Growth of $10,000
The Growth of $10,000 graph shows a stock's performance based on how $10,000 invested in the stock would have grown over time. The growth of $10,000 begins on the date of the stock's IPO, or the first year listed on the graph, whichever is appropriate. Located alongside the stock's graph line is a line that represents the growth of $10,000 for the S&P 500 index. The third line represents the stock’s industry. These lines allow investors to compare the performance of the stock with the performance of the S&P 500 index and the stock’s industry. Both lines are plotted on a logarithmic scale, so that identical percentage changes in the value of an investment have the same vertical distance on the graph.
For example, the vertical distance between $10,000 and $20,000 is the same as the distance between $20,000 and $40,000 because both represent a 100% increase in investment value. This provides a more accurate representation of performance than would a simple arithmetic graph. The graphs are scaled so that the full length of the vertical axis represents a tenfold increase in investment value. For securities with returns that have exhibited greater than a tenfold increase over the period shown in the graph, the vertical axis has been compressed accordingly.
Forward Comparisons
Forward Comparisons are listed for the company, industry, and the S&P 500. Earnings estimate information is provided by Multex.
Next 5 Years' Estimated Growth
Represents analyst estimates of the company’s long-term growth rate.
Forward P/E
represents the share price divided by this year’s forecasted earnings.
PEG Ratio
is the forward P/E divided by estimated five-year earnings growth.
Industry Peers
The 20 largest companies in the same industry as the stock in question, ranked by market cap. For comparison, we also show each stock’s sales and Morningstar Stock Grades.
Market Cap $Mil
The total equity market value of the company, expressed in millions of dollars. It equals shares outstanding (in millions) times the stock price.
Sales $Mil
The sum of a company's revenues over the trailing 12 months (TTM). Revenues are the total sales reported by a company.
This figure gives a more accurate picture of a company’s recent performance than the most recent annual revenue figure, which may be more than a year old. A growing company’s TTM revenue should generally be higher than its Y1 revenue; if it’s not, this could be a sign that something is wrong.
This information is found in the company’s most recent 10-Q report.
Morningstar Stock Grades
The Morningstar stock-grading system consists of three grades, one in each of the following categories: Growth, Profitability, and Financial Health. They’re meant to be a quick way to get a handle on a company’s fundamentals.
All grades are based on relative rankings of companies within their sector. We use the 10 Morningstar sectors. For example, a company in the financial sector that receives an "A" in growth is a company that ranks near the top of the financial sector in terms of growth. We use sector comparisons to make sure we’re comparing apples to apples.
The grades are based solely on the numbers reported by the company in its SEC filings. Due to accounting conventions, however, these grades may or may not reflect the underlying economic reality, and investors should view the grades as a starting point for analysis rather than a definitive judgement on the company. No Morningstar analyst makes a subjective call as to what grade a company should get.
Distribution of grades: Within each sector for each of the three categories (growth, profitability, and financial health), we give equal numbers of companies As, Bs, Cs, and Ds, while the bottom 10% get Fs.
Note that there’s no grade inflation. A grade of "C" means a company ranks right around the middle of its sector. It’s therefore very tough to get straight "As."
All information used to calculate the grades comes from Morningstar’s internal equities database.