Wesfarmers (ASX:WES) Seems To Use Debt Quite Sensibly
Sep 20
Australian (ASX) Consumer Discretionary Sector Analysis
UpdatedSep 21, 2023
DataAggregated Company Financials
Companies124
- 7D0.4%
- 3M8.2%
- 1Y10.2%
- YTD11.3%
The Consumer Discretionary industry has been flat over the last week, but IDP Education has lost 5.0%. As for the the longer term, the industry is up 10% over the past 12 months. As for the next few years, earnings are expected to grow by 14% per annum.
Sector Valuation and Performance
Has the Australian Consumer Discretionary Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 21 Sep 2023 | AU$185.3b | AU$125.7b | AU$4.0b | 21.3x | 46.3x | 1.5x |
| Sat, 19 Aug 2023 | AU$181.3b | AU$122.2b | AU$4.9b | 14.1x | 36.7x | 1.5x |
| Mon, 17 Jul 2023 | AU$178.3b | AU$122.0b | AU$5.0b | 12.7x | 35.8x | 1.5x |
| Wed, 14 Jun 2023 | AU$173.0b | AU$121.9b | AU$5.0b | 11.8x | 34.6x | 1.4x |
| Fri, 12 May 2023 | AU$183.6b | AU$121.4b | AU$4.8b | 14.2x | 37.9x | 1.5x |
| Sun, 09 Apr 2023 | AU$182.0b | AU$121.4b | AU$4.9b | 14.3x | 37.3x | 1.5x |
| Tue, 07 Mar 2023 | AU$179.6b | AU$121.0b | AU$4.9b | 15.1x | 36.7x | 1.5x |
| Thu, 02 Feb 2023 | AU$182.6b | AU$111.7b | AU$5.5b | 16.9x | 32.9x | 1.6x |
| Sat, 31 Dec 2022 | AU$166.0b | AU$111.7b | AU$5.5b | 14.1x | 30x | 1.5x |
| Mon, 28 Nov 2022 | AU$178.3b | AU$111.6b | AU$5.6b | 13.8x | 32x | 1.6x |
| Wed, 26 Oct 2022 | AU$168.5b | AU$111.2b | AU$5.5b | 13.5x | 30.4x | 1.5x |
| Fri, 23 Sep 2022 | AU$168.6b | AU$111.0b | AU$5.5b | 15x | 30.5x | 1.5x |
| Sun, 21 Aug 2022 | AU$169.8b | AU$108.0b | AU$5.5b | 15.7x | 30.8x | 1.6x |
| Tue, 19 Jul 2022 | AU$159.9b | AU$106.7b | AU$5.4b | 15.5x | 29.5x | 1.5x |
| Thu, 16 Jun 2022 | AU$147.6b | AU$106.7b | AU$5.4b | 15.6x | 27.3x | 1.4x |
| Sat, 14 May 2022 | AU$176.3b | AU$106.1b | AU$5.1b | 16.4x | 34.3x | 1.7x |
| Mon, 11 Apr 2022 | AU$186.9b | AU$106.1b | AU$5.2b | 18.1x | 36.3x | 1.8x |
| Wed, 09 Mar 2022 | AU$183.1b | AU$106.0b | AU$5.2b | 18x | 35.3x | 1.7x |
| Fri, 04 Feb 2022 | AU$202.8b | AU$105.0b | AU$6.0b | 16.3x | 33.6x | 1.9x |
| Sun, 02 Jan 2022 | AU$219.4b | AU$105.0b | AU$6.0b | 17.7x | 36.3x | 2.1x |
| Tue, 30 Nov 2021 | AU$218.6b | AU$105.3b | AU$6.0b | 16.6x | 36.1x | 2.1x |
| Thu, 28 Oct 2021 | AU$224.2b | AU$104.8b | AU$5.7b | 16.6x | 39.6x | 2.1x |
| Sat, 25 Sep 2021 | AU$222.0b | AU$106.0b | AU$5.7b | 15.4x | 38.9x | 2.1x |
| Mon, 23 Aug 2021 | AU$225.8b | AU$105.7b | AU$5.5b | 15.8x | 41.4x | 2.1x |
| Sat, 10 Jul 2021 | AU$215.6b | AU$105.0b | AU$5.4b | 17x | 40.3x | 2.1x |
| Fri, 02 Apr 2021 | AU$193.0b | AU$100.7b | AU$3.6b | 16.3x | 54.2x | 1.9x |
| Mon, 04 Jan 2021 | AU$178.3b | AU$98.6b | AU$1.8b | 21.1x | 96.8x | 1.8x |
| Thu, 08 Oct 2020 | AU$157.2b | AU$93.5b | AU$2.0b | 20.2x | 80x | 1.7x |
Price to Earnings Ratio
80x
Current Industry PE
- Investors are relatively neutral on the Australian 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 46.5x.
- The 3-year average PS ratio of 1.7x is higher than the industry's current PS ratio of 1.5x.
Past Earnings Growth
- The earnings for companies in the Consumer Discretionary industry have grown 27% per year over the last three years.
- Revenues for these companies have grown 10% 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 Australian Consumer Discretionary sector?
| AU Market | 0.23% | |
| Consumer Discretionary | 0.35% | |
| Luxury | 1.59% | |
| Auto Components | 1.17% | |
| Hospitality | 0.71% | |
| General Merchandise and Department Stores | 0.56% | |
| Retail Distributors | 0.21% | |
| Online Retail and Ecommerce | 0% | |
| Consumer Durables | -0.0052% | |
| Specialty Stores | -0.077% | |
| Leisure | -1.29% | |
| Auto | -2.22% | |
| Consumer Services | -2.34% | |
Industry PE
- Investors are most optimistic about the Consumer Services industry, which is trading close to its 3-year average PE ratio of 95.2x.
- Analysts are expecting annual earnings growth of 23.0%, which is higher than its past year's earnings growth of 2.4% per year.
Forecasted Growth
- Analysts are most optimistic on the Auto industry, expecting annual earnings growth of 59% over the next 5 years.
- This is better than its past earnings decline of 27% per year.
- In contrast, the Specialty Stores industry is expected to see its earnings grow by 3.6% 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 | |
|---|---|---|---|---|---|
| WES Wesfarmers | AU$53.39 | 0.7% +AU$442.5m | 18.2% | PE24.6x | |
| ALL Aristocrat Leisure | AU$41.14 | 1.6% +AU$408.6m | 18.2% | PE24.5x | |
| CTT Cettire | AU$2.99 | 7.6% +AU$79.9m | 241.7% | PE71.3x | |
| NTD National Tyre & Wheel | AU$0.90 | 27.9% +AU$26.0m | 22.6% | PE35.8x | |
| JBH JB Hi-Fi | AU$45.68 | 0.5% +AU$25.1m | 13.7% | PE9.5x |
