Morningstar Advisor - August/September 2010 - 63

Sector Snapshot: Basic Materials
The data shown on this page represents basic-materials companies covered by Morningstar analysts, including companies in the steel, aluminum, cement, coal, gold, silver, copper, and industrial metals and mining industries.

Sector Structure
Moat Breakdown* % Breakdown S&P 500

Key Stats
Aggregates

Industry Map
60
4 3 Market Cap Large

Number of Companies Total Market Cap Total Fair Value Total Revenue
Valuation
6479.800293 5234.600220 3989.400146 2744.200073 1499.000000

31878.001953 25840.001465 19802.000977 13764.000488 7726.000000

2 1 5

Wide Moat Narrow Moat No Moat
Stock Type Breakdown

0.00% 69.60% 30.40%

42.30% 44.90% 11.70%

$952.8 billion
31878.001953 25840.001465 19802.000977 13764.000488 7726.000000

$851.1 billion
31878.001953 25840.001465 19802.000977 13764.000488 7726.000000

$457.7 billion

6 7 10 9 13 1112 8 15 14

Medium

% Breakdown

S&P 500

High Yield Distressed Hard Asset Cyclical Slow Growth Classic Growth Aggressive Growth Speculative Growth Not Classified
*Based on Morningstar analyst coverage.

0.00% 1.30% 6.10% 9.90% 0.00% 0.00% 0.00% 0.00% 82.60%

1.90% 2.10% 12.10% 33.30% 16.50% 15.50% 15.60% 2.40% 0.40%

Sector

S&P 500
1282.600037 1067.200027 851.800018 636.400009 421.000000

Price/Fair Value P/E Price/Book Price/Sales Price/Cash Flow Dividend Yield %

1067.200027

1.12 19.80 2.60 4.30 199.95 1.53

0.84 12.81
420 336 252 168 84

Small

636.400009

1.84 1.15
0

Undervalued 0 .5 Price/Fair Value 1

Overvalued 1.5 2

4.89 2.62

Profitability and Financial Health Sector S&P 500

0.0

0.0 0.0

ROE % ROA % Net Margin % Debt to Capital %

12.52 5.79 11.96 26.04

20.27 7.98 11.97 36.57

Basic materials-sector 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 “Basic Materials-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 0.0 0.5 1.0 1.5 2.0 0.0 0.5 1.0 1.5 2.0

H

R U

S
Growth Grade Profitability Grade Financial Price/Fair Health Value Grade Dividend Yield % Free Cash Flow Yield %

Basic Materials-Sector Companies
Name/Ticker Market 3-Yr Total Cap ($mil) Rtrn % Revenue TTM ($mil) 3-Yr Rev/ Morningstar Share Rating Growth % Uncertainty Rating Economic Moat

1 2 3 4 5 6 7 8

BHP Billiton Limited ADR BHP Vale S.A. ADR VALE Rio Tinto PLC ADR RTP ArcelorMittal MT Barrick Gold Corporation ABX Posco ADR PKX Goldcorp, Inc. GG Newmont Mining Corporation NEM

187,862.45 132,663.83 60,061.24 47,295.71 42,462.30 32,045.68 30,713.72 29,819.67 27,741.38 26,395.34 25,678.50 23,712.64 22,884.71 19,710.21 15,142.90

1.75 45,007.00 1.14 24,591.00 –9.45 41,825.00 –20.99 68,640.00 11.31 16.70 15.02 8,922.00 2,849.10 8,411.00 –11.44 32,060.13

NA QQQ 5.86 QQQ 3.42 QQQQ 13.01 QQQ 12.56 QQQ 16.78 QQQ

Medium High High High High High High High

Narrow X Narrow X Narrow X Narrow C None
0.0

C V V V V V V X C V C X V V B
0.5 0.5

NA NA NA
C

0.93 0.82 0.64 0.57 0.86
1.0

2.50 1.77 1.89 2.10 0.93
1.5 2.0

4.33 –0.72

NA QQQQQ Medium

6.37
9.49 –11.01 –0.28 3.95 10.13
2.0

X

NA NA
X X

Narrow C None None
0.0

0.87 1.16 1.23 0.78

NA 6,947.43 0.43 0.65 1.87

C X

16.43 QQQ
37.46 QQQ 0.04 QQQQ –11.90 QQQ 9.24 QQQ 1.79 QQQ 1.62 QQQ 13.35 QQQ

9 Freeport-McMoRan Copper & Gold B FCX 10 CEMEX SAB de CV ADR CX 11 12 13

–11.02 16,801.00 –32.18 15,965.04 –2.04 21.76 –7.48 –0.96 4,331.69 5,754.65 7,353.75 3,954.00

Very High Narrow X Narrow V Very High Narrow C Very High Narrow X Very High None High None
C

NA NA
X
1.0

0.66 1.04 1.06 0.92 0.97 0.80

1.5

NA 5.96 7.42 2.17 1.57 0.46

106.44 2.14 –3.75 11.37 25.23 –3.80

Southern Copper Corporation SCCO Companhia Siderurgica Nacional ADR SID Tenaris SA ADR TS

NA
X C

14 Gerdau SA ADR GGB 15 AngloGold Ashanti Limited ADR AU Data as of July 13, 2010

2.10 15,305.10

Very High Narrow X C

NA

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