Morningstar Advisor - December/January 2010 - 61

Sector Snapshot: Electric Utilities The data shown on this page represent the companies in the Electric Utilities industry that are covered by Morningstar analysts. As shown in the chart, many reside deep in the value portion of the Morningstar Style Box. Sector Structure Moat Breakdown* % Breakdown S&P 500 Key Stats Aggregates Industry Map31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 6479.800293 5234.600220 Number of Companies 31878.001953 25840.001465 19802.000977 13764.000488 Market Cap Large 2 4 83 6 1015 7 9 1311 12 5 14 1 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 44.7% 31878.001953 25840.001465 19802.000977 13764.000488 Narrow Moat 25840.001465 19802.000977 13764.000488 7726.000000 31878.001953 84.0% 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 43.7% 11.5% 31878.001953 25840.001465 19802.000977 13764.000488 7726.000000 $333. 6 billion 31878.001953 25840.001465 19802.000977 13764.000488 Total Fair Value Total Revenue 7726.000000 $337.1 billion $329.6 billion 7726.000000 7726.000000 No Moat 7726.000000 16.0% 7726.000000 7726.000000 Medium Stock Type Breakdown % Breakdown S&P 500 Valuation 3989.400146 2744.200073 1499.000000 High Yield Distressed Hard Asset Cyclical Slow Growth Classic Growth Aggressive Growth Speculative Growth Not Classified *Based on Morningstar analyst coverage. 0.0% 0.0% 0.0% 0.0% 19.1% 38.6% 11.5% 2.1% 28.8% 3.4% 1.2% 12.0% 7.0% 21.3% 27.1% 23.4% 4.1% 0.4% Sector S&P 500 Small Price/Fair Value P/E Price/Book Price/Sales Price/Cash Flow Dividend Yield % Profitability and Financial Health 1.00 12.14 1.29 0.88 6.10 3.76 0.90 15.79 2.03 0.93 5.99 2.24 Undervalued 0 .5 Price/Fair Value 1 Overvalued 1.5 2 Sector S&P 500 ROE % ROA % Net Margin % Debt to Capital % 11.49 3.32 8.95 53.33 15.30 6.06 8.41 36.39 0.0 0.0 Electric utilities companies are plotted based on their market cap and price/fair value ratio. Companies with a price/fair value ratio of less than one are undervalued. Companies with a ratio more than one are overvalued. Numbered plots show companies listed in the “Notable Electric Utilities Companies” chart below. 0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 H R U 0.0 0.0 S 0.0 0.5 1.0 1.5 2.0 Notable Electric Utilities Companies Name/Ticker Market 3-Yr Total Cap ($mil) Rtrn % Revenue TTM ($mil) 0.0 0.5 1.0 1.5 2.0 3-Yr Rev/ Morningstar Uncertainty Economic Share Rating Rating Moat Growth % 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 Constellation Energy Group, Inc. CEG Southern Company SO Dominion Resources, Inc. D FPL Group FPL AES Corporation AES FirstEnergy Corporation FE American Electric Power AEP Duke Energy Corporation DUK Edison International EIX Entergy Corporation ETR Progress Energy, Inc. PGN Xcel Energy, Inc. XEL PPL Corporation PPL DTE Energy Holding Company DTE 6,532.53 –16.89 18,417.50 26,796.85 21,864.99 21,014.57 1.17 16,780.37 0.64 16,049.00 2.19 15,991.00 5.31 {{{ 8.11 {{{ High Low None 0.0 0.0 0.5 0.5 0.5 V C X C C C C V 0.5 V Z Z X C X X Z X X X Z X 1.0 1.0 1.0 1.0 –0.32 5.29 1.5 1.5 2.95 5.45 4.78 3.72 2.0 2.0 2.0 –49.11 –2.10 Narrow C 0.0 –3.35 {{{ 11.48 {{{ 13.17 {{{ 6.26 {{{{ 6.04 {{{ Medium Narrow C Medium Narrow C 0.0 5.05 1.5 –4.09 5.37 –7.26 0.5 1.0 3.61 1.5 2.0 9,292.75 –14.73 14,255.00 13,403.50 15,098.78 21,278.12 11,035.23 14,657.37 10,604.79 8,817.83 11,451.57 6,463.53 –5.56 13,710.00 –4.06 13,443.00 1.53 12,754.00 –5.93 12,538.00 –0.07 11,247.86 –0.44 –0.07 0.38 –0.13 0.82 9,739.00 9,733.76 8,407.00 8,074.00 Extreme None 0.0 0.5 1.0 1.52 1.5 1.5 2.0 0.0 0.5 1.0 2.0 Medium Narrow C 0.0 0.5 1.0 3.10 1.5 5.09 5.19 5.89 3.66 3.87 2.0 16.02 –8.11 –4.97 –5.56 17.97 Low Narrow C 0.0 0.5 1.0 4.12 1.5 2.0 –7.61 {{{ 5.99 {{{ 9.02 {{{ 4.87 {{{ 5.19 {{{ 8.96 {{{{ 4.85 {{{ {{{ Medium Narrow B Medium Narrow C 0.0 4.77 2.58 1.5 C C C C 2.0 Medium Narrow C Medium Narrow C Low Narrow C Medium Narrow C Medium Narrow C Medium Narrow 3.83 4.14 4.97 4.00 6.52 –12.61 5.08 4.54 5.41 5.59 –4.91 1.49 2.88 C Consolidated Edison Company of New York, Inc. ED 11,628.51 Data as of Nov. 09, 2009 MorningstarAdvisor.com 61
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Morningstar Advisor - December/January 2010

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