| NAV
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| A fund's net asset value (NAV) represents its
per-share price. A fund's NAV is derived by dividing the total
net assets of the fund, less fees and expenses, by the number
of shares outstanding. See also Most Recent Price |
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| Net Assets |
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| See Fund Size |
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Net Income
(Stocks) |
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| The trailing one- and three-year annualized growth
rates in a company's net income. Net income growth shows how
rapidly a company has been able to boost its "bottom line."
Growth investors might look for companies with net income growth
of, say, 20% or more. If net income growth is NMF, it means
the company lost money in one of the years used in the growth-rate
calculation, making any growth rate Not Meaningful. |
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Net Income
Growth % (Funds) |
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| This figure represents the annualized rate of
net-income growth over the trailing one-year period for the
stocks held by a fund. Net-income growth gives a good picture
of the rate at which companies have grown their profits. All
things being equal, stocks with higher net-income growth rates
are generally more desirable than those with slower net-income
growth rates. Morningstar aggregates net-income growth figures
for mutual funds using a median methodology, whereby domestic
stocks are ordered from highest to lowest based on their net-income
growth rates. One adds up the asset weighting of each holding
until the total is equal to or greater than half of the total
weighting of all domestic stocks in the fund. The net-income
growth rate for that stock is then used to represent the net-income
growth rate of the total portfolio. |
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Net Margin
% (Stocks) |
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| This figure is a measure of profitability. It is equal to annual net income divided by revenues over the trailing 12 months. The resulting figure is then multiplied by 100. This figure gives a more accurate picture of a company's recent performance than the most-recent annual net margin figure, which may be more than a year old. The company's net income and revenues are found in the income statement of its annual report and recent 10-Qs. Example: A major retailer's net margin declined from 7.7% to 2.9% over a four year period. Over the trailing 12 months, the company's net margin continued to decline, to 2.5%. |
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% Non-US Stock
(Funds) |
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| When listed, this data point reflects only the
percentage of a portfolio's stock holdings that are held in
foreign stocks and is calculated from the fund's most recent
portfolio. Foreign stocks includes bonds that are convertible
into equity, as well as convertible preferreds. |
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Number of Holdings
in Portfolio (Funds) |
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| The total number of different holdings of a fund. This figure is meant to be a measure of portfolio risk. Specifically, the lower the figure, the more concentrated the fund is in a few companies or issues, and the more the fund is susceptible to the market fluctuations in these few holdings. This figure also provides a context for the importance of % assets in top 10 holdings. The figure is calculated from the most recent available fund holdings. It does not include a fund's short positions. This number can be quite useful for gaining greater insight into the portfolio's diversification. At Morningstar, we make every effort to gather the most up-to-date portfolio information from a fund. By law, however, funds need only report this information two times during the calendar year and they have two months after the report date to actually release the shareholder report and portfolio. |
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Open Price (Stocks)
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| The opening price of the stock for the day. |
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Operating Income
$Mil (Stocks) |
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| The gross profit less operating expenses, as reported by the company for each of the past five fiscal years. Gross profit is equal to revenues minus costs of goods sold or costs of services provided. Operating Expenses are expenses incurred within the normal operations of a business. These include selling, general, and administrative expenses, and also depreciation and amortization of fixed assets. Operating Income excludes interest income and interest expense. |
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% Other (Funds)
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| Other includes preferred stocks (equity securities
that pay dividends at a specific rate) as well as convertible
bonds and convertible preferreds, which are corporate securities
that are exchangeable for a set amount of another form of security
(usually common shares) at a prestated price. Other also may
denote holdings in not-so-neatly-categorized securities, such
as warrants and options. |
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PEG Ratio (Stocks)
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| A stock's price/earnings ratio divided by the
company's projected EPS growth. The price/earnings ratio used
in the numerator of this ratio is calculated by taking the current
share price and dividing by the mean EPS estimate for the current
fiscal year. A PEG Ratio means nothing in itself, so for comparison
we show the industry and S&P 500 averages. |
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PEG Payback
(Stocks) |
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| The number of years it would take for a company's cumulative earnings (beginning at a base level of $1.00) to equal the stock's current P/E ratio, assuming that the company continues to increase its annual earnings at the growth rate used to calculate the PEG ratio. A PEG payback period of six years, for example, means that it would take six years for an investor to recoup the price paid now for $1 of corporate earnings (the P/E ratio). Equivalently, the PEG payback period is the number of years it would take for the cumulative earnings of a company (based on the forecast of future earnings growth used to calculate the PEG ratio) to equal the current price of the stock. In other words, the PEG payback period is the amount of time it would take for the company to "earn" its stock price. For comparison, it is also good to review a stock's PEG Payback period for both the industry and the S&P 500. |
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Portfolio |
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| See Date of Most Recent Portfolio |
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Potential Capital
Gains Exposure (Funds) |
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| Potential capital gain exposure (PCGE) is an estimate of the percent of a fund's assets that represent gains. PCGE measures how much the fund's assets have appreciated, and it can be an indicator of possible future capital gain distributions.
Morningstar calculates potential capital gain exposure (PCGE) to give investors some idea of the potential tax consequences of their investment in a fund. PCGE measures the gains that have not yet been distributed to shareholders or taxed. It is especially relevant for investors who are considering a new purchase of a fund. If there are a lot of gains embedded in the fund, the investor may potentially receive capital gain distributions for gains that happened before they purchased the fund.
A positive PCGE means that the fund's holdings have generally increased in value. For example, if a fund started with $2,000, gained $500 and lost $100, the fund's PCGE would be 17%, i.e. the net $400 gain divided by the total net assets of $2,400. The fund can either continue to hold the securities that appreciated or it can sell them. When a fund sells a security at a gain, it must distribute substantially all of those gains to shareholders that year. Investors then must pay taxes on those gains. So, a high PCGE can indicate the potential for upcoming capital gain distributions.
A negative PCGE means that the fund has reported losses on its books. For example, if a fund started with $2,000, gained $100 and lost $500, the fund's PCGE would be -25%, i.e. the net $400 loss divided by the total net assets of $1,600. The fund may be able to use those losses to offset future gains, thereby reducing the possibility of a capital gain distribution. Thus, investors should expect funds with negative capital gain exposure to be highly tax-efficient going forward.
Because the fund's asset base serves as the denominator in this calculation, a change in assets from the sale or redemption of shares can greatly influence a fund's potential capital gain exposure. As a fund's asset base grows, the tax impact of previous gains to shareholders is diminished. Conversely, a shrinking asset base amplifies the tax impact of past performance.
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Price/Book
Ratio (Stocks) |
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| The price/book ratio can tell investors approximately how much they're paying for a company's assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company's current market value. Value investors frequently look for companies that have low price/book ratios. |
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Price/Book
Ratio (Funds) |
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| The price/book (P/B) ratio of a fund is the weighted average of the price/book ratios of all the stocks in a fund's portfolio. Book value is the total assets of a company, less total liabilities (sometimes referred to as carrying value). A company's book value is calculated by dividing the market price of its outstanding stock by the company's book value, and then adjusting for the number of shares outstanding. (Stocks with negative book values are excluded from this calculation.) In computing a fund's average P/B, Morningstar weights each portfolio holding by the percentage of equity assets it represents, so that larger positions have proportionately greater influence on the final P/B. |
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Price/Cash
Flow (Stocks) |
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| A stock's current price divided by the trailing
12-month cash flow per share. |
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Price/Cash
Flow Ratio (Funds) |
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| This represents the weighted average of the price/cash-flow
ratios of the stocks in a fund's portfolio. Price/cash-flow
represents the amount an investor is willing to pay for a dollar
generated from a particular company's operations. Price/cash-flow
shows the ability of a business to generate cash and acts as
a gauge of liquidity and solvency. Because accounting conventions
differ among nations, reported earnings (and P/E ratios) may
not be comparable across national boundaries. Price/cash-flow
attempts to provide an internationally-standard measure of a
firm's stock price relative to its financial performance. |
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Price/Earnings
(Stocks) |
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| A stock's current price divided by the company's
trailing 12-month earnings per share. |
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Price/Earnings
Ratio (Funds) |
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| A fund's price/earnings ratio can act as a gauge of the fund's investment strategy in the current market climate, and whether it has a value or growth orientation. The price/earnings (P/E) ratio of a fund is the weighted average of the price/earnings ratios of the stocks in a fund's portfolio. The P/E ratio of a company, which is a comparison of the cost of the company's stock and its trailing 12-month earnings per share, is calculated by dividing these two figures. At Morningstar, in computing the average, each portfolio holding is weighted by the percentage of equity assets it represents, so that larger positions have proportionately greater influence on the fund's final P/E. A high P/E usually indicates that the market will pay more to obtain the company's earnings because it believes in the firm's ability to increase its earnings. Companies in those industries enjoying a surge of popularity (e.g.: telecommunications, biotechnology) tend to have high P/E ratios, reflecting a growth orientation. (P/Es can also be artificially inflated if a company has very weak trailing earnings, and thus a very small number in this equation's denominator.) A low P/E indicates the market has less confidence that the company's earnings will increase; however, a fund manager or an individual with a 'value investing' approach may believe such stocks have an overlooked or undervalued potential for appreciation. More staid industries, such as utilities and mining, tend to have low P/E ratios, reflecting a value orientation. |
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Price/Sales
(Stocks) |
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| A stock's current price divided by the company's
trailing 12-month sales per share. |
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Price/Sales
Ratio (Funds) |
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| This represents the weighted average of the price/sales
ratios of the stocks in a fund's portfolio. Price/sales represents
the amount an investor is willing to pay for a dollar generated
from a particular company's operations. |
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Prime Rate
Funds |
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| These funds invest in senior corporate loans
and senior secured debt securities. These funds anticipate paying
dividends that float or reset at a margin above a generally
recognized rate such as LIBOR (London Inter-Bank Offer Rate).
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Projected Earnings Growth % (Funds) |
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| This figure represents the
projected one-year earnings growth rate of the stocks held by
a fund. Projected earnings growth gives a good picture of a
company's growth projects. All things being equal, stocks with
better growth prospects are more desirable than those with poorer
growth rates. Morningstar aggregates projected earnings growth
figures for mutual funds using a median methodology, whereby
domestic stocks are ordered from highest to lowest based on
their projected earnings growth. One adds up the asset weighting
of each holding until the total is equal to or greater than
half of the total weighting of all domestic stocks in the fund.
The projected earnings growth rate for that stock is then used
to represent the projected one-year earnings growth rate of
the total portfolio. |
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