With EPS Growth And More, Breville Group (ASX:BRG) Makes An Interesting Case
Nov 28
Australian (ASX) Consumer Discretionary Sector Analysis
UpdatedDec 01, 2022
DataAggregated Company Financials
Companies124
- 7D-0.4%
- 3M2.7%
- 1Y-22.4%
- YTD-24.5%
The Consumer Discretionary industry has been flat over the last week, but Collins Foods has lost 22%. As for the longer term, the industry has declined 22% in the last year. Earnings are forecast to grow by 14% 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 |
|---|---|---|---|---|---|---|
| Thu, 01 Dec 2022 | AU$177.0b | AU$111.7b | AU$5.6b | 13.4x | 31.8x | 1.6x |
| Sat, 29 Oct 2022 | AU$168.6b | AU$111.2b | AU$5.5b | 13.5x | 30.4x | 1.5x |
| Mon, 26 Sep 2022 | AU$162.0b | AU$111.0b | AU$5.5b | 14.9x | 29.3x | 1.5x |
| Wed, 24 Aug 2022 | AU$164.4b | AU$108.3b | AU$5.4b | 15.3x | 30.5x | 1.5x |
| Fri, 22 Jul 2022 | AU$166.0b | AU$106.7b | AU$5.4b | 15.9x | 30.6x | 1.6x |
| Sun, 19 Jun 2022 | AU$145.2b | AU$106.7b | AU$5.4b | 15.6x | 26.8x | 1.4x |
| Tue, 17 May 2022 | AU$176.3b | AU$106.1b | AU$5.1b | 16.4x | 34.3x | 1.7x |
| Thu, 14 Apr 2022 | AU$185.3b | AU$106.1b | AU$5.2b | 17.8x | 35.9x | 1.7x |
| Sat, 12 Mar 2022 | AU$186.2b | AU$106.1b | AU$5.2b | 18.5x | 35.9x | 1.8x |
| Mon, 07 Feb 2022 | AU$204.3b | AU$105.1b | AU$6.0b | 16.2x | 33.9x | 1.9x |
| Wed, 05 Jan 2022 | AU$224.0b | AU$105.0b | AU$6.0b | 17.3x | 37.1x | 2.1x |
| Fri, 03 Dec 2021 | AU$215.9b | AU$105.3b | AU$6.1b | 17x | 35.6x | 2x |
| Sun, 31 Oct 2021 | AU$221.8b | AU$104.8b | AU$5.7b | 16.4x | 39.2x | 2.1x |
| Tue, 28 Sep 2021 | AU$224.0b | AU$106.0b | AU$5.7b | 16.1x | 39.3x | 2.1x |
| Thu, 26 Aug 2021 | AU$226.7b | AU$105.7b | AU$5.5b | 16.4x | 41.6x | 2.1x |
| Fri, 02 Jul 2021 | AU$215.6b | AU$105.0b | AU$5.4b | 17x | 40.3x | 2.1x |
| Mon, 05 Apr 2021 | AU$193.0b | AU$100.7b | AU$3.6b | 16.3x | 54.2x | 1.9x |
| Thu, 07 Jan 2021 | AU$178.3b | AU$98.6b | AU$1.8b | 21.1x | 96.8x | 1.8x |
| Wed, 30 Sep 2020 | AU$157.2b | AU$93.5b | AU$2.0b | 20.2x | 80x | 1.7x |
| Sat, 04 Jul 2020 | AU$139.6b | AU$92.0b | AU$2.1b | 22.8x | 66.5x | 1.5x |
| Tue, 07 Apr 2020 | AU$102.1b | AU$93.8b | AU$4.3b | 14.2x | 23.9x | 1.1x |
| Fri, 10 Jan 2020 | AU$152.0b | AU$93.6b | AU$5.9b | 19.7x | 25.9x | 1.6x |
Price to Earnings Ratio
27.6x
Current Industry PE
- Investors are pessimistic on the Australian Consumer Discretionary industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 31.8x which is lower than its 3-year average PE of 48.0x.
- The industry is trading close to its 3-year average PS ratio of 1.7x.
Past Earnings Growth
- The earnings for companies in the Consumer Discretionary industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 7.2% 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 and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Australian Consumer Discretionary sector?
| AU Market | 0.51% | |
| Consumer Discretionary | -0.35% | |
| Retail Distributors | 3.24% | |
| Luxury | 3.10% | |
| Leisure | 2.46% | |
| Consumer Durables | 1.97% | |
| Online Retail and Ecommerce | 1.59% | |
| Specialty Stores | 0.38% | |
| Hospitality | 0.33% | |
| Auto Components | -0.26% | |
| General Merchanise and Department Stores | -0.31% | |
| Auto | -1.85% | |
| Consumer Services | -6.85% | |
Industry PE
- Investors are most optimistic about the Hospitality industry which is trading above its 3-year average PE ratio of 53.4x.
- Analysts are expecting annual earnings growth of 24.0%, which is higher than its past year's earnings decline of 7.7% per year.
Forecasted Growth
- Analysts are most optimistic on the Online Retail and Ecommerce industry, expecting annual earnings growth of 51% over the next 5 years.
- However this is lower than its past earnings growth rate of 85% per year.
- In contrast, the Specialty Stores industry is expected to see its earnings growth to stay flat 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 | |
|---|---|---|---|---|---|
| ALL Aristocrat Leisure | AU$36.03 | 1.7% +AU$401.2m | -17.7% | PE25x | |
| TLC Lottery | AU$4.64 | 3.1% +AU$311.5m | n/a | PE29.8x | |
| HVN Harvey Norman Holdings | AU$4.32 | 3.6% +AU$186.9m | -13.6% | PE6.6x | |
| WES Wesfarmers | AU$49.00 | 0.3% +AU$170.2m | -15.3% | PE23.6x | |
| DMP Domino's Pizza Enterprises | AU$66.38 | 2.6% +AU$144.6m | -46.7% | PE36.2x |
