Is Woolworths Holdings (JSE:WHL) A Risky Investment?
May 03
South African (JSE) Consumer Discretionary Sector Analysis
UpdatedMay 04, 2024
DataAggregated Company Financials
Companies30
- 7D3.5%
- 3M6.8%
- 1Y13.1%
- YTD11.9%
Over the last 7 days, the Consumer Discretionary industry has risen 3.5%, driven by gains from Naspers of 3.7%. This takes the industry's 12 month performance to a gain of 13%. Looking forward, earnings are forecast to decline by 2.7% per year.
Sector Valuation and Performance
Has the South African Consumer Discretionary Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 04 May 2024 | R1.0t | R702.2b | R106.0b | 8.6x | 9.6x | 1.4x |
| Mon, 01 Apr 2024 | R948.5b | R726.2b | R106.7b | 8.6x | 8.9x | 1.3x |
| Wed, 28 Feb 2024 | R944.3b | R714.3b | R108.2b | 9x | 8.7x | 1.3x |
| Fri, 26 Jan 2024 | R945.6b | R713.3b | R107.4b | 9x | 8.8x | 1.3x |
| Sun, 24 Dec 2023 | R864.1b | R710.8b | R105.8b | 8.5x | 8.2x | 1.2x |
| Tue, 21 Nov 2023 | R985.4b | R698.3b | R102.0b | 9.1x | 9.7x | 1.4x |
| Thu, 19 Oct 2023 | R893.3b | R700.3b | R104.9b | 10.2x | 8.5x | 1.3x |
| Sat, 16 Sep 2023 | R946.3b | R697.3b | R104.4b | 8.9x | 9.1x | 1.4x |
| Mon, 14 Aug 2023 | R986.3b | R690.5b | R105.0b | 8.9x | 9.4x | 1.4x |
| Wed, 12 Jul 2023 | R949.7b | R663.8b | R103.7b | 8.8x | 9.2x | 1.4x |
| Fri, 09 Jun 2023 | R933.2b | R688.5b | R74.5b | 9.7x | 12.5x | 1.4x |
| Sun, 07 May 2023 | R971.6b | R681.0b | R73.4b | 9.9x | 13.2x | 1.4x |
| Tue, 04 Apr 2023 | R1.0t | R675.3b | R72.2b | 9.9x | 13.9x | 1.5x |
| Thu, 02 Mar 2023 | R1.1t | R669.8b | R72.7b | 10.7x | 14.6x | 1.6x |
| Sat, 28 Jan 2023 | R1.1t | R646.1b | R70.1b | 11.1x | 15.8x | 1.7x |
| Mon, 26 Dec 2022 | R828.2b | R644.9b | R69.7b | 11x | 11.9x | 1.3x |
| Wed, 23 Nov 2022 | R823.1b | R632.9b | R243.3b | 9.6x | 3.4x | 1.3x |
| Fri, 21 Oct 2022 | R789.7b | R634.7b | R253.7b | 9x | 3.1x | 1.2x |
| Sun, 18 Sep 2022 | R865.3b | R631.1b | R246.6b | 10.1x | 3.5x | 1.4x |
| Tue, 16 Aug 2022 | R895.9b | R606.1b | R229.1b | 9.3x | 3.9x | 1.5x |
| Thu, 14 Jul 2022 | R875.0b | R610.2b | R235.2b | 9x | 3.7x | 1.4x |
| Sat, 11 Jun 2022 | R1.0t | R579.3b | R249.0b | 9.2x | 4.2x | 1.8x |
| Mon, 09 May 2022 | R927.6b | R577.7b | R248.9b | 8.3x | 3.7x | 1.6x |
| Wed, 06 Apr 2022 | R1.1t | R568.3b | R231.7b | 9.3x | 4.6x | 1.9x |
| Fri, 04 Mar 2022 | R1.1t | R568.6b | R239.9b | 10.1x | 4.6x | 1.9x |
| Sun, 30 Jan 2022 | R1.3t | R568.5b | R243.7b | 11.3x | 5.3x | 2.3x |
| Tue, 28 Dec 2021 | R1.3t | R565.3b | R241.0b | 11.4x | 5.5x | 2.3x |
| Thu, 25 Nov 2021 | R1.4t | R552.7b | R239.2b | 11.4x | 5.8x | 2.5x |
| Sat, 23 Oct 2021 | R1.5t | R521.5b | R89.6b | 12.1x | 16.3x | 2.8x |
| Mon, 20 Sep 2021 | R1.3t | R518.9b | R89.0b | 11.8x | 15x | 2.6x |
| Wed, 18 Aug 2021 | R1.4t | R514.7b | R86.3b | 13.1x | 16.5x | 2.8x |
| Wed, 02 Jun 2021 | R1.6t | R503.3b | R82.3b | 14.1x | 19.8x | 3.2x |
Price to Earnings Ratio
19.8x
Current Industry PE
- Investors are relatively neutral on the South African Consumer Discretionary industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 9.5x.
- The 3-year average PS ratio of 1.8x is higher than the industry's current PS ratio of 1.4x.
Past Earnings Growth
- The earnings for companies in the Consumer Discretionary industry have grown 8.8% per year over the last three years.
- Revenues for these companies have grown 12% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the South African Consumer Discretionary sector?
| ZA Market | 1.90% | |
| Consumer Discretionary | 3.48% | |
| Consumer Durables | 4.71% | |
| Specialty Stores | 4.34% | |
| Auto Components | 4.16% | |
| General Merchandise and Department Stores | 3.68% | |
| Auto | 0% | |
| Leisure | 0% | |
| Luxury | 0% | |
| Retail Distributors | 0% | |
| Online Retail and Ecommerce | 0% | |
| Hospitality | -0.81% | |
| Consumer Services | -2.67% | |
Industry PE
- Investors are most optimistic about the Auto Components industry which is trading above its 3-year average PE ratio.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
- Investors are most pessimistic about the Consumer Durables industry, which is trading below its 3-year average of 3.9x.
Forecasted Growth
- Analysts are most optimistic on the Specialty Stores industry, expecting annual earnings growth of 25% over the next 5 years.
- This is better than its past earnings decline of 14% per year.
- In contrast, the General Merchandise and Department Stores industry is expected to see its earnings decline by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| NPN Naspers | R3.76k | 3.7% +R22.4b | 17.2% | PE8.2x | |
| PPH Pepkor Holdings | R18.46 | 5.4% +R3.5b | 11.9% | PS0.8x | |
| MRP Mr Price Group | R180.85 | 7.0% +R3.1b | 22.7% | PE15.6x | |
| WHL Woolworths Holdings | R60.31 | 3.4% +R1.8b | -7.2% | PE14.9x | |
| TFG Foschini Group | R99.84 | 3.8% +R1.2b | 11.1% | PE11.5x |
