Morningstar Magazine - April/May 2018 - 69

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

Industry Structure
Moat Breakdown*

Key Stats
Industrials %

S&P 500 %

Wide Moat

25.0

24.7

Narrow Moat

37.5

No Moat

37.5

Industry Map

Aggregates

Industrials

S&P 500

Number of Companies

224

506

40.3

Total Market Cap $mil

4,589,483

21,659,145

20.6

Total Fair Value $mil

4,524,409

20,433,851

Total Revenue $mil
Stock Type Breakdown

Industrials %

32,295,104

25840.0015
25840.0015
19802.0010
19802.0010

10,481,996
13764.0005
13764.0005

7726.0000
7726.0000

S&P 500 %

5234.6003
3989.4002

2.4

Valuation

Distressed

0.4

2.6

Price/Fair Value

Hard Asset

0.0

0.0

P/E

37.1

38.7

Price/Book

3.11

2.34

Slow Growth

1.3

20.4

Price/Sales

1.63

2.87

Classic Growth

0.9

9.5

Price/CF

15.36

21.94

Aggressive Growth

0.0

5.7

Dividend Yield %

1.97

2.63

0.0

3.0

59.8

0.0

Industrials

S&P 500

ROE %

15.01

24.09

ROA %

5.61

5.52

Not Classified
*Based on Morningstar analyst coverage.

Medium

6479.8004

0.4

Speculative Growth

Large

31878.0020
31878.0020

High Yield

Cyclical

Market
Cap

2744.2001
1499.0000
1498.0

1.01
636.4

Profitability & Financial Health

S&P 500

Industrials

22.69

Small

1282.6

1067.2
851.8

421.0

1.06
44.36

Net Margin %

7.45

9.86

Debt/Capital %

37.36

49.95

Undervalued

Overvalued

0
0.5
Price/Fair Value

1

2

1.5

Industrials 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

Industrials
Name/Ticker
1

Boeing BA

Market
Cap ($mil)

Revenue
TTM ($mil)

Price/
Sales

Economic
Moat

Morningstar Uncertainty
Rating
Rating

202,834.96

93,392.00

2.37

Wide

QQ

High

ProfitGrowth ability
Grade Grade

Financial Price/
Health
Fair Dividend
Grade
Value Yield %

C

Z

X

137,185.34

31,657.00

4.56

Wide

QQ

Low

C

Z

3

General Electric GE

122,597.97

122,092.00

1.00

Wide

QQQQ

High

0.5

C

V

4

Honeywell International HON

111,401.58

40,534.00

2.88

Wide

QQQ

Medium

C

V

5

United Technologies UTX

103,923.19

59,837.00

1.80

Wide

QQQ

High

C

V

2 3M MMM

0.0

0.0

0.5

Siemens SIEGY

103,041.01

83,659.00

1.06

Narrow

QQQQ

Medium

7 Union Pacific UNP

100,140.73

21,240.00

4.92

Wide

QQQ

Medium

C

6

C

1.21

1.73

26.97
29.70

1.17

2.12

0.60

5.10

-

0.99

1.90

70.61

0.97

2.12

23.64

Z
1.0

C
Z
X

1.0

Price/
Earnings

1.5

2.0

1.5

2.0

X

0.85

3.59

14.29

Z

X

0.97

2.03

9.75
53.08

C

8

Lockheed Martin LMT

97,585.23

51,048.00

2.01

Wide

QQ

Medium

C

Z

Z

1.10

2.24

9

United Parcel Service UPS

90,788.35

65,872.00

1.39

Wide

QQQ

Medium

C

Z

X

0.90

3.23

18.61

10

Airbus AIR

89,568.48

66,767.00

1.15

Narrow

QQQ

High

C

Z

X

0.99

1.44

26.58

0.0

0.5

1.0

1.5

2.0

11

Caterpillar CAT

87,480.46

45,462.00

2.04

Wide

QQ

Medium

C

V

X

1.17

2.12

122.72

12

General Dynamics GD

66,317.15

30,973.00

2.19

Wide

QQ

Medium

C

C

Z

1.12

1.50

23.27

13

FedEx FDX

64,644.44

62,335.00

1.07

Narrow

QQQ

Medium

X

C

Z

0.98

0.79

22.69

14

Raytheon RTN

61,965.32

25,348.00

2.50

Narrow

QQ

Medium

C

C

Z

1.12

1.49

31.34

15

Northrop Grumman NOC

59,720.75

25,803.00

2.38

Narrow

QQ

Medium

X

Z

X

1.18

1.20

30.52

Data as of 02/28/2018.

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