Morningstar Magazine - October/November 2017 - 85

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

Industry Structure
Moat Breakdown*

Key Stats

Industry Map

Aggregates

Technology %

S&P 500 %

13.6

23.8

Number of Companies

Narrow Moat

41.5

42.2

No Moat

44.9

19.8

Wide Moat

Technology

S&P 500

176

500

Total Market Cap $mil

7,157,896

22,429,452

Total Fair Value $mil

6,837,236

22,370,582

Total Revenue $mil
Stock Type Breakdown

Technology %

246,104,278

S&P 500 %

3989.4002

2.8

Valuation

Distressed

1.7

3.6

Price/Fair Value

Hard Asset

0.0

0.0

P/E

24.4

42.4

Price/Book

4.18

Slow Growth

9.7

18.0

Price/Sales

3.56

Classic Growth

5.1

10.2

Price/CF

Aggressive Growth

6.3

5.8

6.8

1.6

46.0

1.4

Not Classified
*Based on Morningstar analyst coverage.

25840.0015
19802.0010

10,966,722
13764.0005

Medium

7726.0000

5234.6003

0.0

Speculative Growth

Large

31878.0020

6479.8004

High Yield

Cyclical

Market
Cap

2744.2001

Technology

S&P 500

Small

1499.0000
1498.0

1.05
636.4

26.94

1282.6

1067.2
851.8

1.00
22.68

421.0

420
336

3.21

252

2.56

84

14.07

1.86

2.11

Technology

S&P 500

ROE %

13.34

14.51

ROA %

6.46

5.21

Profitability & Financial Health

Overvalued

0

17.58

Dividend Yield %

Undervalued

168

Net Margin %

10.51

9.99

Debt/Capital %

28.97

42.96

0
0.5
Price/Fair Value

1

2

1.5

Technology 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

1.5

2.0

0.0

0.5

1.0

1.5

2.0

Technology
Name/Ticker

Market
Cap ($mil)

Revenue
TTM ($mil)

Price/
Sales

Economic
Moat

Morningstar Uncertainty
Rating
Rating

223,507.00

3.89

Narrow

QQQ

High

ProfitGrowth ability
Grade Grade

Financial Price/
Health
Fair Dividend
Grade
Value Yield %

X

Z

Z

1

Apple AAPL

847,355.65

2

Alphabet GOOGL

654,520.05

99,275.00

6.73

Wide

QQQ

High

X

C

3

Microsoft MSFT

569,503.92

89,950.00

6.51

Wide

QQQQ

Medium

0.5

C

C

4

Facebook FB

499,579.90

33,173.00

15.26

Wide

QQQ

High

Z

X

5

Tencent Holdings ADR TCEHY

395,166.51

190,410.00

13.96

Wide

QQQ

High

Z

C

0.0

0.0

6

Samsung Electronics GDR SMSN

7 Oracle ORCL

317,271.39 212,695,436.00

1.52

None

QQQ

High

209,398.84

37,728.00

5.63

Wide

0.5

C

Z
1.0

Z

V

1.13

1.46

18.57

1.05

0.00

34.64

0.89

2.11

27.59

1.11

0.00

38.47

0.95

0.19

49.31

1.5

Z
Z
1.0

Price/
Earnings

2.0

1.5

2.0

V

0.93

0.61

10.92

Z

1.10

1.34

22.77

QQQ

Medium

C

C

8

Taiwan Semiconductor Manufacturing ADR TSM

185,820.99

970,372.88

5.96

Narrow

QQ

High

X

Z

Z

1.49

3.11

16.60

9

Intel INTC

164,887.91

61,711.00

2.77

Wide

QQQ

Medium

C

C

Z

1.03

3.04

13.39

10

Cisco Systems CSCO

161,501.76

48,510.00

3.36

Narrow

QQQ

Medium

C

C

Z

0.98

3.41

16.35

11

International Business Machines IBM

134,273.96

78,439.00

1.73

Narrow

QQQ

High

C

C

Z

0.91

4.03

11.90

126,479.73

23,164.00

4.57

Narrow

QQ

Medium

C

V

Z

1.13

1.26

30.76

12 SAP ADR SAP
13

Broadcom AVGO

14 NVIDIA NVDA
15

Accenture ACN

102,758.16

16,257.00

6.67

Narrow

QQ

High

Z

V

Z

1.24

1.41 -360.00

102,276.00

8,344.00

13.35

Narrow

Q

Very High

X

X

X

1.89

0.33

48.14

83,105.43

36,090.15

2.40

Wide

QQQ

Medium

C

C

Z

1.11

1.86

23.18

Data as of 08/31/2017.

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