 0.00 1.5 5.02 {{{{{ Low 11.25 — — {{{ 9.00 {{{{ 23.66 {{{ 7.27 {{{ — {{{ — {{{ 1.81 {{{ Medium Medium Medium 0.5 1.0 1.5 3.18 7.57— 3.06 1.66 1.24 0.99 2.0 0.0 — C C X X C C — 0.5 — X Z Z X X Z 1.0 1.5 — 5.28 2.42 9.54 7.8— {{{{{ Medium 0.0 0.5 1.0 1.5 2.0 0.0 0.5 1.0 1.5 2.0 0.0 0.5 1.0 1.5 2.0 Archer Daniels Midland Corporation ADM 17,989.95 Target Corporation TGT Walgreen Company WAG Philip Morris International Inc PM Unilever PLC ADR UL Data as of Sept. 4, 2009 Very High None Medium Medium Medium Medium Narrow Narrow Wide Narrow 1.96 19.14— 1.38 1.42 4.71 3.52 2.50 2.44 7.71 2.49 35,390.01 88,636.89 109,702.15 33,294.35 –10.82 — — X — Z 0.00 0.00 MorningstarAdvisor.com 63
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Morningstar Advisor - October/November 2009

Table of Contents for the Digital Edition of Morningstar Advisor - October/November 2009

Morningstar Advisor - October/November 2009
Contents
New on MorningstarAdvisor.com
Letter from the Editor
Contributors
How Do You Use Behavioral Finance in Your Practice?
Investing in the Moment
Investment Briefs
How the Best Large-Cap Managers Rise Above the Rest
Don’t Give Up on Stocks Just Yet
Makeup of the Mind
A Top-Down Approach
In Practice: Patterns of Investor Irrationality
A Call for Nudges
The Furious Comeback of Emerging Markets
Junk-Bond Pioneer
Four Picks for the Present
Consumer Staples Hold Up in the Kitchen
Familiarity Can Breed Bad Investment Decisions
Leave the ‘Junk Rally’ Behind and Look for Quality at a Reasonable Price
Mutual Fund Analyst Picks
50 Most Popular Equity ETFs
Undervalued Stocks
New at Morningstar
Meet the New Boss, Same (School) as the Old Boss
Morningstar Advisor - October/November 2009 - Morningstar Advisor - October/November 2009
Morningstar Advisor - October/November 2009 - Cover2
Morningstar Advisor - October/November 2009 - 1
Morningstar Advisor - October/November 2009 - 2
Morningstar Advisor - October/November 2009 - Contents
Morningstar Advisor - October/November 2009 - 4
Morningstar Advisor - October/November 2009 - 5
Morningstar Advisor - October/November 2009 - New on MorningstarAdvisor.com
Morningstar Advisor - October/November 2009 - 7
Morningstar Advisor - October/November 2009 - 8
Morningstar Advisor - October/November 2009 - Letter from the Editor
Morningstar Advisor - October/November 2009 - Contributors
Morningstar Advisor - October/November 2009 - 11
Morningstar Advisor - October/November 2009 - How Do You Use Behavioral Finance in Your Practice?
Morningstar Advisor - October/November 2009 - 13
Morningstar Advisor - October/November 2009 - 14
Morningstar Advisor - October/November 2009 - Investing in the Moment
Morningstar Advisor - October/November 2009 - 16
Morningstar Advisor - October/November 2009 - 17
Morningstar Advisor - October/November 2009 - 18
Morningstar Advisor - October/November 2009 - Investment Briefs
Morningstar Advisor - October/November 2009 - 20
Morningstar Advisor - October/November 2009 - 21
Morningstar Advisor - October/November 2009 - How the Best Large-Cap Managers Rise Above the Rest
Morningstar Advisor - October/November 2009 - 23
Morningstar Advisor - October/November 2009 - 24
Morningstar Advisor - October/November 2009 - 25
Morningstar Advisor - October/November 2009 - 26
Morningstar Advisor - October/November 2009 - Don’t Give Up on Stocks Just Yet
Morningstar Advisor - October/November 2009 - 28
Morningstar Advisor - October/November 2009 - 29
Morningstar Advisor - October/November 2009 - Makeup of the Mind
Morningstar Advisor - October/November 2009 - 31
Morningstar Advisor - October/November 2009 - A Top-Down Approach
Morningstar Advisor - October/November 2009 - 33
Morningstar Advisor - October/November 2009 - 34
Morningstar Advisor - October/November 2009 - 35
Morningstar Advisor - October/November 2009 - 36
Morningstar Advisor - October/November 2009 - 37
Morningstar Advisor - October/November 2009 - 38
Morningstar Advisor - October/November 2009 - 39
Morningstar Advisor - October/November 2009 - In Practice: Patterns of Investor Irrationality
Morningstar Advisor - October/November 2009 - 41
Morningstar Advisor - October/November 2009 - 42
Morningstar Advisor - October/November 2009 - A Call for Nudges
Morningstar Advisor - October/November 2009 - 44
Morningstar Advisor - October/November 2009 - 45
Morningstar Advisor - October/November 2009 - 46
Morningstar Advisor - October/November 2009 - 47
Morningstar Advisor - October/November 2009 - The Furious Comeback of Emerging Markets
Morningstar Advisor - October/November 2009 - 49
Morningstar Advisor - October/November 2009 - 50
Morningstar Advisor - October/November 2009 - 51
Morningstar Advisor - October/November 2009 - 52
Morningstar Advisor - October/November 2009 - 53
Morningstar Advisor - October/November 2009 - 54
Morningstar Advisor - October/November 2009 - Junk-Bond Pioneer
Morningstar Advisor - October/November 2009 - 56
Morningstar Advisor - October/November 2009 - 57
Morningstar Advisor - October/November 2009 - Four Picks for the Present
Morningstar Advisor - October/November 2009 - 59
Morningstar Advisor - October/November 2009 - 60
Morningstar Advisor - October/November 2009 - Consumer Staples Hold Up in the Kitchen
Morningstar Advisor - October/November 2009 - 62
Morningstar Advisor - October/November 2009 - 63
Morningstar Advisor - October/November 2009 - Familiarity Can Breed Bad Investment Decisions
Morningstar Advisor - October/November 2009 - 65
Morningstar Advisor - October/November 2009 - Leave the ‘Junk Rally’ Behind and Look for Quality at a Reasonable Price
Morningstar Advisor - October/November 2009 - 67
Morningstar Advisor - October/November 2009 - Mutual Fund Analyst Picks
Morningstar Advisor - October/November 2009 - 69
Morningstar Advisor - October/November 2009 - 70
Morningstar Advisor - October/November 2009 - 71
Morningstar Advisor - October/November 2009 - 50 Most Popular Equity ETFs
Morningstar Advisor - October/November 2009 - 73
Morningstar Advisor - October/November 2009 - Undervalued Stocks
Morningstar Advisor - October/November 2009 - 75
Morningstar Advisor - October/November 2009 - 76
Morningstar Advisor - October/November 2009 - 77
Morningstar Advisor - October/November 2009 - 78
Morningstar Advisor - October/November 2009 - New at Morningstar
Morningstar Advisor - October/November 2009 - Meet the New Boss, Same (School) as the Old Boss
Morningstar Advisor - October/November 2009 - Cover3
Morningstar Advisor - October/November 2009 - Cover4
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