Emirati (ADX) Financials Sector Analysis
- 7D3.8%
- 3M12.9%
- 1Y39.4%
- YTD35.6%
Over the last 7 days, the Financials industry has risen 3.8%, driven by gains from First Abu Dhabi Bank P.J.S.C of 6.4%. This takes the industry's 12 month performance to a gain of 39%.
Sector Valuation and Performance
Has the Emirati Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Thu, 09 Dec 2021 | د.إ580.6b | د.إ78.7b | د.إ32.6b | 12.3x |
| Sat, 06 Nov 2021 | د.إ535.7b | د.إ77.8b | د.إ32.6b | 11.7x |
| Mon, 04 Oct 2021 | د.إ516.9b | د.إ73.6b | د.إ29.2b | 11.1x |
| Wed, 01 Sep 2021 | د.إ504.5b | د.إ74.7b | د.إ29.1b | 11.9x |
| Thu, 08 Jul 2021 | د.إ498.9b | د.إ74.7b | د.إ29.1b | 11.2x |
| Wed, 31 Mar 2021 | د.إ444.3b | د.إ72.2b | د.إ28.0b | 9.9x |
| Sat, 02 Jan 2021 | د.إ426.2b | د.إ70.4b | د.إ24.7b | 12.1x |
| Tue, 06 Oct 2020 | د.إ397.3b | د.إ75.3b | د.إ28.9b | 9.6x |
| Fri, 10 Jul 2020 | د.إ372.1b | د.إ82.0b | د.إ34.6b | 9.6x |
| Thu, 02 Apr 2020 | د.إ341.7b | د.إ87.5b | د.إ37.9b | 10.4x |
| Sun, 05 Jan 2020 | د.إ496.9b | د.إ91.0b | د.إ40.0b | 13x |
| Wed, 09 Oct 2019 | د.إ481.6b | د.إ90.2b | د.إ41.1b | 12.5x |
| Tue, 02 Jul 2019 | د.إ467.7b | د.إ86.4b | د.إ39.0b | 11.7x |
| Fri, 05 Apr 2019 | د.إ454.4b | د.إ83.2b | د.إ38.9b | 10.5x |
| Mon, 07 Jan 2019 | د.إ433.5b | د.إ82.1b | د.إ40.4b | 10.4x |
10.4x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 11.2x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Financials industry have declined 6.9% per year over the last three years, while revenues have remained mostly flat. This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Emirati Financials sector?
| Capital Markets | 11.62% | |
| Mortgage Finance | 5.44% | |
| Banks | 3.49% | |
| Diversified Financial | 2.94% | |
| Insurance | 2.49% | |
| Consumer Finance | -9.47% | |
Industry PE: Investors are most optimistic about the Capital Markets industry even though it's trading below its 3-year average PE ratio of 41.8x. However analysts are expecting annual earnings growth of 45%, which is lower than the prior year's growth of 69% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Mortgage Finance industry, which is trading close to its 3-year average of 1.2x.
Forecasted Growth: Analysts are most optimistic on the Capital Markets industry, expecting annual earnings growth of 45% over the next 5 years. However this is lower than its past earnings growth rate of 69% per year. Meanwhile, the Diversified Financial industry is expected to see its earnings decline by 5.3% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| FAB First Abu Dhabi Bank P.J.S.C | 7.9%+د.إ16.6b | 57.5% | PB2.1x | |
| EMIRATESNBD Emirates NBD Bank PJSC | 4.2%+د.إ3.5b | 25.6% | PB1x | |
| DFM Dubai Financial Market (DFM) P.J.S.C | 12.5%+د.إ2.4b | 195.1% | PE386.3x | |
| ADCB Abu Dhabi Commercial Bank PJSC | 2.4%+د.إ1.4b | 43.1% | PB1x | |
| DIB Dubai Islamic Bank P.J.S.C | 2.3%+د.إ867.3m | 15.0% | PB1x |