Morningstar Magazine - August/September 2018 - 69

Sector Snapshot: Utilities
The data on this page represents utilities companies covered by Morningstar analysts.

Industry Structure
Moat Breakdown*

Key Stats
Utilities %

S&P 500 %

1.2

24.2

Wide Moat

Industry Map

Aggregates

Utilities

S&P 500

Number of Companies

83

501

Narrow Moat

60.2

40.7

Total Market Cap $mil

1,440,996

24,897,286

No Moat

38.6

22.0

Total Fair Value $mil

1,399,026

24,897,286

Total Revenue $mil
Stock Type Breakdown

Utilities %

25840.0015
19802.0010

3,456,516

11,425,677

Utilities

S&P 500

13764.0005

S&P 500 %

5234.6003
3989.4002

2.4

Valuation

Distressed

0.0

1.6

Price/Fair Value

Hard Asset

0.0

0.0

P/E

Cyclical

0.0

43.3

Price/Book

1.84

3.24

36.1

19.2

Price/Sales

1.87

2.64

Classic Growth

3.6

8.4

Price/CF

7.91

14.84

Aggressive Growth

1.2

5.4

Dividend Yield %

3.80

2.08

0.0

2.6

54.2

0.0

Utilities

S&P 500

ROE %

9.14

15.33

ROA %

2.79

5.23

Not Classified
*Based on Morningstar analyst coverage.

Medium

7726.0000

6479.8004

4.8

Speculative Growth

Large

31878.0020

High Yield

Slow Growth

Market
Cap

2744.2001

Small

1499.0000
1498.0

1.03
636.4

Profitability & Financial Health

19.24

1282.6

1067.2
851.8

421.0

1.00
22.46

Net Margin %

9.03

9.77

Debt/Capital %

52.90

42.28

Undervalued

Overvalued

0
0.5
Price/Fair Value

1

2

1.5

Utilities 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

Utilities
Market
Cap ($mil)

Revenue
TTM ($mil)

Price/
Sales

Economic
Moat

Morningstar Uncertainty
Rating
Rating

NextEra Energy NEE:IT

80,290.35

17,086.00

4.63

Narrow

QQ

2

Enel ENEL

58,392.79

72,244.00

0.68

None

QQQQ

Medium

3

Duke Energy DUK

57,216.21

23,971.00

2.31

Narrow

QQQQ

Low

4

Iberdrola IBE:ES

51,107.37

32,411.36

1.31

None

QQQ

Medium

5

Southern SO

48,315.19

23,632.00

1.98

Narrow

QQQQ

Low

Name/Ticker
1

Low

0.0

0.0

6

Dominion Energy D

7 Electricite de France EDF:FR

45,711.26

12,668.00

3.51

Wide

QQQQ

Low

43,519.46

69,632.00

0.45

None

QQQ

High

ProfitGrowth ability
Grade Grade

Financial Price/
Health
Fair Dividend
Grade
Value Yield %

C

X

C

V

C

C

C

C

C

C

V

0.5

0.5

C
V

C
1.0

X
X
X

1.0

1.10

Price/
Earnings

2.46

9.64

0.86

3.99

12.52

0.94

4.36

18.70

1.07

4.55

13.81

0.94

4.90

42.10

1.5

2.0

1.5

2.0

C

X

0.83

4.56

15.20

V

-

1.16

3.74

12.02
12.14

8

Exelon EXC

41,598.31

34,165.00

1.20

Narrow

QQ

Medium

C

C

X

1.16

3.12

9

National Grid NG:GB

39,057.12

15,250.00

1.84

None

QQ

Low

C

C

-

1.12

5.24

7.83

10

Engie ENGI:FR

38,169.15

65,029.00

0.49

None

QQQQ

Medium

V

B

-

0.88

5.15

29.18

11

National Grid NGG

38,128.41

15,250.00

1.88

None

QQ

Low

C

C

-

1.09

5.25

7.98

12

American Electric Power AEP

35,244.98

15,539.90

2.20

Narrow

QQQ

Low

C

C

Z

1.05

3.42

19.24
196.80

13

Sempra Energy SRE

31,110.15

11,138.00

2.65

Narrow

QQQ

Low

C

V

C

1.03

2.92

14

Hong Kong and China Gas 00003:HK

29,601.13

32,476.50

7.12

Narrow

QQ

Medium

C

C

-

1.12

2.11

28.10

15

CLP Holdings 00002:HK

28,358.33

92,073.00

2.32

Narrow

QQQ

Medium

C

C

-

1.13

3.33

14.98

Data as of 06/30/2018.

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