Morningstar Advisor - February/March 2010 - 63

Sector Snapshot: Telecom Sector The data shown on this page represent the companies in the telecom sector that are covered by Morningstar analysts (excluding companies in the Internet information providers industry). 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 Sector Structure Moat Breakdown* % Breakdown S&P 500 Key Stats 31878.001953 Industry Map 25840.001465 19802.000977 13764.000488 7726.000000 Aggregates Number of Companies 31878.001953 25840.001465 19802.000977 13764.000488 95 $1,772.6 billion 31878.001953 25840.001465 19802.000977 13764.000488 Wide Moat 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 31878.001953 25840.001465 19802.000977 13764.000488 0.0% 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 31878.001953 25840.001465 19802.000977 13764.000488 42.9% 31878.001953 25840.001465 19802.000977 13764.000488 Narrow Moat 25840.001465 19802.000977 13764.000488 7726.000000 31878.001953 84.6% 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 Total Market Cap 31878.001953 25840.001465 19802.000977 13764.000488 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 44.5% 11.5% 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 6479.800293 5234.600220 Total Fair Value Total Revenue 7726.000000 $1,642.1 billion $1,330.9 billion 7726.000000 7 142 38 9 56 10 11 12 13 15 Market Cap 14 Large 7726.000000 No Moat 7726.000000 15.4% 7726.000000 7726.000000 Medium Stock Type Breakdown % Breakdown S&P 500 Valuation 3989.400146 2744.200073 1499.000000 High Yield Distressed Hard Asset Cyclical Slow Growth Classic Growth Aggressive Growth Speculative Growth Not Classified *Based on Morningstar analyst coverage. 0.5% 1.7% 0.0% 4.4% 7.0% 0.3% 10.7% 0.0% 74.0% 3.7% 1.4% 13.2% 33.6% 12.8% 18.1% 13.6% 3.2% 0.5% Sector 1282.600037 1067.200027 1067.200027 851.800018 636.400009 421.000000 420 336 252 168 84 0 S&P 500 Small Price/Fair Value P/E Price/Book Price/Sales Price/Cash Flow Dividend Yield % Profitability and Financial Health 1.08 13.54 2.44 1.33 7.18 4.23 0.93 14.76 2.08 1.01 6.41 2.71 Undervalued 0 .5 Price/Fair Value 1 Overvalued 1.5 2 0.0 0.0 Sector S&P 500 ROE % ROA % Net Margin % Debt to Capital % 16.17 6.61 9.60 37.19 14.43 5.68 8.40 36.11 0.0 0.0 0.0 Telecom-sector companies are plotted based on their market cap and price/fair value ratio. Companies with a price/fair value ratio of less than one are undervalued. Companies with a ratio of more than one are overvalued. Numbered plots show companies listed in the “Notable Telecom-Sector Companies” chart below. 0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 H R U 0.0 0.0 S 0.0 0.5 1.0 1.5 2.0 Notable Telecom-Sector Companies Name/Ticker Market 3-Yr Total Cap ($mil) Rtrn % Revenue TTM ($mil) 3-Yr Rev/ Morningstar Share Rating Growth % 0.0 0.5 1.0 1.5 2.0 Uncertainty Economic Rating Moat 0.0 0.0 Growth ProfitGrade ability Grade 0.5 0.5 Financial Distress Dividend Free Cash Health Probability Yield % Flow Grade Yield % 1.0 1.5 2.0 1.0 1.5 2.0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 China Mobile Ltd. ADR CHL AT&T, Inc. T Telefonica, S.A. ADR TEF Vodafone Group PLC ADR VOD Verizon Communications Inc. VZ America Movil S.A.B. de C.V. ADR L AMX France Telecom SA ADR FTE Deutsche Telekom AG ADR DT NTT DoCoMo, Inc. ADR DCM Nippon Telegraph and Telephone Corp ADR NTT Nokia Corporation ADR NOK China Telecom Corporation Limited ADR CHA Research in Motion, Ltd. RIMM The DIRECTV Group, Inc. DTV Ericsson Telephone Company ADR ERIC Data as of Jan. 01, 2010 195,119.18 159,149.97 126,909.44 121,989.39 90,559.86 81,944.33 67,380.82 64,528.00 60,426.44 54,730.98 49,395.97 36,549.06 35,843.23 32,198.24 7.71 62992.23 –2.78 123236.00 11.89 76682.46 –3.59 61455.99 0.23 105362.00 6.81 25862.72 4.31 73174.87 –2.09 89673.34 –3.54 43462.13 –5.90 103774.63 –8.09 17639.70 –0.39 27378.13 13.06 14336.71 11.69 20898.00 {{{ {{{ {{{ 11.80 {{{ {{{ {{{ {{{ –2.27 {{{{ –1.02 {{{{ {{{{ {{{ 74.97 {{{ { {{{ High High Narrow X 0.0 X 0.5 Z X X 1.0 4.65 1.40 7.19 1.5 1.5 2.0 37.33 8.37 1.58 11.05 Medium Narrow X Narrow X 0.0 0.0 0.0 C Z B V Z C V 0.5 1.0 2.0 9.28 5.75 10.36 Medium Narrow C Medium Narrow C 0.0 0.5 1.0 1.0 2.20 1.5 1.5 1.5 2.0 2.0 0.5 X 0.5 1.0 2.0 High Narrow X 0.0 0.0 0.5 1.0 5.15 1.5 0.91 6.23 2.0 {{{{{ Medium Narrow C Medium None 0.0 0.5 1.0 6.01 1.5 2.0 11.55 13.11 V 5.18 1.0 1.5 Medium Narrow B High Narrow C 0.5 X V Z V Z X V X Z 2.0 1,085.45 2.17 3.33 5.28 -0.23 5.72 6.08 3.21 9.41 7.95 2,013.71 Medium Narrow X High High High Narrow C Narrow Z None C 4.41 82.37 1.73 5.22 70.22 Medium Narrow X 32,173.59 –19.16 27209.20 MorningstarAdvisor.com 63
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Morningstar Advisor - February/March 2010

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