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Australian (ASX) Consumer Discretionary Sector Analysis
UpdatedNov 20, 2024
DataAggregated Company Financials
Companies102
- 7D2.6%
- 3M1.8%
- 1Y25.4%
- YTD17.1%
In the last week, the Consumer Discretionary industry is up 2.6%, with Wesfarmers up 3.0%. During this same period, the Lovisa Holdings underperformed, falling 10%. In the last 12 months, the industry was up 25%. Looking forward, earnings are forecast to grow by 11% annually.
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 |
|---|---|---|---|---|---|---|
| Wed, 20 Nov 2024 | AU$217.8b | AU$127.0b | AU$4.1b | 20x | 53.5x | 1.7x |
| Fri, 18 Oct 2024 | AU$212.2b | AU$127.0b | AU$4.3b | 19.9x | 49.9x | 1.7x |
| Sun, 15 Sep 2024 | AU$210.4b | AU$127.0b | AU$4.8b | 19.6x | 43.8x | 1.7x |
| Tue, 13 Aug 2024 | AU$207.2b | AU$124.9b | AU$5.7b | 16.8x | 36.1x | 1.7x |
| Thu, 11 Jul 2024 | AU$197.6b | AU$124.7b | AU$5.8b | 15.8x | 34.3x | 1.6x |
| Sat, 08 Jun 2024 | AU$193.0b | AU$124.4b | AU$5.7b | 15.1x | 33.6x | 1.6x |
| Mon, 06 May 2024 | AU$191.4b | AU$124.1b | AU$5.7b | 16.6x | 33.7x | 1.5x |
| Wed, 03 Apr 2024 | AU$200.5b | AU$124.2b | AU$5.7b | 17.2x | 35.3x | 1.6x |
| Fri, 01 Mar 2024 | AU$201.1b | AU$124.2b | AU$5.7b | 19.2x | 35.5x | 1.6x |
| Sun, 28 Jan 2024 | AU$195.4b | AU$126.2b | AU$4.4b | 19.5x | 44.2x | 1.5x |
| Tue, 26 Dec 2023 | AU$190.7b | AU$126.2b | AU$4.4b | 18.2x | 43.2x | 1.5x |
| Thu, 23 Nov 2023 | AU$181.6b | AU$126.1b | AU$4.4b | 17.9x | 41.7x | 1.4x |
| Sat, 21 Oct 2023 | AU$175.9b | AU$125.7b | AU$4.0b | 20.6x | 44.1x | 1.4x |
| Mon, 18 Sep 2023 | AU$186.6b | AU$125.7b | AU$4.0b | 21.5x | 46.7x | 1.5x |
| Wed, 16 Aug 2023 | AU$185.3b | AU$122.1b | AU$5.0b | 14x | 37.3x | 1.5x |
| Fri, 14 Jul 2023 | AU$177.2b | AU$122.0b | AU$5.0b | 12.8x | 35.6x | 1.5x |
| Sun, 11 Jun 2023 | AU$171.7b | AU$121.9b | AU$5.0b | 11.8x | 34.3x | 1.4x |
| Tue, 09 May 2023 | AU$183.9b | AU$121.4b | AU$4.8b | 13.8x | 38x | 1.5x |
| Thu, 06 Apr 2023 | AU$183.7b | AU$121.4b | AU$4.9b | 14.2x | 37.3x | 1.5x |
| Sat, 04 Mar 2023 | AU$176.6b | AU$121.0b | AU$4.9b | 15x | 36.1x | 1.5x |
| Mon, 30 Jan 2023 | AU$181.6b | AU$111.7b | AU$5.5b | 16.8x | 32.8x | 1.6x |
| Wed, 28 Dec 2022 | AU$166.1b | AU$111.7b | AU$5.5b | 14.1x | 30x | 1.5x |
| Fri, 25 Nov 2022 | AU$176.6b | AU$111.6b | AU$5.6b | 14.5x | 31.7x | 1.6x |
| Sun, 23 Oct 2022 | AU$164.0b | AU$111.2b | AU$5.5b | 13.3x | 29.6x | 1.5x |
| Tue, 20 Sep 2022 | AU$169.3b | AU$110.9b | AU$5.5b | 14.8x | 30.6x | 1.5x |
| Thu, 18 Aug 2022 | AU$171.3b | AU$107.6b | AU$5.5b | 15.3x | 31.2x | 1.6x |
| Sat, 16 Jul 2022 | AU$159.9b | AU$106.7b | AU$5.4b | 15.5x | 29.5x | 1.5x |
| Mon, 13 Jun 2022 | AU$155.7b | AU$106.7b | AU$5.4b | 15.7x | 28.7x | 1.5x |
| Wed, 11 May 2022 | AU$175.7b | AU$106.1b | AU$5.1b | 16.2x | 34.2x | 1.7x |
| Fri, 08 Apr 2022 | AU$186.9b | AU$106.1b | AU$5.2b | 18.6x | 36.2x | 1.8x |
| Sun, 06 Mar 2022 | AU$188.1b | AU$106.0b | AU$5.2b | 18.7x | 36.2x | 1.8x |
| Tue, 01 Feb 2022 | AU$200.0b | AU$105.0b | AU$6.0b | 15.6x | 33.1x | 1.9x |
| Thu, 30 Dec 2021 | AU$222.6b | AU$105.0b | AU$6.0b | 17.9x | 36.8x | 2.1x |
| Sat, 27 Nov 2021 | AU$219.5b | AU$105.5b | AU$6.1b | 16.9x | 36.2x | 2.1x |
Price to Earnings Ratio
36.2x
Current Industry PE
- Investors are optimistic on the Australian Consumer Discretionary industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 53.5x which is higher than its 3-year average PE of 36.7x.
- The industry is trading close to its 3-year average PS ratio of 1.6x.
Past Earnings Growth
- The earnings for companies in the Consumer Discretionary industry have declined 12% per year over the last three years.
- Meanwhile revenues for these companies have grown 6.4% per year.
- This means that although more sales are being generated, 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 Australian Consumer Discretionary sector?
| AU Market | 1.37% | |
| Consumer Discretionary | 2.57% | |
| Leisure | 4.95% | |
| Hospitality | 4.67% | |
| General Merchandise and Department Stores | 2.76% | |
| Consumer Durables | 2.06% | |
| Online Retail and Ecommerce | 0% | |
| Specialty Stores | -0.40% | |
| Auto Components | -0.44% | |
| Retail Distributors | -1.63% | |
| Consumer Services | -2.00% | |
| Auto | -8.33% | |
| Luxury | -10.24% | |
Industry PE
- Investors are most optimistic about the Consumer Services industry even though it's trading below its 3-year average PE ratio of 100x.
- Analysts expect its future annual earnings growth (16.8%) to be largely in line with prior year's earnings growth.
Forecasted Growth
- Analysts are most optimistic on the Retail Distributors industry, expecting annual earnings growth of 36% over the next 5 years.
- This is better than its past earnings decline of 16% per year.
- In contrast, the Specialty Stores industry is expected to see its earnings grow by 8.2% 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$70.66 | 3.0% +AU$2.3b | 33.9% | PE31.4x | |
| ALL Aristocrat Leisure | AU$67.57 | 1.4% +AU$597.9m | 67.4% | PE32.6x | |
| TAH Tabcorp Holdings | AU$0.56 | 15.6% +AU$170.8m | -26.0% | PS0.5x | |
| CTD Corporate Travel Management | AU$14.29 | 8.7% +AU$162.1m | -24.4% | PE24.1x | |
| BRG Breville Group | AU$32.43 | 3.0% +AU$135.3m | 35.2% | PE39.4x |
