Morningstar Advisor - October/November 2010 - 64

Sector Snapshot: Retail
The data shown on this page represents retail companies covered by Morningstar analysts, including companies in the clothing and footwear apparel manufacturing industries, sporting goods stores, specialty retailers, jewelry stores, home improvement stores, home furnishing stores, electronics stores, discount stores, department stores, and apparel stores.
Sector Structure
Moat Breakdown* % Breakdown S&P 500

Key Stats
Aggregates

Industry Map
71
1 Market Cap Large

Number of Companies Total Market Cap Total Fair Value Total Revenue
6479.800293

31878.001953 25840.001465

2

Wide Moat Narrow Moat No Moat
Stock Type Breakdown

50.26% 22.77% 26.97%

42.60% 45.00% 11.60%

$648.7 billion
19802.000977 13764.000488 7726.000000 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000

$779.0 billion
31878.001953 25840.001465 19802.000977 13764.000488 7726.000000

6

$1,113.9 billion

3 5 4 7 9 11 10 1214 8 13 15

Medium

Valuation % Breakdown S&P 500

5234.600220 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.

0.00% 0.42% 0.00% 38.45% 20.66% 0.87% 37.41% 0.00% 2.18%

1.82% 1.10% 11.43% 32.98% 17.25% 17.52% 15.14% 1.68% 1.08%

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

0.82 16.58 2.94 1.01 8.85 1.68

0.80 15.21
420 336 252 168

Small

636.400009

2.02 1.19
84 0

Undervalued 0 .5 Price/Fair Value 1

Overvalued 1.5 2

8.06 2.46

Profitability and Financial Health Sector S&P 500

0.0

ROE % ROA % Net Margin % Debt to Capital %

19.90 9.27 6.15 26.94

20.25 8.01 12.05 36.68

Retail-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 “Retail-Sector Companies” chart below.
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 0.0 0.5 1.0 1.5 2.0

H

R U

S
Profitability Grade Financial Health Grade Steward- Price/Fair ship Value Grade Dividend Yield % Free Cash Flow Yield %

Retail-Sector Companies
Name/Ticker Market Cap ($mil) Revenue TTM ($mil) Price/ Sales Economic Moat Morningstar Rating Uncertainty Rating Growth Grade

1 2 3 4 5 6 7 8 9

Wal-Mart Stores, Inc. WMT Home Depot, Inc. HD Target Corporation TGT Nike, Inc. B NKE eBay, Inc. EBAY Lowe's Companies Inc. LOW Costco Wholesale Corporation COST TJX Companies TJX Kohl's Corporation KSS Staples, Inc. SPLS Gap, Inc. GPS

186,001.78 46,747.44 36,909.27 33,811.36 30,481.35 28,984.17 24,810.97 15,902.24 14,453.73 13,087.43 12,974.09 10,988.52 10,710.71 10,659.03 9,491.97

408,214.00 66,176.00 65,357.00 19,014.00 8,727.36 47,220.00 71,422.00 20,288.44 17,178.00 49,694.00 24,275.45 14,197.00 7,309.03 3,607.64 7,828.79

0.46 0.71 0.56 1.78 3.49 0.61 0.35 0.78 0.84 0.26 0.53 0.77 1.47 2.95 1.21

Wide Wide Narrow Wide Wide Wide Narrow Narrow None None None Narrow Narrow None

QQQQ QQQ QQQ QQQQ

Low Medium Medium Medium Medium Medium Medium High Medium Medium High Medium

C C C C X C C C C X X C C X C

C C C C X V
0.0

Z X Z Z Z X Z Z X C X X
0.5 0.5 0.5

X X Z X Z Z Z Z C X X X C X C
1.0 1.0 1.0

0.85 0.68 0.90 0.94 0.86 0.59 0.92 1.08 0.86 0.68 0.68 0.86 1.00 0.94 0.79
1.5 1.5 1.5

2.35 3.36 1.49 1.51 NA 1.87 1.36 1.36 NA 1.78 1.94 2.19 2.39 1.05 NA
2.0 2.0 2.0

7.56 8.90

QQQQQ Medium

11.25
8.37 7.68 7.78 3.39 11.59 10.85 12.16 13.65 14.51 6.58 8.54 7.92

QQQQQ Medium QQQ QQQQ QQQQ

C Z C
0.0 0.0

Narrow QQQ

10 Best Buy Co., Inc. BBY 11 12

C C X C Z

QQQQQ Medium QQQ QQQ QQQ QQQQ

13 Luxottica Group S.p.A. ADR LUX 14 Coach, Inc. COH 15

NA
Z Z

Bed Bath & Beyond, Inc. BBBY
Data as of Aug. 31, 2010

C

64 Morningstar Advisor October/November 2010
Morningstar Advisor - October/November 2010

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