Morningstar Magazine - June/July 2017 - 101

Sector Snapshot: Basic Materials
The data on this page represents basic materials companies covered by Morningstar analysts.

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Industry Structure
Moat Breakdown*

Key Stats
Basic Materials %

S&P 500 %

1.9

23.8

Wide Moat

Industry Map

Aggregates

Basic Materials

S&P 500

Number of Companies

155

505

Narrow Moat

27.7

41.6

Total Market Cap $mil

2,070,060

22,556,695

No Moat

70.3

20.6

Total Fair Value $mil

1,782,340

21,698,260

Total Revenue $mil
Stock Type Breakdown

Basic Materials %

62,883,518

25840.0015
19802.0010

10,832,823
13764.0005

S&P 500 %

5234.6003
3989.4002

2.4

Valuation

Distressed

2.6

6.1

Price/Fair Value

Hard Asset

0.0

0.0

P/E

26.5

42.2

Price/Book

1.82

3.33

Slow Growth

0.0

17.8

Price/Sales

1.60

2.55

Classic Growth

0.0

10.3

Price/CF

9.44

14.18

Aggressive Growth

0.0

6.3

Dividend Yield %

2.06

2.01

Basic Materials

S&P 500

ROE %

8.81

14.51

ROA %

4.18

5.13

Not Classified
*Based on Morningstar analyst coverage.

0.0

1.4

71.0

0.0

Medium

7726.0000

6479.8004

0.0

Speculative Growth

Large

31878.0020

High Yield

Cyclical

Market
Cap

Basic Materials

S&P 500

2744.2001

Small

1499.0000
1498.0

1.16
636.4

Profitability & Financial Health

20.34

1282.6

1067.2
851.8

1.04
20.77

421.0

Net Margin %

6.79

10.03

Debt/Capital %

31.90

43.07

Undervalued

Overvalued

0
0.5
Price/Fair Value

1

2

1.5

Basic materials firms 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.

0.0

0.5

1.0

2.0

1.5

Basic Materials
ProfitGrowth ability
Grade Grade

Financial Price/
Health
Fair Dividend
Grade
Value Yield %

V

V

-

High

C

X

High

0.5

V

V

QQ

High

V

V

Q

Very High

V

B

Market
Cap ($mil)

Revenue
TTM ($mil)

Price/
Sales

Economic
Moat

Morningstar Uncertainty
Rating
Rating

1 BASF BASFY

89,655.06

60,199.00

1.37

Narrow

QQ

High

2 Dow Chemical DOW

76,380.86

50,685.00

1.42

None

QQ

3 E.I. du Pont de Nemours DD

69,310.54

25,574.00

2.74

Narrow

QQ

4 BHP Billiton BHP

57,451.77

33,996.00

2.77

None

5 Glencore GLEN:GB

55,413.76

152,948.00

0.36

None

Name/Ticker

0.0

0.0

0.5

6 China Shenhua Energy 601088:CN

55,333.87

204,787.00

1.95

Narrow

QQ

High

7 Rio Tinto RIO

54,506.34

33,781.00

2.11

None

QQ

High

8 Monsanto MON

51,296.61

14,475.00

3.58

Wide

QQQ

Medium

C

9 Air Liquide AIL:FR

47,336.92

18,134.80

2.24

Narrow

QQ

Medium

C

10 Vale VALE

43,793.71

30,668.00

1.48

None

Q

Very High

V

V
V

X
1.0

X
-
-

1.0

Price/
Earnings

1.15

3.24

1.23

2.94

15.29

1.23

1.90

29.28

1.22

3.05

38.04

2.98

-

29.79

1.5

2.0

1.5

18.81

2.0

V

C

1.29

1.62

13.16

X

-

1.19

4.41

11.93

C

Z

0.92

1.85

26.87

C

-

1.11

2.04

22.03

B

C

2.21

3.27

9.69

11 Syngenta SYT

42,913.75

12,790.00

3.35

Narrow

QQQ

High

C

V

-

1.01

2.38

36.16

12 Johnson Controls International JCI

38,893.63

40,064.00

0.77

Narrow

QQQQ

High

C

V

C

0.77

2.60

-25.28

13 Ecolab ECL

36,332.58

13,152.80

2.83

Narrow

QQ

Medium

C

C

Z

1.20

1.15

30.26

14 Praxair PX

35,831.89

10,753.00

3.36

Wide

QQQ

Medium

C

Z

X

1.06

2.42

23.60

15 LafargeHolcim LHN:CH

34,983.84

26,904.00

1.29

Narrow

QQQ

High

V

V

C

0.96

2.61

19.39

Data as of 04/30/2017.

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